Transcorp Hotels’ Increases Revenue To N22bn

Shareholders of Transcorp Hotels Plc have approved the payment of N717 million as dividends to shareholders of the company at its 8th annual general meeting held in Abuja yesterday.

Chairman of the board of directors, Mr Emmanuel Nnorom while reading the company’s financial statement at the AGM said the hospitality company closed the 2021 financial year strongly, with a gross revenue of N22 billion, surpassing its 2019 pre-COVID revenue of N20 billion.

“Our disciplined approach to financial management has continued to yield results as reflected in reduced finance cost during the year. During the year, Transcorp Hotels maintained its credit rating for the company and the Bonds, as two prominent rating agencies affirmed the company’s “stable” outlook,” Mr. Nnorom said.

“The pandemic changed the customer behaviour, arrival and departure patterns and the geographical business mix of the hotel. We harnessed all these and dominated the market as we outperformed the industry average and the N10bn revenue recorded in 2020,” the chairman said.

Managing director/CEO of Transcorp Hotels Plc Mrs Dupe Olusola said occupancy – proportion of hotel accommodation occupied – which started at 55 per cent in January grew steadily to a record 80 per cent in December 2021. Average Daily Rate (ADR) also grew from N69,000 in January 2021 to N83,000 in December 2021.

Mrs. Olusola said “we remained the superior choice for all, including numerous world leaders and dignitaries from around the world who we hosted in 2021. We continued to reinforce our position as the all-round industry leader with an increased focus on delivering excellent service quality, customer satisfaction and security.”

The MD said Trancorp was able to achieve the growth rate because the management became more innovative “in our leisure business segment as a response to the COVID-19 pandemic which was a key success factor for us in 2020. We pushed further in 2021 and grew revenues from this segment by 118 per cent from N1.7 billion in 2020 to N3.7 billion at the end of 2021.”

She expressed optimism about the continued impressive performance of the company despite the cautious stance from the industry.

Going forward, Olusola said “Our key focus will be a continued investment in innovation that allows us to be dynamic and agile whilst delivering superior offerings and service to all our guests.

“We will continue to innovate and optimise all the facets of our business, from operational efficiency to guest engagement, and bolstering direct revenue. The good cost-saving habits and financial strengths that we cultivated during nearly two years of volatile market conditions will be enhanced.”

Also, chief finance officer of Transcorp Hotels Plc Mrs Oluwatobiloba Ojediran said the company has continued its impressive performance despite the economic headwinds“Gross profit grew 143 per cent to N16.23 billion for the year ended December 31, 2021, as against N6.67 billion reported in 2020. We also recorded a 114 per cent growth in revenue to N21.74 billion from N10.16 billion in 2020,” Mrs Ojediran said.

In his comments, a shareholder chief Olatunde Okelana, while noting that Transcorp Hotels Plc’s flagship hotel Transcorp Hilton Abuja is the safest and most serene in Abuja, said the secrets to the success of Transcorp Hotels Plc is inclusiveness. “Look at the composition of the Board,” he stressed, highlighting that 50% of the Board members are women.

The Nigerian Exchange Group (NGX) listed hospitality giant has continued to set the pace in the industry, reinforcing its position as a leading hospitality brand. In the second half of 2021, the omcpany launched Aura by Transcorp Hotels, an online booking platform that allows people to book accommodation (hotels and apartments), order food and book diverse kinds of experiences, including tours.

The Company is developing a world-class event center at the Transcorp Hilton premises in Abuja. It is also working on a Lifestyle Center/Hotel in Lagos.
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