The Board of Directors of Ikeja Hotel in a statement made available to the Nigerian Stock Exchange explained the reason for its poor performance in Q3’20.
According to the statement, “the Loss After Tax of N1.4 Billion recorded by the group in the Third Quarter Financial Statements was due to the continued effects of the COVID-19 pandemic on the hospitality sector, and is likely to affect declaration of dividend for the Year ended December 31, 2020. Ikeja Hotel Plc (the Company) is responding to these challenges in order to return the business to profitability”.
In addition, the Company received a letter dated October 15, 2020 from the Lagos State Government, purportedly revoking its right of occupancy on its land situated at Opebi Gorge, Ikeja, Lagos. The Company has taken legal action to contest this revocation. However, the revocation has the potential to impair the assets of the Group to the tune of N4. 63 Billion if the government succeeds.