• Sat. Sep 30th, 2023

Transcorp Hotels posts 84% jump in 2021 half year results

ByBassey Udo

Jul 30, 2021


Nigeria’s hospitality industry appears to have recovered substantially from the devastation of COVID-19 pandemic, as Transcorp Hotels Plc on Friday posted over 84 percent increase in its revenue yield reported in its un-audited financial statements for the half-year period ended June 30, 2021.

The results published on the Nigerian Exchange Group trading board showed the revenue realised from its operations during the period increased from N4.5billion in June 2020 to N8.4billion.

Total assets rose by 5.27 percent from N113billion to N119billion during the period under review.

Also, shareholders’ funds, which stood at about N60billion at the beginning of the year maintained its year-end 2020 level.

The Company said the results, which showed over 97 percent improvement year-on-year,” were testaments to its resilience, amid the continued devastation of the global economy by the pandemic, resulting in a loss before tax of N102 million in half-year 2021, compared to N3.5 billion in the corresponding period in 2020.

“Our performance reflects the capacity of our business to run sustainably and improve revenue significantly, even in tough economic conditions,” Managing Director/Chief Executive Officer of Transcorp Hotels Plc, Dupe Olusola, said.

Olusola said the management of the hotel saw demand recording significant improvements during the first half of the year, with occupancy nearing the pre-pandemic levels at some points.

For instance, she said occupancy was 67.2percent in June, growing from 44.8 percent in January.”

“We are encouraged by the signs of complete recovery in our corporate and group bookings, as companies begin to return to full operations and more physical meetings are held. In the meantime, we remain diligent in the execution of other initiatives for the year, leveraging technology and the expertise of our people to deliver best-in-class guest experience across all our assets, properties and touchpoints,” Olusola said.

Recently, the hotel added another service brand to its bouquet, Aura, an online platform for booking accommodation, staycations, food and memorable lifestyle experiences.

Aura, Olusola said, would help Transcorp Hotels to further redefine hospitality, grow domestic tourism and contribute to Nigeria’s economic growth, in line with the its purpose of improving lives and transforming Nigeria.

Reviewing Transcorp Hotel’s performance, the Chief Finance Officer, Oluwatobiloba Ojediran, said the significant increase in revenue yield for the period was consistent with an upward trend in the company’s quarterly performance, with revenue jumping from over N4 billion in the first quarter to N4.8 billion in the second quarter of 2021, resulting in a total revenue increase of over N8.8 billion.

“This is an impressive performance, as it represents 94 percent of the N9.3 billion revenue recorded in the pre-COVID-19 half of 2019.

The MD/CEO reaffirmed Transcorp Hotel’s commitment to efficiency, excellence and execution, assuring they would continue to help deliver even stronger returns to shareholders in the second half of 2021 and beyond, to reinforce its position as leaders in the hospitality sector in the country, delivering excellent service, innovation and excellent standards to all our stakeholders.

Transcorp Hotels Plc. is reputed to be one of Africa’s leading hospitality companies, with a commitment to redefine service standards across the continent, while remaining truly and authentically African.

The Company’s hotels include Transcorp Hilton Abuja and Transcorp Hotels Calabar. It also recently launched Aura, an online platform for booking accommodation, food and memorable lifestyle experiences.

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