IKEJAHOTEL

Ikeja Hotel Plc has executed a remarkable operational turnaround, swinging from losses in FY2021–2022 to a FY2025 ROE of 17.5% (our independent cross-check suggests 36.75% on a trailing basis), with Q2-2026 revenue of ₦13.3bn and PBT margin of ~46%, reflecting genuine pricing power and cost discipline in a naira-devaluation environment that inflated hospitality revenues. However, at ₦43 the stock trades at ~11.2x trailing EPS — above our blended P/E fair value of ₦33.52 and essentially at the upper bound of our bull scenario of ₦43.36 — leaving negligible margin of safety and a -6.6% implied downside to our ₦40.14 base case. The recent 14.12% strategic acquisition by HGL Real Estate (Honeywell Group) introduces a corporate governance variable that could be either accretive or disruptive to minority shareholders.

Verdict published 2026-08-18 · fundamentals through 9M 2015 · reviewed as the data changes