Travel/Tourism
Ikeja Hotel Blames COVID-19 for N786m Post-Tax Loss in H1 2020
By Dipo Olowookere
The board of Ikeja Hotel Plc has revealed that the N786 million loss after tax the company recorded in the first six months of this year was caused by the COVID-19 pandemic.
In a statement on Monday, the firm explained that the movement restrictions imposed on some parts of the country as a result of the contagion affected its operations.
On March 30, 2020, the federal government imposed total lockdown in Lagos, Abuja and Ogun State except for essential workers.
This affected players in several sectors of the economy, including those in the hospitality business as flights and hotels were asked to shut down.
Last week, the company released its financial statements for the period ended June 30, 2020, and from the analysis by Business Post, the revenue generated during the period significantly reduced to N2.9 billion from N5.8 billion in the corresponding period of last year.
This decline in turnover was broadly impacted by the revenue raked from guests lodging in the hotel rooms. In H1 2020, only N1.7 billion was generated from rooms compared with N3.5 billion 12 months earlier, while revenue from food and beverage dropped to N887.4 million from N1.9 billion, with miscellaneous income crashing to N109.9 million from N313.3 million.
In the period under review, the cost of sales went down to N2.7 billion from N4.4 billion, while the gross profit crashed to N177.4 million from N1.5 billion in H1 2019.
However, the other income jumped to N268.3million from N149.1 million as a result of the N13.3 million made from the sales of scrap as well as exchange gain on translation of currency.
Despite the lockdown and the halting of activities in some parts of the country, the administrative and general expenses of Ikeja Hotel increased to N677.7 million from N628.1 million, while the sales and distribution expenses reduced to N124.3 million from N242.6 million, leaving the company with an operating loss of N356.3 million as against the operating profit of N728.3 million in the first six months of last year.
With a finance income of N11.5 million and finance costs of N432.3 million (versus N386.4 million in H1’19), Ikeja Hotel closed June 30, 2020, with a loss before tax of N777.1 million compared with the profit before tax of N341.9 million in 2019 half-year.
In the first six months of last year, the firm recorded a profit after tax of N284.5 million and the board has promised to improve the fortunes of the company as business activities are gradually picking up.
“The company will respond appropriately to reduce this negative impact significantly and improve the fortunes of the company as the government further relaxes COVID-19 pandemic regulations and allows resumption of international flights,” Ikeja Hotel assured.
Ikeja Hotel owns the popular Sheraton Lagos Hotel and also has significant shareholding in the Tourist Company of Nigeria Plc, owners of Federal Palace Hotel & Casino, Lagos.
By Adedapo Adesanya
The Federal Airports Authority of Nigeria (FAAN) has announced plans to introduce V-Pass, a biometric facial recognition system designed to make passenger processing faster, safer and more seamless across its domestic airports.
According to FAAN, the new technology will allow passengers to verify their identities through facial recognition after a one-time enrolment, reducing reliance on physical identification documents and shortening queues through automated electronic gates.
The authority said the system is expected to enhance airport security while improving the overall travel experience for domestic passengers.
FAAN added that V-Pass has been developed with data privacy at its core and is compliant with the Nigeria Data Protection Regulation (NDPR).
The agency described the initiative as part of its commitment to delivering smarter, technology-driven airport services and said nationwide sensitisation and rollout updates would be announced in due course.
Airports in countries including the United States, the United Kingdom, Singapore and the United Arab Emirates already deploy facial recognition technology for processes such as check-in, security screening, immigration and boarding, so the move also aligns Nigeria’s aviation sector with a growing global trend towards contactless travel.
These systems have been adopted to improve operational efficiency, strengthen security and enhance the overall passenger experience.
For FAAN, the deployment of V-Pass forms part of its broader digital transformation agenda aimed at modernising airport operations and accommodating rising passenger traffic.
Experts say that beyond improving convenience, the authority expects the biometric platform to strengthen identity verification, reduce the risk of impersonation and support more efficient airport security, while maintaining compliance with data protection.
By Aduragbemi Omiyale
About 14.12 per cent stake in Ikeja Hotel Plc has been acquired by Honeywell Group Limited, a notice on the Nigerian Exchange (NGX) Limited has revealed.
Honeywell Group took up the part of the hospitality firm through one of its affiliates known as HGL Real Estate Limited.
Ikeja Hotel, in the disclosure filed with the NGX on July 2, 2026, said the stake comprised 305,323,525 units of its equities.
“Ikeja Hotel hereby notifies the Nigerian Exchange Limited and the general public that it has received notification from HGL Real Estate Limited, an affiliate of Honeywell Group Limited, that it has acquired 305,323,525 units of Ikeja Hotel Plc’s shares, representing 14.12 per cent shareholding in the company,” the notice stated.
Ikeja Hotel is one of Nigeria’s leading hospitality investment and hotel management companies with premium hospitality assets.
It operates two leading hospitality organisations in Lagos, the Sheraton Lagos Hotel and Balmoral Convention Centre.
By Aduragbemi Omiyale
About 10 hospitality establishments, including hotels and restaurants, were sealed on Wednesday by officials of the Lagos State Environmental Protection Agency (LASEPA).
The affected businesses are located in different locations in the Alimosho Local Government Area of the metropolis, Business Post learned from a statement from the agency.
It was stated that they were sealed by LASEPA for persistent violations of environmental regulations despite repeated warnings, abatement notices, and several opportunities to comply with the agency’s directives.
According to the notice, the enforcement exercise was carried out in line with the directives of the Lagos State government to ensure strict compliance with environmental laws and to safeguard public health.
The affected facilities were said to have breached various environmental regulations, including noise pollution, air pollution, unlawful discharge of untreated effluent, obstruction of official duties, among others.
LASEPA closed the premises of Granduer Meridian at Obasa Akiniyi Street, Oluwaga, Ipaja for non-compliance with the agency’s directives; Lasola (Spazio Bar), located on Ipaja Road, Fatolu Bus Stop, Ipaja, was sealed for noise pollution and non-compliance with directives; Millennium Restaurant, located at Gate Bus Stop, Ipaja, Ayobo, was shut down for non-compliance with directives; O2 Exquisite Suites & Tower on Jimoh Akinremi Street, Jimoh Bus Stop, Akowonjo, was sealed for non-compliance with directives; and Chirozz Hotel & Suites, located on Samuel Street, Akowonjo, by Vulcanizer Bus Stop, Egbeda, was closed for noise pollution and non-compliance with directives.
In addition, House 7 Hotel, located at Remi Akande Street, Egbeda, was sealed for non-compliance with LASEPA’s directives; House 48 on Isiba Oluwo Street, Egbeda, was sealed for non-compliance with directives; Exclusive Hotel, located at Ishan Kimishe, Akesan Bus Stop, was shut down by non-compliance with directives; Sabola Ventures Limited, Iocated at Km 11, LASU–Isheri Road, Igando, was shut down for operating without evidence of an Effluent Treatment Plant (ETP), and discharging untreated effluent into public drains; and City Int’l Motel, located at Chief Olu-Adegbite Street, off Oladun Street, Council Bus Stop, Idimu, was sealed for non-compliance with directives.
