The Group Financial Statements for the Year Ended, December 31, 2020, reported a Loss After Tax of N6.72billion. This performance reflected the full impact of the Covid19 Pandemic, which shut down the economy, especially the hospitality business, from March 2020.
The lockdown for seven months of its Hotel assets brought down unprecedentedly room sales to their lowest ebb in history.
Secondly, the value of one of the Subsidiaries’ Assets amounting to N5.1billion was impaired (Investment Property N4.63billion, work in progress N473million) due to notice of revocation issued by the Lagos State Government on the Investment Property. The Company has however challenged this in Court, and hopeful that the case will be resolved in its favour.
Despite this result, the Company remains solvent, and the fundamentals remain strong. With strategic responses of the Board of Directors and Management, coupled with the availability of Covid-19 Vaccine, the business will hopefully steadily pick up.
Barring any unforeseen circumstances, Ikeja Hotel is set to return to its leading position as the Nigerian hospitality business’s flagship.