The Ikeja Hotel Plc and its subsidiary The Tourist Company of Nigeria, two of the major players in the hospitality business are bouncing back to profitability.

The Ikeja Hotel Plc achieved a turnover of N4.64 billion in the financial year ended December 31, 2006, compared with N4.19 billion in 2005. The increase in turnover was N453.2 million or 11 per cent. Though the interest and similar charges tell by 22 per cent from N123 million in 2005 to N83.3 million in the year under review. But the company makes it up, recording profit before tax of N852.8 million from N744.6 million in the preceding year. This represents an increase of 15 per cent or about N100 million. After making a provision for it of N326.8 million for tax (N310.5 million in 2005), the company recorded a net profit of N525.9 million, compared with N434.1 million in 2005. This represents an increase of 21 per cent while earning per share increased from 40 kobo in 2005 to 46 kobo in 2006.

A dividend of 10 kobo per share, amounting to N108 million. Also, the Tourist Company of Nigeria Plc (TCN) had a turnover of N1.2 billion in the year ended December 2006 while it recorded N1 billion in 2005. to N27.1 million during the year.

The company has also recorded success in areas of expansion. According to its chairman, Mr Goodie Ibru, the refurbishment of the Old wing of Federal Palace Hotel is nearing completion except the delays in procuring of furniture, fittings and equipment.

Ibru who spoke at the annual meetings of the two companies said that an agreement has been reached with Sun International Limited, a South African company, famous for its leadership role in the hospitality and tourism industry in Africa.

The company he said, also had discussion with strategic investors in order to inject fresh capital in the business. All these efforts, he stressed, aimed at repositioning the two companies for profitability in the years ahead.

Specifically, he mentioned the year 2020 which Nigeria has set to become one of the best economies in the world adding that the full potentials of tourism and the hospitality would by that time been fully harnessed.