Ikeja Hotels’ revenue has continued to trend upward, underscoring the resilience of its business model and the growing demand for its services in the Nigerian hospitality sector.
The hotel business favours Ikeja Hotels Plc as revenue surged by 69.4 percent to N18.8 billion in 2024 compared to N11.1 billion in 2023, Businessday findings show.
Likewise on a quarterly basis, revenue reported by the company was up 82.4 percent to N6.2 billion in the fourth quarter of 2024 compared to N3.4 billion recorded in the same period of 2023.
According to BusinessDay’s findings, “Detty December” – a month filled with concerts, beach activities, bar and restaurant visits boosted the stay of revelers in Lagos state and Abuja.
The 2024 Lagos State Detty December 2024/2025 report by MO Africa company reported that the state generated over $71.6 million in revenue from tourism, hospitality, and entertainment during the 2024 “Detty December” festivities.
The report, presented by Idris Aregbe, special adviser to Governor Babajide Sanwo-Olu on Tourism, Arts, and Culture, revealed that a larger portion of the revenue came from hotels, which contributed over $44 million, while short-let apartments accounted for $13 million.
Read also: Ikeja Hotel’s quarterly profit soars more than 28-fold to N604m
It highlighted Lagos’ status as a leading cultural and entertainment hub in Africa, attracting more than 1.2 million visitors with 90 percent of the 550,000 inbound air passengers coming from the Nigerian diaspora in December 2024.
Ikeja Hotel – a hotel development and management company with direct ownership of Sheraton Lagos Hotel, Sheraton Abuja Hotel, and Federal Palace Hotels & Casino – targets the leisure, business, and convention markets in Opebi, Ikeja, and Lagos.
Its principal business is the provision of services in the hospitality industry, including the development of other tourist facilities.
In 2024, the demands for rooms at Ikeja Hotels Plc accounted for 68 percent of the total revenue while the 49.9 percent growth in the food and beverage revenue segment was responsible for the boost in total revenue generated by the hotel business.
The food and beverage revenue segment grew to N5.1 billion in 2024, up from N3.4 billion reported in 2023. Following closely is the rooms revenue segment which grew by 77.8 percent to N12.8 billion from N7.2 in 2023.
However, minor operating departments and miscellaneous income contributed to the conglomerate’s revenue with N59.4 million and N720.5 million respectively.
Ikeja Hotels has continually expanded its participation in Nigeria’s hospitality industry through the development and acquisition of hotel and tourist facilities.
In 2002, Hans-Gremlin (Nigeria) Limited, a subsidiary of Ikeja Hotel, acquired a 51 percent equity stake in Capital Hotels Plc (owners of Sheraton Abuja Hotel) under the privatisation programme of the Federal Government of Nigeria.
This acquisition firmly consolidated the leading position of Ikeja Hotel Plc, in the nation’s hospitality industry.
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