• Monday, May 27, 2024
businessday logo


Transcorp Hotels: Poised to maintain positive performance

Transcorp Hotels: Poised to maintain positive performance

Transcorp Hotels Plc, a subsidiary of Transnational Corporation Plc, is one of Africa’s leading hospitality companies, committed to redefining hospitality across the continent.

Following its recently released full year 2023 results, the company made a presentation to analysts and investors showing its strong financial performance with an aggressive growth agenda.

It also commits to its mission of redefining hospitality in Africa through innovation and exceptional service, while creating value for its customers and other stakeholders.

Read also: Transcorp Hotels’ annual profit more than doubles to N6.1bn

Transcorp Hotels emerged best-performing stock on Nigerian Exchange Limited (NGX) in 2023, rising by 1,022.9 percent. The company which has achieved the N1trillion market capitalisation market has 10,242,528,411 shares outstanding, each valued at N97.7 as at April 19.

Last 7 Days Trades

In its full year 2023 audited results filed with the Nigerian Exchange (NGX), Transcorp Hotels reported record-breaking revenue of N41.5 billion in 2023, compared to N30.4 billion in 2022, marking a substantial 36 percent growth year-on-year (YoY), while operating income also grew by 50 percent, to close at N13.1 billion as of December 2023, compared to N8.8 billion in December 2022.

In the year 2023, the company positioned itself to take advantage of the resurgence of the economy, increased business activities, and the political season. These drove revenue across Transcorp Hotels’ major business lines of rooms, food & beverage and Conferences and events.

The company’s total revenue for the year ended December 31, 2023, was N41.5 billion, compared to N30.4 billion in December 31, 2022, signifying a 36 percent increase. Operating income grew by 50 percent from N8.8 billion in December 2022, to N13.1 billion in December 2023.

In achieving this result, Transcorp Hotels Plc leveraged its digital platform to accelerate growth. It continued to innovate and digitize, while also optimising cost and assets in line with sustainable practices.

Profit for the year grew by 133 percent, from N2.6 billion in December 2022 to N6.1 billion in December 2023. Transcorp Hotels total assets increased by 5 percent from N120.5 billion in December 2022 to N126.1 billion in December 2023.

Transcorp Hotels finance cost reduced by 8percent as compared to 2022 as a result of promptly meeting its loan obligations. This is as it implemented a robust energy management strategy that has led to significant savings in the cost of power and other utilities.

Following this impressive scorecard in 2023, Transcorp Hotels Plc proposed a final dividend of 20kobo per share payable to shareholders whose names appear in the register of members at the close of business on April 15.

The board of directors will among others items during Transcorp Hotels annual general meeting on Monday, April 29 seek shareholders’ approval for the dividend to be paid on April 30.

Dupe Olusola, Managing Director/CEO, Transcorp Hotels Plc while speaking during the analysts and investors presentation noted the exceptional strides the company has made over the past year, its commitment to sustainable practices, and forward-looking strategies.

While taking the analysts and investors through the factors that led to the company’s impressive outing in 2023 and its target for 2024, she noted that to sustain the impressive performance, Transcorp Hotels Plc focuses on key growth drivers that will ensure it continuously wins in this ever-changing industry and economy.

Read also: Transcorp Hotels sells 100% stake in Transcorp Hotels Calabar to Eco Travels and Tours

Olusola told participants at the conference presentation that Transcorp Hotels focuses on the enhanced use of its digital platform Aura, “which is revolutionising how we drive bookings, engage with guests, and generate revenue. This technology underscores our commitment to growth and adaptability in the digital age”.

Another key driver the company is focusing on is the upgrading of its technology to enrich the guest experience, offering contactless services and personalised offerings that cater to the unique preferences of each visitor while ensuring that its services are not just cutting-edge but also deeply personal.

She noted that Transcorp Hotels Plc is committed to strategic sourcing and operational efficiency which are key to its cost optimisation efforts. “We are dedicated to managing expenses without compromising the quality that our guests have come to expect from us”.

This is in addition to its focus on eco-friendly initiatives, energy-saving measures, and sustainable sourcing, and; “continuously looking for ways to enhance the value and utility of our assets – including thoughtful refurbishments and adaptive reuse of spaces, ensuring that our investments yield the best possible returns”.

“We are confident that we will maintain our performance through 2024 and beyond. We are committed to not only upholding but elevating the exceptional guest experiences that set us apart. Our strategy is to widen our portfolio, innovating and diversifying our services to drive revenue growth further whilst also focusing on operational efficiency to reinforce our position as the leader in Nigeria’s hospitality sector.

“We anticipate sharing more insights into our strategic initiatives at the upcoming annual general meeting (AGM), where we will outline the steps we are taking to secure and extend our market leadership,” the CEO of Transcorp Hotels Plc further said.

Speaking further, she said: “We are a proud subsidiary of Transnational Corporation Plc and stand as one of Africa’s premier hospitality organizations. We go beyond just providing a place to stay but are committed to redefining the hospitality experience across the continent, ensuring that every interaction with our brand is memorable and unmatched”.

According to her, “Our flagship brand, Transcorp Hilton Abuja, continues to set the standard for luxury hospitality and culinary excellence. With 670 rooms, 20 meeting rooms, and 7 restaurants, it stands as one of the largest hotels in Sub-Saharan Africa, offering a unique blend of hospitality and lifestyle experiences that resonate with both business and leisure travellers seeking exceptional service and memorable moments”.

“Aura by Transcorp Hotels is Africa’s best platform for connecting travellers to unique accommodations, great food, and memorable experiences. With 4,000 rooms across 88 Hotels and 490 apartments, Aura offers a wide range of accommodation and experience options for guests,” she added.

With hospitality experience spanning over 30 years, Transcorp Hotels’ brands are individually distinctive and collectively powerful. Its growing portfolio of award-winning and innovative brands is paving the way for superior guest experience across its key locations and all touch points.

Recently, Transcorp Hotels divested its 100 percent interest in Transcorp Hotels Calabar Limited to Eco Travels and Tours Limited, an indigenous hospitality company.

With this development, Transcorp Hotel’s strategic focus is on Abuja and the significant continuing investment in the iconic Transcorp Hilton Hotel and in development opportunities in Lagos.

Eco Travels and Tours has a diversified portfolio including hotel management, wellness and fitness facilities, family-centric spaces, and interior and exterior design and decoration.

Transcorp Hotels Plc disclosed to analysts and investors its plans to convert the existing warehouse in Transcorp Hilton Abuja to a 3,000 – 5,000 capacity Event/Lifestyle Centre. “The event centre aims to cater to the event needs of existing clientele of Transcorp as well as the general public. Estimated delivery is this year 2024,” the company said.

It also noted that the Transcorp Hotels Ikoyi is a 315-key 5-star hotel with features of relaxation and a lifestyle centre. The hotel project located in the heart of Ikoyi, Lagos will consist of a Garden space for recreation and events, a spa/gym, a co-working space, café, a 5-star restaurant, retail outlets and UBA experience centre. The project’s estimated delivery is year 2027.