• Fri. Sep 29th, 2023

Transcorp upturns COVID-19-induced deficit; grows profits by 143%

ByBassey Udo

Apr 5, 2022


Non-Executive Director, Alex Okoh; Non-Executive Director, Owen Omogiafo; Chairman, Emmanuel Nnorom; Managing Director/CEO, Dupe Olusola; Non-Executive Director, Alexander Adeyemi; Independent Non-Executive Director, Bolanle Onagoruwa, and Non-Executive Director, Peter Elumelu, in Abuja on Monday.

Transcorp Hotels Plc recorded a 143 percent growth in its gross profit in 2021, the Chairman of its Board of Directors, Emmanuel Nnorom, announced on Monday in Abuja.

Nnorom, who spoke to shareholders of the hotel at its 8th Annual General Meeting said the profit grew to about N16.23billion, from about N6.67 billion reported in 2020.

Also, the Chief Finance Officer, Oluwatobiloba Ojediran, said Transcorp Hotels recorded a 114 percent growth in revenue, from N10.16billion in 2020, to N21.74 billion during the year.

Describing the hotel as the “Best Performing Hospitality Brand in Nigeria”, Nnorom said the Company closed the 2021 financial year strongly, with gross revenue of N22billion, surpassing its 2019’s pre-COVID revenue of N20billion.

Consequently, he annnounced the declararion of total dividend payout to its shareholders of about N717million for the year.

“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.

Although he said the COVID-19 pandemic changed customer behaviour, arrival and departure patterns and the geographical business mix of the hotel, he said the hotel management harnessed all the challenges and dominated the market and outperformed the industry average and the N10bn revenue recorded in 2020.

Managing Director/CEO, Transcorp Hotels Plc. Dupe Olusola said that occupancy — proportion of hotel accommodation occupied — which started at 55 percent in January, grew steadily to an all-time high of 80 percent in December 2021.

She said 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.

Reiterating the Chairman’s statement on revenue, the Managing Director/CEO said the Company closed the year 2021 with an impressive gross revenue of N22billion.

This great progress, she noted, reflects the growth achieved in most of the company’s business segments, and the strengthening of the 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 percent from N1.7billion in 2020 to N3.7billion at the end of 2021,” Olusola said.

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

She said the key focus, going forward, would be a continued investment in innovation that allows the hotel 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,” Olusola added.

For the Chief Finance Officer of the company, commenting on the results,. Oluwatobiloba Ojediran, the company has continued its impressive performance, despite the economic headwinds.

ShareholderS also expressed delighgt in the performance of the company despite challenges.

For Olatunde Okelana, Transcorp Hotels Plc’s is the safest and most serene in Abuja, adding that one of the secrets to the success of Transcorp Hotels Plc was its inclusiveness.

“Look at the composition of the Board,” Okelana said, it highlights that 50 percent of the Board members are women.

The Nigerian Exchange Group (NGX) said the company has continued to set the pace in the hospitality industry, reinforcing its position as a leading hospitality brand in the country.

In the second half of 2021, the company 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.

Transcorp Hotels Plc. subsidiary of Transnational Corporation of Nigeria (Transcorp), is reputed to be one of Africa’s leading hospitality companies, committed to redefining hospitality standards.

The Company’s hotels include the award-winning Transcorp Hilton Abuja and Transcorp Hotels Calabar.

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