Transcorp Hotels, the hospitality subsidiary of Transnational Corporation of Nigeria Plc, has seen its after-tax profit more than double on the firm’s pricing strategy, cost management initiative.
The hotel’s after-tax profit surged to N10.24 billion in the nine months of 2024 from N4.07 billion in the same period of 2023, re[resenting 151 percent growth over the period.
“We are pleased with the excellent performance achieved in the third quarter of 2024. The steady improvement in our operating expense margin, along with significant total profit growth, highlights the resilience of our business model and the effectiveness of our cost management strategies,” Oluwatobiloba Ojediran, chief financial officer of Transcorp Hotels Plc, stated.
“Our unwavering commitment to financial discipline and operational excellence has been instrumental in sustaining our growth trajectory, even in the face of rising inflation and other economic challenges,” she said.
Dupe Olusola, managing director/CEO of Transcorp Hotels Plc, stated that, “Transcorp Hotels Plc is proud to maintain a remarkable growth trajectory, reflecting our unwavering commitment to enhancing shareholder value.
Read also: Transcorp Hotels grow revenue by 67% to N48.49bn in Q3, 2024
“Our award-winning customer service and exceptional properties position us as the premier gateway to Nigeria’s rich hospitality and cultural experiences,” she said.
“In the coming weeks, we will unveil another landmark addition to our flagship brand, further expanding our offerings. This is in line with our mission to redefine hospitality in Africa. We remain steadfast in our dedication to delivering value to our stakeholders,” Olusola said.
The company’s stock started 2024 with a share price of N100 and traded at a share price of N97 as of October 21, 2024.
Transcorp Hotel’s revenue grew 67 percent to N48.49 billion in the third quarter of 2024 up from N28.97 billion in the same period of 2023.
A statement signed by Stanley Chikwendu, group company secretary of Transcorp Hotels, said that the remarkable revenue growth is fueled by strategic pricing initiatives and robust sales efforts across all business segments, with a particular emphasis on the targeted group and international business segments.
“The company demonstrated prudence in resources management as its operating expenses margin improved year-on-year by 4 percentage points, a testament to the company’s dynamism in navigating market landscapes.
“The outstanding results posted by the Company not only highlight its resilience, it also demonstrates its unwavering commitment to delivering consistent value through strategic focus on enhancing customer experience, driving operational efficiency, and fostering innovation in service delivery,” the statement said.
Transcorp Hotel’s occupancy rate grew to 83 percent in the third quarter of 2024 from 79 percent in the similar period of 2023.
The firm’s revenue per available room grew by 64 percent to N174,376 in the third quarter of 2024 from N106,244 in the same period of 2023.
Other operating income grew to N4.97 billion from N1.17 billion. Operating expenses grew to N20.66 billion from N13.6 billion.
Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group), one of Africa’s listed companies with strategic investments in the power, hospitality, and energy sectors.
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