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Ikeja Hotels Plc and Transcorp Hotels Plc have released their unaudited full-year 2025 results, both posting a strong profit and growth

The two companies made over N30 billion in profit in 2025, about 36% of what they made in the 2024 financial year.

This is a positive sign and reflects strong operational performance, which possibly contributed to their impressive market performance in 2025.

Ikeja Hotels’ share price surged by 272%, while Transcorp Hotels’ shares increased by 47%

As of last week, while Transcorp shares had gained 11% YtD, Ikeja Hotels’ YtD gain was flat, but a 29% gain in February YtD indicates rising momentum.

No doubt the companies have done well, but our focus here is on who performed better in 2025. Let us look at their financial performance.

A cursory review of their filed unaudited full-year 2025 financial statements shows that Transcorp Hotels maintained clear dominance in terms of size, revenue, profit and asset base.

On the other hand, Ikeja Hotels delivered stronger efficiency, as reflected in its net profit margins and stronger earnings per share.

While both companies earn significant revenue from room sales, which is the major contributor to their total revenue, Transcorp Hotels is still generating more revenue from its room sales than Ikeja Hotels.

That size advantage was also reflected in the profit numbers.

But when the analysis shifts from“how much profit” to “how efficiently profit is generated,” the picture becomes mixed.

In other words, this is not a simple win–lose comparison: Transcorp Hotels dominates on scale and total profits, while Ikeja Hotels stands out on profitability margins and bottom-line efficiency.

Balance Sheet

As of December 2025, Transcorp Hotels had N159.91 billion in total assets, much bigger than Ikeja Hotels’ N94.884 billion.

The structure of the balance sheet is very important to note.

While Transcorp Hotels stands out for its size, revenue, profit base, and asset strength, Ikeja Hotels presents the more compelling valuation case.

Ikeja combines stronger bottom-line efficiency metrics and higher margins with much cheaper valuation multiples, reflected in its lower P/E and more attractive growth-adjusted valuation.

At current prices, investors in Ikeja Hotels’ stock are paying N10.9 for N1 earnings, compared to Transcorp’s much higher N88.6.

Using 2025 earnings growth to adjust for growth expectations, Ikeja’s PEG of about 0.6 points to undervaluation relative to its growth profile, while Transcorp’s PEG of about 1.9 indicates a relatively more expensive stock.

Transcorp Hotels offers a stronger revenue, profit, and dividend base, and also has a higher dividend growth rate.