Prime Business AfricaNigerians spent over N18.91 billion on hotel rooms between April and June 2025, according to the second quarter (Q2) financial statements of Transcorp Hotels and Ikeja Hotel.
Prime Business Africa gathered that the amount increased by 50.13 percent compared to the N12.59 billion spent on the rooms of the two hotels in the first three months of last year.
Join our WhatsApp ChannelThe breakdown shows that the company accounted for N14.66 billion out of the total amount spent on rooms in Q1 2025, while Ikeja Hotel recorded N4.24 billion.
In the first quarter of 2024, Transcorp Hotels recorded N9.87 billion as revenue for rooms booked, and Ikeja Hotels reported that its customers paid N2.71 billion for its rooms during the same period.
Furthermore, analysis of Transcorp Hotels’ financial statements revealed that its total revenue from services like rooms, food and beverages, among others, was N21 billion in Q1 2025, up by 51.88 percent, from N13.83 billion in Q1 2024.
Transcorp Hotels said its cost of sales increased by 32.23 percent to N5.16 billion during the period under review, compared to the N3,90 billion the company spent to make its services available in the corresponding period last year.
In the earnings report, the hospitality firm also said gross profit increased by 59.61 percent year-on-year, from N9.92 billion to N15.83 billion.
However, after factoring in other operating income, impairment losses on financial assets and operating expenses, Transcorp Hotels’ operating profit decreased slightly by 0.17 percent year-on-year, from N6.9 billion to N6.89 billion.
But a 144.50 percent increase in finance income offset the decline and saved Transcorp Hotels’ bottom line, as profit before tax (PBT) grew by 1.17 percent to N6.15 billion in Q1 2025, from N6.08 billion in Q1 2024.
The company paid income tax of N1.11 billion in the first quarter of 2025, compared to the income tax of N1.06 billion recorded in the same period last year.
This left Transcorp Hotels with N5,04 billion as profit after tax (PAT) in Q1 this year, up from N5,01 billion PAT reported in Q1 2024, indicating an increase of 0.59 percent.
Ikeja Hotel Grows Revenue To N6.11bn
For Ikeja Hotel, the company reported a total revenue of N6.11 billion during the review period, up by 56.98 percent compared to the N3.89 billion turnover recorded by the company in Q1 2024.
Also, Ikeja Hotel’s cost of sales increased to N3 billion in the first quarter of this year, from the N2.21 billion recorded in the corresponding period in 2024.
However, despite the 35.77 percent increase in cost of sales, the company recorded an 85.03 percent year-on-year growth in gross profit, which grew from N1.67 billion to N3.10 billion.
Ikeja Hotel also reported that operating profit grew threefold or 151.54 percent to N2.43 billion in Q1 2025, rising from N968.30 million posted in the same period last year.
Additionally, a 101.15 percent increase in Ikeja Hotel’s finance income contributed to the 194.07 percent year-on-year increase in its profit before tax (PBT), which rose from N845.48 million to N2.48 billion.
Although this resulted in a 244.11 percent increase in income tax, as Ikeja Hotel filed N830.55 million in taxation in Q1 2025, compared to the N241.36 million filed in Q1 2024.
Ikeja Hotel also revealed that profit after tax (PAT) grew by 174.07 percent from N604.11 million in Q1 2024, to N1.65 billion in the same period this year, representing an increase of 174.07 percent.
For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: publisher@primebusiness.africa and editor@primebusiness.africa
