H1’22: Transcorp Hotels shows strength to improve profitability, growth
Transcorp Hotels Plc recently released its results for the half year (H1) ended June 30, 2022, sustaining its impressive performance since its 2021 recovery. No doubt, the Company continues to set the standard in the hospitality industry with innovative ideas, focus on excellence, execution, and enterprise as its core values that help to sustain its exceptional performance, as demand continue to rise.
Impressive growth across top-to-bottom line figures in H1
The top hospitality company, a subsidiary of Transnational Corporation Plc reported a revenue growth of 71 percent to end the half year ended June 30, 2022, with N14.99 billion from N8.77 billion revenue during the same period in 2021. Profit before tax (PBT) grew to N2.37 billion in half year 2022 from a loss of N110.74 million during the same period in 2021. Basic earnings per share increased to 17kobo in H1’22 from loss per share (LPS) of 1kobo in H1’2021.
As the global economy continues to open and travel, and tourism recovery continues, occupancy averaged at 79 percent at the hotel’s flagship property, Transcorp Hilton Abuja during the first half of the year. This is a massive improvement on the previous year when the hotel recorded an occupancy rate of 54 percent over the same period.
About Transcorp Hotels Plc
Transcorp Hotels Plc was incorporated under the Companies and Allied Matters Act on July 12, 1994 as a private limited liability Company and is domiciled in Nigeria. Following a successful Initial Public Offer (IPO), the Company was in January 2015 listed on the Nigerian Exchange Limited and its shares are publicly traded.
Transcorp Hotels Plc is one of Africa’s leading hospitality companies, committed to redefining hospitality standards. Transcorp Hotels is the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group).
The Company’s hotels include the award-winning Transcorp Hilton Abuja and Transcorp Hotels Calabar. It also owns Aura, an online platform for booking accommodation, food and memorable lifestyle experiences.
The ultimate parent of the Company is Transnational Corporation Plc with 76.16percent (2021:76.16percent) shareholdings. Transcorp Hotels Plc has 10.242billion shares outstanding. While Transnational Corporation of Nigeria Plc accounts for 7.800 billion units or 76percent shareholdings, Ministry of Finance Incorporated owns 1.131billion units or 11.04percent, and Other Shareholders (1.311billion or 13percent). Transcorp Hotels Plc as at June 30, 2022 is not in full compliance with the free float requirement for the Nigerian Exchange. However, continued effort through good corporate governance practices, consistent engagements with the market, financial advisors and stakeholders are being undertaken to ensure that the Company is compliance within the agreed timelines.
The Group is principally engaged in hospitality activities; rendering of hotel services by providing luxury accommodation, exotic cuisines, fully equipped meeting rooms and leisure facilities to business travellers and tourists from all over the world.
In 2020, the Board of Transcorp Hotels Plc decided to proceed with the right issue of 2,659,574,468 Ordinary shares of 50 kobo each at N3.76kobe per share. At the conclusion of the offer, the rights issue was 99.3percent subscribed. The Board of directors passed the resolution to approve the allotment of the shares on December 1, 2020. The Company received the net offer proceeds of N9.835billion after deducting the cost of the issue which amounted to N114.797million.
Management speaks on H1’2022 scorecard
Dupe Olusola, Managing Director/ CEO of Transcorp Hotels, while commenting on the results noted that, Transcorp Hotels Plc’s properties in Abuja and Calabar remain the first-choice destination for high-profile guests, catering to guests from all over the world for any travel need including business and leisure.
“We have delivered an excellent performance in the first half of the year. We are constantly innovating and tailoring our services to the needs of our guests. We are particularly proud of the spectacular performance in our domestic tourism and leisure segment despite the recovery in our International Business Traveller (IBT) and Group Business Segments.
“Our IBT and Group business segments have continued to recover and contribute significantly to our growth. This is a testament to our commitment to continually create value for our customers and stakeholders in line with our corporate mission.
“Our half-year performance has strengthened our confidence in our ability to continue to grow and improve profitability, ensuring great returns to our shareholders,” the Managing Director/CEO added.
Oluwatobiloba Ojediran, Chief Finance Officer, while commenting on the results highlighted the stellar performance of the Company and stressed the importance of continuous improvement in operational efficiency which has supported growth.
“Our robust performance is in spite of rising consumer prices, including the price of diesel which escalated to an all-time high during the period under review,” Ojediran said.
Investing to enhance value
The hospitality brand is investing in some major projects to expand its operations and further enhance value. These projects include improvements at its hotels, especially Transcorp Hotels Calabar where rooms and facilities are being upgraded.
The Company is also developing an event center at Transcorp Hilton Abuja which will be equipped to host major events in the capital city. The project is expected to be completed in March 2023. Transcorp Hotels is also working on extending the rooming at Transcorp Hilton Abuja to cater to the frequent overflow, as the hotel remains first choice for guests in Abuja. Other projects are billed for Lagos and Port Harcourt.
Members at AGM resolved to reward shareholders, others
At the 8th Annual General Meeting (AGM) of Transcorp Hotel Plc which held on Monday, April 4, 2022, the Board of Directors got the approval of shareholders to pay a dividend of N0.07kobo per ordinary share of 50kobo to shareholders whose names appeared in the Company’s register of members as at the close of business on March 23, 2022. At the AGM, it was members specially resolved among others to invest in, acquire, or divest from any business and/or carry out as the Directors may deem appropriate and in accordance with any relevant laws, any actions, including but not limited to restructuring, reorganisation, reconstruction and such other business arrangement exercise or actions.
Investment in Aura by Transcorp Hotels has not gone unnoticed
As Nigeria’s leading hospitality company, Transcorp Hotels has set the pace in providing a platform that shows people beautiful places to travel across Nigeria, and gets the perfect place to stay, improving the attractiveness of different destinations in the country. It is quite encouraging that the company’s investment in Aura by Transcorp Hotels to support the development of domestic tourism has not gone unnoticed.
Recently, aura by Transcorp Hotels, the online booking platform which allows people to book hotels and short let apartments, experiences, and order food anywhere in Nigeria, received a Special Recognition Award for Tourism Innovation. Aura by Transcorp Hotels provides a great selection of exquisite properties at the best prices, carrying out verification on all listings on the platform to ensure that guests are choosing from the right pool of options, and in keeping with the known high standards of the parent company Transcorp Hotels Plc.
Aura won the Special Recognition Award for Tourism Innovation less than a year after its official launch. According to the organisers of the 5th edition of the Nigeria Tourism Awards, the recognition aimed at celebrating industry icons who have contributed to the growth of tourism in Nigeria. Globally, governments leverage domestic tourism as a tool to eliminate poverty, generate employment, improve economic growth, upgrade infrastructure, as well as support and develop local and national pride.