• Saturday, December 02, 2023
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Transcorp Hotels Plc reports 172% jump in net profit, raises revenue to N31.4 billion

Transcorp Hotels grows full year PBT by 172%

Transcorp Hotels Plc, the hospitality arm of Transcorp Group on Monday reported a Profit After Tax (PAT) of N4.5 billion, a 172 percent jump – year-on-year, from the N1.7 billion reported in 2021.

The Company also announced a 47 percent growth in revenue to N31.4 billion in 2022, the highest ever annual income since the company’s inception. Gross profit equally grew by 41 percent to N22.4 billion from the N15.9 billion recorded in 2021.

These impressive numbers were announced at its 9th Annual General Meeting held at Transcorp Hilton Abuja.

Commenting on the results, Dupe Olusola Managing Director/CEO Transcorp Hotels Plc said it was exciting to have delivered another exceptional year of revenue growth with a 47% increase to ₦32 billion in 2022 from the ₦21.7 billion recorded in 2021.

According to her, the full-fledged return of the company’s International Business Travel segment and the continued strong leisure demand contributed immensely to this performance.

“The excellent financial performance we achieved in 2022, despite adverse economic conditions, is as a result of the detailed execution of our strategy, our out of the box approach, our nimbleness and unswerving commitment to delivering value to all our stakeholders.”

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Olusola further told the shareholders that the hotel closed the year with an average occupancy rate of 78 percent, surpassing the 67 percent reported the previous year.

“This is arguably the most impressive growth in the history of our business and indeed in the Nigerian hospitality environment. Despite all the challenges, we continued to deliver superior customer experience while we retained our position as the market leader in the hospitality industry,” she stated.

On future plans, she assured that the board and management would continue to review business strategies, to optimize existing businesses, identify new opportunities and accelerate execution.

She further assured that cost optimization would be a top priority, taking advantage of the company’s robust financial management processes and procedures, without compromising on the efficient service which the brand is known for.

The Chairman of the Board of Directors, Emmanuel Nnorom announced a total dividend payment of N1.33 billion at 13 kobo per share, which was approved at the AGM. He also stated that the Company, which has been adjudged the leading hospitality brand in region, closed the 2022 financial year strongly, with occupancy, revenue and profitability indices above 2021 levels, setting new records.

“Our continued focus on strategic financial management remained beneficial, as we exercised firm discipline in capital allocation, making swift investment decisions and capturing all economic upsides, “the Chairman added.

Nnorom further stated that the Company would continue to drive key investments in innovation and cost efficiency, “including hospitality tech to improve our competitive advantage in the industry through sustainable and cost-effective strategies”.

“In staying true to our key strategic thrust of sweating our existing assets to support business expansion, we will continue to deepen our market share, while maintaining the highest service standards in line with our mission,” the Transcorp Hotels Chairman said.

The Nigerian Exchange Group (NGX)-listed hospitality brand has continued to reinforce its position as a leader in the industry, winning 16 awards in 2022, including five World Travel Awards won by Transcorp Hilton Abuja and the most Outstanding hospitality brand of the year won by Transcorp Hotels Plc.

The Company has continued to strengthen its business and investments for the future through strategic expansion. Part of that expansion strategy is to deliver a world-class event center which would be the largest in the federal capital and is being developed at the Transcorp Hilton premises in Abuja.

Another development, Transcorp Hilton Ikoyi, is expected to commence in Lagos soon. Nnorom informed the shareholders that already approvals have been received from the Lagos State government for the project and that construction would commence as soon as the funding options are ready.

“Transcorp Hotels Plc is committed to contributing to the development of the hospitality and tourism landscape in Nigeria, so, there are more developments in the pipeline as the team of competent and innovative staff work to harness various opportunities,” he added.

The company has continued to expand in Nigeria through its online booking platform Aura by Transcorp Hotels, with over 5,000 keys now in Transcorp Hotels’ portfolio, both in ownership and management.

Transcorp Hotels Plc prides itself as one of Africa’s leading hospitality companies, committed to redefining hospitality standards. As the hospitality subsidiary of Transnational Corporation Plc (Transcorp), 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.