Shareholders of Transcorp Hotels Plc have approved the payment of N717 million as cash dividends for the 2021 business year, after the tourism and hospitality group recorded appreciable rebound in top-line and profitability.
At the annual general meeting at Transcorp Hilton, Abuja, shareholders commended the board and management of the group for the improvements witnessed in 2021.
A shareholder, Chief Olatunde Okelana, said Transcorp Hotels’ flagship Transcorp Hilton Abuja was the safest and most serene in Abuja, noting that one of the secrets to the success of Transcorp Hotels was inclusiveness.
He pointed out that the composition of the board, which included 50 per cent female members was a contributory factor to the group’s success.
Chairman, Transcorp Hotels Plc, Mr. Emmanuel Nnorom, said the company closed the 2021 financial year on a stronger footing, with its gross revenue of N22 billion in 2021 surpassing its 2019’s 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,” Nnorom said.
He noted that the pandemic changed customer behaviour, arrival and departure patterns and the geographical business mix of the hotel, adding that the group harnessed all the changes and dominated the market as it outperformed the industry average and the N10 billion revenue recorded in 2020.
Its Managing Director, Mrs. Dupe Olusola explained that occupancy — proportion of hotel accommodation occupied — which started at 55 per cent in January 2021 grew steadily to an all-time high of 80 per cent in December 2021 while average daily rate (ADR) also grew from N69,000 in January 2021 to N83,000 in December 2021.
“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,” Olusola said.
According to her, the great progress made in 2021 reflects the growth achieved in most of the group’s business segments and the strengthening of its leisure business.
“We 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,” Olusola said.
She expressed optimism about the continued impressive performance of the company despite the cautious stance from the industry.
According to her, the group’s key focus will be a continued investment in innovation that allows it to be dynamic and agile whilst delivering superior offerings and service to all its 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,” Olusola said.
Chief Finance Officer, Transcorp Hotels Plc, Mrs. Oluwatobiloba Ojediran, stressed that 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,” Ojediran said.