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Tag: Transcorp Hotels

  • Shareholders enthusiastic over Transcorp Hotels’ expansion plans

    Shareholders enthusiastic over Transcorp Hotels’ expansion plans

    Shareholders of Transcorp Hotels Plc yesterday expressed confidence that the ongoing expansionary drives by the company would lead to significant improvements in returns over the years.

    At the annual general meeting held at Transcorp Hotel’s flagship property, Transcorp Hilton Abuja, shareholders said they were impressed by the company’s performance and growth plans.

    Key extracts of the audited report and accounts of the company for the year ended December 31, 2023 showed that turnover grew by 36.2 per cent to N41.46 billion in 2023 from N30.44 billion in 2022. Gross profit grew 37 per cent to N29.79 billion from N21.74 billion in 2022. Profit before tax grew by 104.8 per cent to N9.48 billion from N4.63 billion in 2022.

    Read Also: Transcorp Hotels’ shareholders get N1.33b dividends

    Chief Olatunde Okelana, a longtime shareholder of the Clcompany expressed his excitement at the year-on-year growth and his confidence in the future growth of the company.

    “I have watched this company grow in leaps and bounds over the years. Returns to shareholders is growing impressively every year, and we owe this to our experienced board and excellent management. I am excited about what the future holds for our company,” Okelana said.

    National Coordinator, Pragmatic Shareholders Association of Nigeria,  Mrs Bisi Bakare, commended the management of Transcorp Hotels, stressing the importance of the company’s core values of excellence, execution and enterprise.

    “The triple Es have been the bedrock of the business and has yielded profit,” Bakare said.      

    Addressing the shareholders, Chairman, Transcorp Hotels Plc,  Mr Emmanuel Nnorom said the exceptional performance in 2023 underscored unwavering commitment to excellence and sustainable growth.

    “Our strict adherence to corporate governance principles has been fundamental in guiding our strategic decisions. This impressive achievement and our confidence in continued business growth has consistently improved shareholder return,” Nnorom said.

    He announced that the board of directors had approved that over N2 billion be paid as dividend to the company’s shareholders, an announcement that was welcomed with rousing applause and approval by the shareholders.

    Managing Director, Transcorp Hotels Plc,  Dupe Olusola, said that 2023 was a year of exceeding performance as the company leveraged increased demand to set new operational and financial records.

    “By strategically investing in opportunities that align with our growth objectives, we have achieved impressive outcomes. Our business expansion has been propelled by reinforcing our capital base, enhancing operational efficiency, and exercising fiscal responsibility to foster sustainable growth and create value for all our stakeholders,” Olusola said.

    She addes that the positive momentum created by  the company’s successful strategy offers confidence for its 2024 outlook and beyond.

    She commended the resilience and dedication of the staff, stressing that the impressive performance reflected their commitment and hard work.

    She outlined that Transcorp Hotels is strengthening its asset base through ongoing expansion efforts.

    “A new world-class event centre is expected to open before the end of 2024. The 5,000-capacity event centre is purpose-built to host both local and international events and exhibitions.

    “The Company is also developing a 315-room 5-star hotel at the heart of Ikoyi, Lagos. Through the property, Transcorp Hotels will be able to further tap into the global luxury hotel market, estimated to expand to $107.77 billion in 2024, reaching $157.59 billion by 2029,” Olusola said.

  • Transcorp Hotels invests $200m in Ikoyi Hotel

    Transcorp Hotels invests $200m in Ikoyi Hotel

    Transcorp Hotels has announced a $200 million investment in the construction of a new 315-room hotel in Ikoyi, Lagos.

    Its Managing Director/CEO, Mrs. Dupe Olusola, made this known during a briefing after the company’s 10th Annual General Meeting (AGM) in Abuja yesterday.

    According to Mrs. Olusola, the new hotel project is part of the company’s consolidation efforts in the year, aimed at enhancing Nigeria’s reputation as a prime destination for business and leisure travelers.

    The hotel, expected to be completed soon, would offer world-class amenities and services, further solidifying Transcorp Hotels’ position as a leading player in the industry.

    Read Also: How we plan to sustain our market leadership, by Transcorp Hotels

     Mrs. Olusola stated: “We have acquired more land, bringing the total area to 14,000 square meters. This will be a world-class facility with a projected start date of 2027.”

    In addition, Mrs. Olusola said the company has concluded plans to launch its 5,000-capacity event centre in August.The state-of-the-art event centre, described as “world-class” by the MD/CEO, is expected to save the country significant foreign exchange by hosting large-scale events that would have otherwise been taken to neighboring countries like Ghana, Egypt, and Morocco.

    She said:  “We are losing business to neighbouring countries like Ghana, Egypt, and Morocco. We want all businesses and events of similar size to come to Abuja.”

    Mrs. Olusola emphasised that the event centre will be a game-changer for Nigeria’s MICE (Meetings, Incentives, Conferences, and Exhibitions) industry, attracting large-scale events and conferences that will boost economic activity and create jobs.

    With its launch in August, the event centre is poised to become a hub for business and social events, further cementing Transcorp Hotels’ commitment to Nigeria’s economic growth and development.

    Transcorp Hotels Plc reported a stellar financial performance for 2023. Gross revenue reached N41.5 billion, a 36 percent increase compared to the previous year’s N31.4 billion. Gross profit also witnessed a significant rise of 37 per cent, reaching N29.8 billion from N21.7 billion in 2022. 

    “This achievement is particularly commendable given the challenging economic conditions,” Mrs. Olusola said.

    The company attributed its success to proactive cost-efficiency measures and a relentless focus on revenue generation. Notably, profit before tax reached N9.5 billion in 2023, a 105 percent increase compared to N4.6 billion in 2022.

  • Transcorp Hotels, others rally equities to rebound

    Transcorp Hotels, others rally equities to rebound

    Nigerian equities halted recent streak of bearish run yesterday as increased buy orders for shares in Transcorp Group and other major stocks lifted the market to a modest gain of N27 billion.

    While the underlying trading sentiment remained largely negative, with more losers than gainers,  improved bargain-hunting for shares of Transcorp Hotels, its parent company, Transnational Corporations (Transcorp, MTN Nigeria Communications (MTNN) and UAC of Nigeria boosted the overall market position.

    The All Share Index (ASI)- the common value-based  index that tracks all share prices at the Nigerian Exchange (NGX), rose by 0.05 per cent to close at 98,169.30 points.

    Aggregate market value of all quoted equities increased simultaneously by N27 billion to close at N55.521 trillion.

    There were 16 gainers to 24 losers. Transcorp Hotels recorded the highest gain, in percentage terms, of 9.75 per cent to close at N96.50 per share. Livestock Feeds followed with a gain of 9.42 per cent to close at N1.51. Tantalizer grew by 9.38 per cent to close at 35 kobo per share. SUNU Assurance appreciated by 7.44 per cent to close at N1.30 while Wapic Insurance rose by 6.15 per cent to close at 69 kobo per share.

    On the negative side, Sterling Financial Holdings Company led the losers with a drop of 9.69 per cent to close at N3.82, per share. CWG followed with a decline of 9.57 per cent to close at N5.20.

    Read Also: How we plan to sustain our market leadership, by Transcorp Hotels

    International Energy Insurance shed 9.30 per cent to close at N1.17, per share. The Initiates Plc (TIP) shed 9.09 per cent to close at N1.80 while Omatek Ventures lost 8.43 per cent to close at 76 kobo per share.

    However, the momentum of activities declined as turnover dropped by 24.9 per cent to 297.202 million shares valued at N6.516 billion in 7,417 deals. Zenith Bank topped the activity chart with 48.489 million shares valued at N1.772 billion. Access Holdings followed with 39.876 million shares worth N639.980 million. Transnational Corporation (Transcorp) traded 28.473 million shares valued at N397.343 million. United Bank for Africa (UBA) traded 22.942 million shares valued at N523.553 million,  

  • How we plan to sustain our market leadership, by Transcorp Hotels

    How we plan to sustain our market leadership, by Transcorp Hotels

    • Double profit to enhance shareholders’ return
    • Why we divested from Calabar

    Transcorp Hotels Plc at the weekend gave insights into plans by the hospitality and leisure group to sustain its market leadership after profit doubled on the back of revenue expansion in 2023.

    At an analysts’ conference, the management of Transcorp Hotels said the group is focused on optimising ongoing developments and new opportunities in Lagos and Abuja to boost its market position and ensure improved returns to shareholders.

    Key extracts of the audited report and accounts of Transcorp Hotels for the year ended December 31, 2023 showed that turnover rose by 36.2 per cent from N30.44 billion in 2022 to N41.46 billion in 2023. Gross profit increased by 37 per cent from N21.74 billion to N29.79 billion. Operating expenses grew by 24.3 per cent to N17.26 billion as against N13.86 billion. Net operating profit rose by 50 per cent to N13.14 billion compared with N8.77 billion. Profit before tax doubled by 105 per cent from N4.63 billion in 2022 to N9.48 billion in 2023. Profit after tax grew by 133 per cent from N2.62 billion to N6.09 billion.

    The group’s total assets increased from N120.49 billion to N126.1 billion. Shareholders’ funds also rose from N62.79 billion to N66.80 billion.

    Managing Director, Transcorp Hotels Plc, Mrs Dupe Olusola, said the group would continuously look for ways to enhance the value and utility of its assets including through thoughtful refurbishments and adaptive reuse of spaces in order to ensure that its investments yield the best possible returns.

    She outlined that the group would focus on enhanced use of its digital platform Aura, which is revolutionising how the company drives bookings, engages with guests, and generates revenue, noting that the use of this technology underscores the group’s commitment to growth and adaptability in the digital age.

    According to her, part of the strategic growth initiatives include further upgrading of the group’s technology to enrich the guest experience, offering contactless services and personalised offerings that cater to the unique preferences of each visitor, ensuring that services are not just cutting- edge but also deeply personal.

    “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,” Olusola said.

    She added that the group remains focused on strategic sourcing and operational efficiency which are key to cost optimisation efforts, pointing out that management will continue to seek to moderate expenses without compromising the quality that the guests have come to expect from the company.

    She said the group has continued to implement eco-friendly initiatives, energy-saving measures, and sustainable sourcing in a bid to ensure its growth is driven by overall long-term focus on impressive and sustainable returns.

    “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.

    “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 travelers seeking exceptional service and memorable moments.

    “Aura by Transcorp Hotels is Africa’s best platform for connecting travellers to unique accommodation, 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,” Olusola said.

    In a regulatory filing at the weekend, the board of Transcorp Hotels explained that it has fully divested from Transcorp Hotels Calabar as part of strategic realignment and refocus of its businesses on key growth markets.

    Read Also: Transcorp Hotels to exceed N41.5b revenue with Lagos, PH expansion plans

    According to the board, the 100 per cent divestment of interest in Transcorp Hotels Calabar Limited to Eco Travels and Tours Limited, an indigenous hospitality company, has been completed.

    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’ strategic focus is on Abuja and the significant continuing investment in the iconic Transcorp Hilton Hotel and in development opportunities in Lagos,” the board stated.

    Presenting the financial highlights of the company at the analysts’ conference, Chief Finance Officer, Transcorp Hotels Plc, Mrs Oluwatobiloba Ojediran, said the group implemented several strategic initiatives to boost sales and reduce costs.

    She noted that finance cost reduced because the company promptly met its loan obligations while implementing a robust energy management strategy that has led to significant savings in the cost of power and other utilities.

    “We positioned ourselves to take advantage of the resurgence of the economy, increased business activities, and the political season. This drove revenue across our major business lines of rooms, food and beverage and conferences and events.

    “We have continued to diversify our service offerings. Innovations such as staycations and Bleisure (a blend of business and leisure) are now a mainstay, attracting a diverse clientele to the hotel,” Ojediran said.

    According to her, with the rising cost of living and foreign exchange volatilities, guests are increasingly looking to spend holidays locally instead of incurring huge costs on international travel, thus enabling the group to take advantage of the trend, known as staycation.

    She outlined that the underlying performance ratios showed general improvement with group’s gross profit margin improving from 71 per cent to 72 per cent, cost-to-income ratio of 85 per cent as against 91 per cent, post-tax return on equity rising from four per cent to nine per cent and post-tax return on assets improving from two per cent to five per cent.

    She outlined that completion of a 5,000 capacity event and lifestyle centre at Transcorp Hilton Abuja, which is expected in 2024, and a 315-key 5-star hotel with features of relaxation and lifestyle centre in Ikoyi, Lagos, which is expected in 2027 would significantly enhance the future growth of the grou.

    She explained that the Ikoyi project include a Garden space for recreation and events, a spa and gym, co-working space, café, 5-star restaurant, retail outlets and a UBA experience centre.

  • Transcorp Hotels full year profit rises 132.9% to N6.1B

    Transcorp Hotels full year profit rises 132.9% to N6.1B

    Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group, has posted a full year profit of N6.1 billion for the year ended December 31, 2023.

    The company’s unaudited financial statement for 2023 released on the Nigerian Exchange Limited reaffirmed its commitment to delivering exceptional value to stakeholders and sustaining its growth momentum.

    Its profit after tax grew by 132.9 percent to N6.1 billion ($6.8 million) from N2.6 billion ($2.9 million) achieved in the previous year.

    Transcorp Hotels Plc revenue surged by 35.8 percent to N42.7 billion ($47.5 million) in 2023 from N31.4 billion ($35.0 million) in 2022.

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    Also, the cost of sales stood at N12.089 billion from N9.052 billion, while gross profit grew 36.7 percent to N30.6 billion ($34.0 million) in 2023 from N22.4 billion ($24.9 million) during the same period in 2022.

    Its total assets stood at N125.687 billion higher than N120.487 billion recorded in the year ended 2022.

     Speaking recently on the company’s performance, Managing Director and Chief Executive Officer (CEO) of Transcorp Hotels, Dupe Olusola said the consistent financial upswing reinforces the Company’s dedication to excellence and resilience in the face of economic challenges.

    She said, “We have remained nimble, adapting quickly to meet the dynamic preferences of our guests.”

    According to her, the company continued to experience strong performance in its international business travel segment, as it took advantage of renewed investor confidence in the Nigerian economy as a new government resumed office.

    She said Transcorp Hotels continues to set the pace with excellence in the delivery of both business and leisure offerings.

    According to the company’s financial statement, the Group has sufficient capital adequacy ratio and projected liquidity that will make the business to continue to thrive.

     “This is based on historical experience that short-term obligations will be refinanced as required in the normal course of business. Liquidity ratio and continuous evaluation of current ratio of the Group is carried out on an ongoing basis to ensure that there are no going concern threats to the operations of the Group,” the company said.

  • Transcorp Hotels records 62% profit in Q3

    Transcorp Hotels records 62% profit in Q3

    Transcorp Hotels PLC, the hospitality subsidiary of Transcorp Group has announced its financial performance for the third quarter of 2023, showing a strong year-on-year growth on all indices.

    The leading hospitality brand sustained strong growth, recording 31.76% growth in revenue to N29.9bn from N22.7bn the previous year, and significantly higher than pre-covid performance just as profit also grew by 62% to N5.5bn from N3.4bn.

    The results reflect the company’s commitment to delivering exceptional value to its stakeholders and sustaining its growth momentum.

    A review of the highlights of the result further showed that revenue for the period ended September 30, 2023, was N29.9bn, compared to N22.7bn in September 30, 2022, signifying a 31.76% increase.

    Besides, profit grew by 62% to N5.5bn, from N3.4bn by the end of September 2022 while the average daily rate (ADR) increased by 38% to N134,739 from N99,390 during the same period in 2022 and the revenue per available room (REVPAR) grew to N106,244 by the end of September 2023 from N77,428 at the end of September 2022, a 34% increase.

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    Commenting on the results, Dupe Olusola, Managing Director/CEO of Transcorp Hotels Plc said “This consistent financial upswing reinforces our dedication to excellence and resilience in the face of economic challenges. We have remained nimble, adapting quickly to meet the dynamic preferences of our guests.”

    According to Olusola, the Company continued to experience strong performance in its International Business Travel segment, as it took advantage of renewed investor confidence in the Nigerian economy as a new government resumed office.

    Transcorp Hotels also continues to maintain its strong leisure business, setting the pace with excellence in the delivery of both business and leisure offerings, as the importance of the Bleisure segment expands in the industry.

    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).

    The company’s hotels include the award-winning Transcorp Hilton Abuja and Transcorp Hotels Calabar. It also owns Aura by Transcorp Hotels, an online platform for booking homes, hotels and memorable lifestyle experiences.

  • Transcorp Hotels posts N17.4billion turnover

    Transcorp Hotels Plc has recorded a turnover of N17.4 billion in the financial year ended December 31, 2018. This represents a N3.6 billion or 26 per cent increase over N13.8 recorded in 2017

    Shareholders lauded its impressive financial results for the year. They spoke during the firm’s fifth Annual General Meeting (AGM) held at the Congress Hall of of Transcorp, in Abuja.

    Following its 26 per cent increase in turnover, the shareholders have unanimously endorsed a final dividend of N1.14 billion for the 2018 financial year.  The final dividend translated to 15kobo per ordinary share, which is a 20 per cent improvement over the 12kobo per ordinary share for 2017.

    Speaking on the occasion, the Chairman of the Board of Directors, Mr. Emmanuel  Nnorom said: “Transcorp Hotels Plc has exceeded the bar with an impressive turnover of N17.4billion from N13.8billion recorded in 2017, representing an improvement of 26 per cent. This is an unprecedented achievement in the history of the company. It is a further demonstration of our ability to adapt quickly to a changing business environment while keeping pace with global best standards in hospitality.”

    The chairman also thanked the shareholders for their continued support and faith in the board and management of the company.

    Commending the company for its overall performance,  President, New Dimension Shareholders Association, Patrick Ajudua, said Transcorp Hotels Plc is an embodiment of what privatisation should be. He said good corporate governance and the presence of a focused management team who are concerned with giving returns to shareholders are some underlying factors behind the company’s continued success.

    The Managing Director/CEO, Mrs. Owen Omogiafo reiterated the company’s commitment to quality and global standard customer experience, drawing on the varied international awards conferred on the company.

  • Transcorp Hotels grows first half net profit by 83%

    Transcorp Hotels Plc recorded significant growths in turnover and profit in the first half of this year.

    Its net profit after tax rose by 83 per cent to N1.38 billion.

    Key extracts of the interim report and accounts for the first half ended June 30, 2018 showed that turnover rose by 29 per cent while profit before tax and profit after tax grew by 85 per cent and 83 per cent respectively.

    Transcorp Hotels’ group turnover rose from N6.20 billion in first half 2017 to N8.01 billion in first half 2018. Gross profit grew by 31 per cent to N5.89 billion in 2018 as against N4.50 billion in 2017. Profit before tax jumped to N2.02 billion in first half 2018 as against N1.10 billion in first half 2017 while profit after tax leapt from N760 million to N1.38 billion.

    Chief Executive Officer, Transcorp Hotels Plc, Mr. Valentine Ozigbo said the performance of the hospitality group in the first half of this year was driven primarily driven by increase in occupancy, room inventory and aggressive marketing strategies.

    “With the help of a strong and dedicated workforce, we will continue to deliver significant value to our shareholders and unrivalled service excellence to our customers,” Ozigbo said.

    According to him, in line with the company’s long-term strategy of being Africa’s leading hospitality group, the company is investing resources into diversifying its overall guest experience using technology.

    He noted that Transcorp Hotels recently launched the Transcorp Hilton mobile application, which allows guests request for dining services, housekeeping services, valet services and maintenance requests with the click of a button.

    He added that the Transcorp Hilton mobile application also allows guests to read about local attractions in Abuja, explore on-site and off-site recreational services and navigate key locations around the city through the inbuilt map.

    He said that Transcorp Hotels Calabar has also been undergoing an extensive upgrade of its existing technology and internet services, to ensure guests experiences are better personalised and customer service is seamless across digital platforms.

    “This is the only way we can remain competitive in the ever-changing business landscape”, Ozigbo said.

  • Shareholders praise Transcorp Hotels mgt

    Despite the challenging economic climate in the hospitality business in the country, shareholders of Transcorp Hotels Plc have commended the management and staff of the company for achieving an impressive financial year ended 31st December 2017.

    The Chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie disclosed this at the fourth annual general meeting (AGM) of the company in Abuja, attributing the achievement to 30 years of rich experience in providing superior luxury hospitality service.

    He said: “The management of the company is resourceful and committed as demonstrated in its profitable position every year.

    “In the first annual general meeting by any public quoted company in 2018, the shareholders unanimously approved the board’s recommendation of a final dividend of N12.45 kobo per share expressing their confidence in the Company’s ability to deliver on expectations.

    “We applaud the company for the remarkable growth it recorded amidst socio-political and economic challenges that impacted negatively on hotel occupancy.

     

     

    hotel” Ozigbo stated.

  • Hilton, Transcorp Hotels, Abuja sign 20-year extension

    Hilton  and Transcorp Hotels Plc, a subsidiary of Transnational Corporation of Nigeria Plc  yesterday announced the signing of a 20-year extension to the current  agreement to manage the iconic Transcorp Hilton hotel in Abuja. The agreement will see Hilton manage the property until 2037. The hotel, which is a national landmark for having hosted countless Heads of State and global events like the World Economic Forum on Africa, has been operated by Hilton since its opening in 1987.

    Speaking at a signing ceremony in Washington DC, Chris Nassetta, Hilton’s President and CEO, said: “We have had an incredible relationship with the Transcorp team and we are happy to announce that we will continue to grow that relationship throughout the next 20 years. With our mission to be the world’s most hospitable company, I am delighted we will be able to continue welcoming guests to this hotel until at least 2037.”

    The award-winning 667-room hotel – one of the largest in sub-Saharan Africa – is currently undergoing a multi-million dollar renovation which will transform the property. The extensive refurbishment will continue the Transcorp Hotels legacy as the leading provider of hospitality in Nigeria.

    Tony O. Elumelu, Chairman of Transcorp Plc, the largest listed conglomerate on the Nigerian stock exchange and owners of hospitality subsidiary Transcorp Hotels confirmed: “We are delighted to continue our long-standing owner-operator relationship with Hiton. Our investment in the renovation reflects our commitment to shaping Nigeria into a leading hospitality centre in the West Africa region and with Hilton as our operating partners, we are confident that we will continue to lead in the sector.”