Transcorp Hotels retains A- (NG) GCR rating

Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp) and owner of the iconic Transcorp Hilton Abuja and Transcorp Hotels Calabar has retained its national scale ratings at A-(NG) and A2 (NG) in the long term and short term respectively, with the outlook accorded as Stable.

Concurrently, the national scale ratings accorded to the following Issuances were also affirmed: Series 1 N10billion Fixed Rate Bond: A-(NG), Stable Outlook; and Series 2 N9.8billion Fixed Rate Bond: A-(NG), Stable Outlook.

According to Global Credit Ratings (GCR), the rating reflects Transcorp Hotels ability to maintain its market position as a leading brand in Nigeria’s hospitality industry, supported by the major renovation and facilities upgrade at Transcorp Hilton Abuja (THA) and the subsequent improvement in pricing and occupancy rate.

GCR in its report affirmed that Transcorp Hotels demonstrated a stable outlook in its businesses and the ability to maintain a positive rating in the longer term.

The available support to Transcorp Hotels as a member of Transnational Corporation of Nigeria Plc (Transcorp), and the partnership with Hilton Worldwide Limited (Hilton) is considered a rating positive.

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In the report released in August of 2019, it stated “Following the upgrade at THA and the accompanying repricing of the hotel facilities in FY18, revenue improved across all service lines, with rooms and food and beverages rising 26percent and 28percent respectively.

“Per management, the Company is currently exploring other opportunities and add-on services that could be offered to boost overall earnings going forward. The average occupancy rate in 1Q FY19 stood at about 61percent, albeit still well ahead of the industry average of 53percent. Revenue from room lodging grew by a moderate 5percent year-on-year (YoY) in first-quarter (Q1) of FY’2019, while food and other services rose 18percent and 23percent respectively,” it stated.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.