Despite Re-opening Of Economy, Ikeja Hotel Record N1.4bn Loss

Ikeja Hotel has recorded a loss of N1.4bn in nine months despite reopening of the different sectors of the Nigerian economy.

The company disclosed this in its third quarter financial report for 2020 released on Tuesday.

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The loss reported represents a 426.24 per cent drop compared to the N429m recorded as profit for the first nine months of 2019.

The hotel had said during the half year where it lost N785.9m that it was making necessary efforts to mitigate further impacts of the virus, adding that it was equally making moves to improve it’s fortunes.

The company noted that the efforts to boost profitability in the succeeding quarters would only be achievable if there are further relaxation of Covid- 19 induced restrictions.

But despite the Nigerian government easing of the lockdown restriction and reopening the economy, revenue fell 60 per cent to N3.6bn from N9.1bn recorded in the previous quarter.

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The Lagos based hotel also witnessed decline in net assets by 7.5 per cent to N13.6bn from N14.8bn recorded in the corresponding period of 2019.

The company had said the resumption of international flight would spur its profitability in the second- half result ending December this year.

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