Ikeja Hotel declares interim dividend as revenue rises

Ikeja Hotel Plc has declared an interim dividend of three kobo per share for the period ended March 31, 2026, as the hospitality company recorded improved revenue performance in the first quarter of the year.

The company disclosed this in a corporate action filing submitted to the Nigerian Exchange, stating that the dividend payment remains subject to applicable withholding tax and regulatory approval.

According to the filing, shareholders whose names appeared in the Register of Members at the close of business on Friday, May 8, 2026, would qualify for the dividend payment.

The company stated that the dividend would be paid electronically on June 5, 2026, to shareholders who had completed the e-dividend registration process and mandated the registrar to credit their bank accounts directly.

In the official notice signed by Olubunmi Asotie on behalf of OOT Nominees Ltd, the company secretary stated that the electronic payment initiative was part of efforts to improve efficiency in the dividend distribution process.

“On Friday, 5 June 2026, dividends will be paid electronically to shareholders who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts,” the statement said.

The announcement followed improved financial performance by the hospitality group during the first quarter of the year.

The company reported revenue of N6.67bn for the quarter, supported by stronger room occupancy rates and improved performance within its food and beverage operations.

Industry operators attributed the improved earnings to increased business travel activities, gradual recovery in hospitality demand, and stronger consumer spending across key urban centres.

Ikeja Hotel Plc operates major hospitality assets in Nigeria, including the Sheraton Lagos Hotel, one of the country’s prominent business hospitality destinations.

The company also used the announcement to address the issue of unclaimed dividends within the Nigerian capital market, urging shareholders yet to migrate to the electronic dividend platform to do so immediately.

“Shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment are advised to complete the e-dividend registration or contact the Registrar,” the notice stated.

The move aligns with broader capital market reforms aimed at reducing the volume of unclaimed dividends and improving efficiency within the Nigerian financial system.

The company further announced that its Register of Shareholders would be closed from Monday, May 11, to Friday, May 15, 2026, to facilitate the dividend payment process.

The hospitality industry has continued to face rising operational costs linked to energy prices, foreign exchange volatility, food inflation, and infrastructure challenges.

However, operators within the sector have increasingly focused on improving occupancy rates, conference services, and food and beverage operations to strengthen revenue generation.

The board of Ikeja Hotel Plc stated that it remained committed to sustaining investor confidence while supporting long-term growth within the Nigerian hospitality market.

According to the company secretary, the firm’s current strategy is focused on “sustaining confidence and supporting the long-term growth” of the company’s operations.

Industry stakeholders noted that consistent dividend payments by hospitality firms could strengthen investor sentiment toward the sector, particularly as operators continue efforts to recover from economic pressures experienced in recent years.

The company’s management also reiterated its commitment to operational efficiency, improved customer experience, and sustainable growth initiatives aimed at enhancing shareholder value.

Investors welcomed the dividend declaration, describing it as a positive signal regarding the company’s financial stability and growth prospects.

The company is expected to continue pursuing strategies aimed at expanding market presence, improving service delivery, and strengthening profitability across its hospitality operations.