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Tag: Transcorp Hotels

  • Transcorp Hotels reports strong H1 2025 performance with 60% revenue growth, and 71% growth profit increase YOY

    Transcorp Hotels reports strong H1 2025 performance with 60% revenue growth, and 71% growth profit increase YOY

    Transcorp Hotels Plc (“Transcorp Hotels” or the “Company”) (NGX: TRANSCOHOT), the hospitality subsidiary of Transnational Corporation Plc (“Transcorp Group”), has announced its H1 unaudited results for the period ended June 30, 2025.

    The results show an impressive 60% growth in revenue against the same period in 2024. Gross Profit increased by 71%  year on year.

    The period saw the launch of the Company’s world-class, 5,000-seat capacity Transcorp Centre, demonstrating Transcorp Hotels positioning as the event and hospitality leader in Nigeria. The Company’s successful launch of Nigeria’s largest corporate venue is further evidence of its ability to unlock new revenue streams and drive sustainable growth.

    Key Highlights

    Strong growth in Revenue

    Transcorp Hotels recorded an impressive Y-o-Y revenue growth of 60% from ₦29.72 billion in H1 2024, to ₦47.57 billion in H1 2025.

    Continuing Profitability Momentum

    Transcorp Hotels sustained its profit momentum in H1 2025, growing gross profit by 71% to ₦36.21 billion, from ₦21.19 billion of the preceding year.

    This notable growth translated to an improvement in H1 2025 gross profit margin, increasing to 76%, despite the challenging macroeconomic environment marked by rising inflation and increased operating costs.

    In line with its promise to continually deliver value, the Company is rewarding shareholders with an interim dividend of N1,024,252,841 at N0.10 for every 50 kobo ordinary share, subject to appropriate withholding tax.

    Chairman Transcorp Hotels Plc, Emmanuel Nnorom, comments: “Transcorp Hotels’ outstanding performance in the first half of 2025 furhter validates our transformative strategies, with a laser focus on innovation and operational efficiency. It affirms our steadfast dedication to delivering investor returns and signals our profound confidence in Transcorp Hotels’ future growth. Moving forward, we are confident in our ability to consistently raise the bar for the industry, fulfilling our mission to redefine hospitality in Africa.”

    MD/CEO Transcorp Hotels Plc, Uzo Oshogwe, comments: “Our exceptional H1 2025 performance reflects our relentless execution of a growth-focused agenda. These results reflect the resilience of our business model and the dedication of our team. Building on the foundation of our iconic assets, the Transcorp Hilton Abuja and the new 5,000-seat capacity Transcorp Centre, we are not just leading Nigeria’s hospitality sector, but redefining excellence across Africa. Our sustained momentum is a reflection of our commitment to innovation, operational efficiency, and value creation for all stakeholders.”

    Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation Plc, one of Africa’s leading listed companies with strategic investments in the power, hospitality, and energy sectors. Transcorp Hotels is redefining hospitality standards in Africa through its businesses, including the iconic Transcorp Hilton Abuja, Nigeria’s flagship hospitality destination, and digital platform, Aura by Transcorp Hotels.

    www.transcorphotels.com

  • Transcorp Hotels delivers record performance, revenue up by 47%

    Transcorp Hotels delivers record performance, revenue up by 47%

    Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group has reported a profit before tax (PBT) of N4.5 billion, representing a 172 percent rise year-on-year, compared to a Profit Before Tax of N1.7 billion in 2021. The Company also reported a 47 percent growth in revenue to N31.4 billion in 2022.

    The leading hospitality brand made this known at its 9th Annual General Meeting held at Transcorp Hilton Abuja on Monday.

    Commenting on the results, Dupe Olusola, Managing Director/CEO Transcorp Hotels Plc said, “We are excited to have delivered another exceptional year of revenue growth with a 47% increase to ₦32 billion in 2022 from the ₦21.7 billion recorded in 2021. The full-fledged return of our International Business Travel segment and the continued strong leisure demand contributed immensely to this performance”.

    “The excellent financial performance we achieved in 2022, despite adverse economic conditions, is as a result of the detailed execution of our strategy, our out of the box approach, our nimbleness and unswerving commitment to delivering value to all our stakeholders.”

    The Chairman of the Board of Directors, Emmanuel Nnorom announced a total dividend payment of N1.33 billion at 13 kobo per share, stating that the Company closed the 2022 financial year strongly.

    “Our continued focus on strategic financial management remained beneficial, as we exercised firm discipline in capital allocation, making swift investment decisions and capturing all economic upsides, “Nnorom added.

    He stated that the company would continue to drive key investments in innovation and cost efficiency, “including hospitality tech to improve our competitive advantage in the industry through sustainable and cost-effective strategies”.

    “In staying true to our key strategic thrust of sweating our existing assets to support business expansion, we will continue to deepen our market share, while maintaining the highest service standards in line with our mission,” the Transcorp Hotels Chairman said.

    The Shareholders at the meeting commended the management of Transcorp Hotels Plc for the superlative performance recorded in 2022, while also appreciating the myriad of awards in 2022 as testament to its leadership and quality of its offerings as the leading Africa’s hospitality provider.

    The Nigerian Exchange Group (NGX)-listed hospitality brand has continued to reinforce its position as a leader in the industry, winning 16 awards in 2022, including five World Travel Awards won by Transcorp Hilton Abuja and the most Outstanding hospitality brand of the year won by Transcorp Hotels Plc.

    The Company has continued to strengthen its business and invest for the future through strategic expansion. It is developing a world-class event center at the Transcorp Hilton premises in Abuja. Another development, Transcorp Hilton Ikoyi, is expected to commence in Lagos soon. The company has continued to expand in Nigeria through its online booking platform Aura by Transcorp Hotels, with over 5,000 keys now in Transcorp Hotels’ portfolio, both in ownership and management.

    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, an online platform for booking accommodation, food and memorable lifestyle experiences.

  • Transcorp appoints Osakwe as Non-Executive Director

    Transcorp appoints Osakwe as Non-Executive Director

    Udechukwu Obi Osakwe has been appointed a non-executive director of the leading hospitality brand Transcorp Hotels Plc, effective February 17, 2023, subject to the approval of shareholders.

    Osakwe’s appointment comes following the retirement of Mr. Alexander Adeyemi from the Board after serving for close to 4 years.

    Osakwe brings to the Board his extensive experience in Finance and Management Consulting, having held critical roles across the public and development sectors.

    He is an experienced Chartered Accountant, Finance Director, and strong finance professional with a demonstrated history in the Management Consulting Industry.

    He has worked with Donor Organizations such as the World Bank (IDA), AfDB, Global Fund and the GAVI.

    With more than 30 years of private and public sector professional experience covering management consultancy and oversight of financial management operations with the Federal Ministry of Finance, the Federal Ministry of Health Nigeria, and the Office of the Accountant-General of the Federation (Treasury House) Abuja, Osakwe is a great addition to the Board of Transcorp Hotels Plc.

    Osakwe holds a B.Sc in Accountancy from Anambra State University of Technology (ASUTECH), Enugu, and an MBA in Finance from the University of Nigeria (Enugu).

    The Board of Transcorp Hotels expressed optimism that Mr. Osakwe’s invaluable experience and commitment to corporate governance would be of great benefit in driving sustainable business growth for the company.

    The Board also expressed its appreciation to Alexander Adeyemi for his excellent contributions and commitment to the growth of the Company and wished him success in his future endeavours.

    Transcorp Hotels Plc is listed on the Nigeria Exchange Group (NGX). The leading hospitality brand is the owner of the award-winning properties, Transcorp Hilton Abuja and Transcorp Hotels Calabar. Transcorp Hotels also owns Aura by Transcorp Hotels, an online platform for booking homes, hotels and experiences.

    Transcorp Hotels Plc is one of Africa’s leading hospitality brands, committed to redefining hospitality in Africa through innovation and exceptional service.

    The company is the hospitality subsidiary of Transnational Corporation, one of Nigeria’s largest conglomerates. Its brands include Transcorp Hilton Abuja, Transcorp Hotels Calabar, and Aura by Transcorp Hotels.

  • Transcorp Hotels hard hit by COVID-19, to restructure business, reduce staff strength by 40%

    Transcorp Hotels hard hit by COVID-19, to restructure business, reduce staff strength by 40%

    The management of Transcorp Hotels, operators of the popular Transcorp Hilton Abuja, has said in order to meet its business obligations, about 40 per cent of the company employees will have to go.

    The Managing Director of the hospitality firm, Mrs Dupe Olusola, told newsmen on Thursday that its operations have been badly affected by the coronavirus disease and to remain in business, this tough decision has to be taken.

    She said all executives of Transcorp Hilton Abuja have now taken a pay cut and that another action the management is taking is to restructure the company’s business operations.

    “The impact of COVID-19 on the business is like nothing the company has ever witnessed.

    “The hotel and hospitality industry in Nigeria has never faced a crisis that brought travel to a standstill, including the Ebola Virus outbreak of 2014 and the recession of 2015.

    “The slow pick up of international travel, restriction on large gatherings, the switch to virtual meetings and fear of the virus, has drastically reduced demand for our hotels and occupancy levels to its lowest of less than 5 per cent,” Mrs Olusola said.

    “To this end, our workforce headcount will be reduced by at least 40 per cent, and our reward system will be optimised,” she declared.

    Many companies have continued to be affected by the contagion and in the second quarter of this year, the Nigerian economy contracted by 6.1 per cent and from the look of things, another recession is expected in the third quarter. It will be the second in over four years.

    According to industry analysis, the novel COVID-19 pandemic has caused the African hotel and tourism sector to lose over $50 billion in revenue.

    Amidst this, Transcorp Hotels, which trades its shares on the local exchange, has suffered unprecedented losses and is looking to restructure the business strategy of its hotels and optimize its operations. The company’s stocks have remained flat at N4 at the Lagos bourse for weeks.

    In order to make up for the losses to COVID-19 and ensure business continuity, the management is diversifying its portfolio and embarked on some cost-optimisation strategies.

    “We [have] activated various cost-saving initiatives such as renegotiations of service contracts and restructuring of our loans.

    “We suspended further commitment to buy fixed assets and operating equipment as well as reducing our energy consumption and maintenance costs.

    “Despite undertaking these, it has become apparent that more fundamental changes need to be made for the business to survive,” she said.

    Also, the company’s head said negotiations with members of staff to be laid off in the downsizing exercise are ongoing and that a health insurance package to reduce their health burden costs and other payment settlements are being discussed.

    But she said, “Despite the losses incurred, we have fulfilled our obligations to staff,” adding that, “At the inception of the pandemic, we maintained a 100 per cent salary payment to our over 900 employees in March and April.”

  • Shareholders approve Transcorp Hotels N10bn Rights Issue

    Shareholders approve Transcorp Hotels N10bn Rights Issue

    Shareholders of Transcorp Hotels Plc, owners of the iconic Transcorp Hilton Abuja and Transcorp Hotels Calabar, have unanimously authorised the board of directors to raise N10 billion through a rights issue for a fortified balance sheet.

    The company announced that the approval was given at the Extraordinary General Meeting of the company, which took place on Monday, June 29 in Lagos.

    This means the hospitality coy will issue 2,659,574,468 ordinary shares of 50 kobo each by way of a rights issue to the shareholders based on 7 new ordinary shares for every 20 ordinary shares of 50 kobo each held at a price of N3.76 per share.

    The shares will be issued from the authorised share capital of the company, which is currently at N7.5 billion comprising 15.0 billion ordinary shares of N0.50 each, and the resultant issued and fully paid-up share capital will be N5,129.989.184 consisting of 10,259,978,368 ordinary shares of N0.50 each.

    According to the Chairman of Transcorp Hotels Plc, Mr Emmanuel Nnorom, “This approval and endorsement of shareholders empower the board and management to look to the future with confidence despite the current harsh operating environment.”

    Also speaking at the meeting, Mrs Dupe Olusola, Managing Director/CEO of Transcorp Hotels Plc, welcomed this approval, saying “Our track record of excellent service delivery has positioned us as the first choice for international and local guests alike noting, we are not resting on our oars but working round the clock to innovate new products and services to further delight our guests, notable of such is the launch of asset-light strategies to deepen our hospitality footprints across Africa.”

    She further added that, “The world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit.

    “However, we are optimistic about a great recovery for the sector and your approval today shows that you also share in this mindset. We will continue to play our part in ensuring a significant recovery to the Nigerian hospitality industry.“

    A non-executive director of the company, who also represents the Ministry of Finance Incorporated on the board, Mr Alexander Adeyemi, said: “Given the challenging times the hospitality industry faces, it has become critical to inject funding into the business for a stronger balance sheet.”

  • Transcorp Hotels Fulfils Post-Privatisation Obligations

    Transcorp Hotels Fulfils Post-Privatisation Obligations

    The National Council on Privatisation (NCP) at its meeting today, presented Transcorp Hotels Plc with a Certificate of Discharge, indicating the company has fulfilled all privatisation conditions attached to the sale of the hotel and will no longer be subject to any post-privatisation monitoring.

    At a ceremony that took place at the Presidential Villa, the Vice President, Professor Yemi Osinbajo SAN GCON, who chairs the Council presented the certificate to Mr. Tony O. Elumelu CON, the Chairman of Transnational Corporation of Nigeria Plc (Transcorp), the core investor in the hotel.

    Speaking at the event, Mr. Alex Okoh, the Director-General, Bureau of Public Enterprises (BPE) stated that Transcorp excelled at achieving the KPIs established during the monitoring and evaluation of the asset. Key areas of achievement include an increase in customer base by 113%, increase in service excellence captured by an 82% decrease in customer complaints, and an increase in operational efficiency with retained earnings rising to 70% of turnover.

    “The success achieved by the Hotel has evidently proven both the diligent process of implementing the privatisation programme on one hand and the commitment and professionalism of the Management Team of the Hotel on the other,” he said, adding that “The approval is sequel to the review and analysis of the outcome of our routine performance evaluation earlier conducted on the Hotel, which clearly indicates that the achievements recorded by Transcorp Hotels are in line with all the covenanted obligations embedded in the Share Sale Purchase Agreement (SSPA)”.

    Recall that in 2005, Transcorp emerged the core investors in the privatisation of the hotel asset, which later became Transcorp Hotels Plc in 2014 following a decision to make this iconic asset available to the investing public as shareholders. The company later extended its reach to Calabar operating as Transcorp Hotels Calabar and further acquired strategic properties in Lagos and Port Harcourt where it intends to develop new hotels. In 2018, Transcorp Hotels completed a USD$100m upgrade of the iconic and multi-award winning Transcorp Hilton Abuja, which was a key factor that led to the final discharge of the company by the BPE from further post- privatisation obligations.

    Commenting on this, the Chairman, Transcorp, Mr. Tony O. Elumelu, CON, receiving the discharge certificate said “Our group is known for business turn around and value creation and I support public-private partnership as a viable option for catalysing our economic development. For public-private partnerships to work and become a viable approach for the transformation of our country, privatised entities and their owners must justify government’s confidence in them by visibly improving the acquired assets, create jobs, and increase government revenues. Such positive outcomes will encourage the government to privatise more national assets and free itself of revenue for critical social and infrastructure sectors such as education, healthcare, roads, transportation, etc.” He also commended this government for its efforts in driving economic development in Nigeria.

    Also speaking on the discharge, the MD/CEO of Transcorp Hotels Plc, Owen Omogiafo said, “This is a significant milestone in the history of our company and a further demonstration of our long-term commitment to improving lives and transforming our nation.

    The hotel recently won the prestigious World Travel Awards 2019 in five categories including Africa’s Leading Business Hotel and received the Signum Virtutis (Seal of Excellence) in the Hotels Sector for Nigeria at the 2019 Seven Stars Luxury Hospitality and Lifestyle Awards.

  • Transcorp Hotels Plc Retains Positive A- (NG) GCR Rating

    Transcorp Hotels Plc Retains Positive A- (NG) GCR Rating

    Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp) and owner of the iconic Transcorp Hilton Abuja and Transcorp Hotels Calabar, has retained its national scale ratings at A-(NG) and A2(NG) in the long term and short term respectively, with the outlook accorded as Stable. Concurrently, the national scale ratings accorded to the following Issuances were also affirmed:

    • Series 1 N10bn Fixed Rate Bond: A-(NG), Stable Outlook

    • Series 2 N9.8bn Fixed Rate Bond: A-(NG), Stable Outlook

    According to GCR, the rating reflects Transcorp Hotels ability to maintain its market position as a leading brand in Nigeria’s hospitality industry, supported by the major renovation and facilities upgrade at Transcorp Hilton Abuja (‘THA’) and the subsequent improvement in pricing and occupancy rate. The available support to Transcorp Hotels as a member of Transnational Corporation of Nigeria Plc (“Transcorp”), and the partnership with Hilton Worldwide Limited (“Hilton”) is considered a rating positive.

    In the report released in August of 2019, it stated “Following the upgrade at THA and the accompanying repricing of the hotel facilities in FY18, revenue improved across all service lines, with rooms and food and beverages rising 26% and 28% respectively. Per management, the Company is currently exploring other opportunities and add-on services that could be offered to boost overall earnings going forward. The average occupancy rate in 1Q FY19 stood at about 61%, albeit still well ahead of the industry average of 53%. Revenue from room lodging grew by a moderate 5% YoY in 1Q FY19, while food and other services rose 18% and 23% respectively. ”

    GCR in its report affirmed that Transcorp Hotels demonstrated a stable outlook in its businesses and the ability to maintain a positive rating in the longer term.

  • Shareholders laud Transcorp Hotels Plc for Impressive performance, approve 15k per share as dividend

    Shareholders laud Transcorp Hotels Plc for Impressive performance, approve 15k per share as dividend

    The Shareholders of Africa’s leading hospitality brand, Transcorp Hotels Plc, have extolled the Company for its impressive financial results for the year ended December 31, 2018.

    The congratulatory remarks were made at the Company’s 5th Annual General Meeting, which took place at the Congress Hall of the iconic Transcorp Hilton, Abuja.

    Following the company’s 26% increase in turnover, the Shareholders have unanimously endorsed a final dividend of ₦1.14bn for the 2018 financial year. The final dividend translated to 15kobo per ordinary share, which is a 20% improvement over the 12kobo per ordinary share for 2017.

    Speaking on the Company’s growth milestones, Chairman of the Board of Directors, Mr. Emmanuel N. Nnorom said “Transcorp Hotels Plc has exceeded the bar with an impressive turnover of ₦17.4billion from ₦13.8billion recorded in 2017, representing an improvement of 26%.

    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, Patrick Ajudua, President, New Dimension Shareholders Association said that Transcorp Hotels Plc is an embodiment of what privatisation in Nigeria should be. He further stated that 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. She said “We are redefining the hospitality landscape in Africa and positioning our continent as a preferred destination for local and international tourists. Our numerous awards and recognition are proof of this.”

    On the prospects for 2019, Mrs. Omogiafo noted that “Transcorp Hotels will continue to leverage on its unique value proposition and proven strategies to exceed 2018 performance.” She further said that growth and efficiency underpinned by a strong culture of service excellence and cost optimization will drive the company.