Ikeja Hotels and Transcorp Hotels Plc are the two listed hospitality companies on the NGX.
Though operating in the same industry, they differ sharply in size, valuation, strategy, and financial execution.
Transcorp Hotels’ market capitalization stands at N1.79 trillion, placing it among the elite trillion-naira companies, while Ikeja Hotels is significantly smaller at N42.2 billion.
Both companies released their Q3 2025 unaudited results for the period ended September 30, 2025, offering a clear window into their performance.
Ikeja Hotels’ share price dropped in October from N20.50 to N18.80 following its Q3 release but regained momentum in November with a 3.2% lift, pushing its YTD gain to 73.3%.
Transcorp Hotels’ share price has been flat in November but has still delivered a strong 50.8% YTD performance.
Based on price performance alone, Ikeja Hotels outperforms, but financial strength tells a more complex story.
Transcorp Hotels remains stronger on scale, margins, and balance sheet health, while Ikeja Hotels shines in growth and efficiency. Below is the full comparison.
Between 2020 and 2024, Transcorp Hotels’ revenue grew from N10.15 billion to N70.13 billion, representing a 50% CAGR.
Ikeja Hotels’ revenue also expanded, growing from N5.07 billion in 2020 to N18.75 billion in 2024, representing a 43% CAGR.
Verdict:
In 9M 2025, Transcorp Hotels posted a gross profit of N55.06 billion, up 60% YoY, maintaining a strong gross margin of 76%.
Ikeja Hotels, in the same period, also delivered a solid margin-led performance:
Both companies suffered large losses in 2020 due to the COVID-19 pandemic’s severe blow to the hospitality industry. The rebound since then has been remarkable.
Transcorp Hotels moved from a N8.9 billion pre-tax loss in 2020 to a N22.61 billion pre-tax profit in 2024.
Ikeja Hotels also staged a strong turnaround, moving from a N7.34 billion pre-tax loss in 2020 to a N8.54 billion profit in 2024.
Ikeja Hotels also staged a strong turnaround, moving from a N7.34 billion pre-tax loss in 2020 to a N8.54 billion profit in 2024.
Verdict:
Transcorp delivers bigger profits; Ikeja delivers faster growth.
How strong are their balance sheets, and who is carrying more debt?
Transcorp Hotels and Ikeja Hotels have both shown strong balance sheets, but with different strategies for managing debt and equity.
Transcorp Hotels reported total assets of N154.25 billion as of 9M 2025, supported by N88.23 billion in equity.
Ikeja Hotels reported total assets of N90.54 billion as of 9M 2025, with N35.19 billion in equity.
Verdict:
Transcorp Hotels wins easily on balance sheet strength, with lower debt and stronger equity backing.
Transcorp Hotels has delivered consistent and rising dividends for five years:
This shows a healthy balance between shareholder rewards and reinvestment for growth.
Ikeja Hotels has also rewarded investors, though on a smaller scale:
Verdict:
What are they worth, and what is the market really saying?
Transcorp Hotels
The very high P/E suggests the market is pricing in substantial future growth, making it a premium, high-expectation stock.
The low P/E indicates Ikeja may be undervalued, offering strong earnings at a relatively cheap price.
Verdict:
Transcorp Hotels is the stronger performer overall with superior scale, stronger margins, higher profits, a healthier balance sheet, and a long-term dividend track record.
However, Ikeja Hotels is the faster-growing, more efficient, and better-valued stock, making it the standout for investors seeking growth at a discount.