Nigeria's publicly listed hospitality companies recorded a strong jump in earnings, with combined revenues increasing by almost 1 per cent year-on-year during the period due to higher room occupancy and food and beverage consumption.
Analysis of the financial statements of major hotel groups such as Transcorp Hotels Plc and Ikeja Hotels Plc shows that revenue growth was largely supported by sustained demand from corporate clients, conferences and tourism-related activities amid the improving macroeconomic environment.
Transcorp Hotels Plc, operator of Transcorp Hilton Abuja and Transcorp Hilton Ikoyi, recorded a 9 per cent increase in revenue in the nine months of 2025 to N72.31 billion from N48.49 billion in the same period of 2024, mainly driven by its flagship Transcorp Hilton Abuja, which saw strong growth in room occupancy, food and beverage sales and event hosting. Rooms revenue increased from N31.87 billion to N48.05 billion, while food and beverages income increased to N21.02 billion.
Profit after tax in the first nine months of 2025 also increased by percentage year-on-year to N14.82 billion, compared to N10.24 billion a year ago.
Similarly, Ikeja Hotels Plc, owner of Sheraton Lagos Hotel, recorded an 8 per cent increase in revenue to N18.6 billion, buoyed by growth in room occupancy and food and beverages.
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The company said its leisure segment benefited from the influx of expatriates and domestic tourists, especially during the second and third quarters of the year. Profit after tax increased from N2 billion to N4.85 billion during the period under review.
Analysts attribute the sector's growth to Nigeria's gradual economic recovery, increased corporate spending and the resurgence of conferences, exhibitions and entertainment events following the pandemic. Government efforts to boost domestic tourism and hospitality investment also supported the uptick.
According to reports, in Lagos and Abuja, hotel room rates increased by 40 percent as hotels grappled with high costs of generator fuel, imported goods and maintenance, the burden of which was passed on to guests.
According to the National Bureau of Statistics (NBS), Nigeria's consumer price index slowed by the percentage reported in September from a year earlier as rebasing took effect.
Also read: Transcorp Hotels' profit reaches record level due to boom in hospitality sector
Further analysis revealed that balance sheet analysis shows that the total assets of listed hospitality firms have increased by an average of 15 per cent, underpinning new investments in hotel upgrades, renovations and digital platforms. Meanwhile, cash flow from operations improved significantly, as strong revenues enhanced liquidity position and reduced dependence on debt.
A report compiled by Lagos-based W Hospitality Group using data from 50 international and regional hotel chains shows that hotel construction in Africa is seeing strong momentum, with 577 hotels and a total of 104,444 rooms under development in Q1 2025. This marks a percentage increase compared to a year ago.
The sector has grown by 3 percent year-on-year, with 230 hotels and 49,260 rooms currently under development. Sub-Saharan Africa also recorded growth, but at a slower pace of 6 percent, totaling 347 hotels and 55,184 rooms.
