Transcorp Hotels Plc Makes N16.23bn Profit, Doubles Revenue To N21.7bn

• Ends 2021 as the Best-Performing hospitality brand in Nigeria
• Announces N717m dividend at 8th AGM with gross profit up by 143%

BY EDMOND ODOK, ABUJA – Basking in the euphoria of making a gross profit of over 143 per cent, Transcorp Hotels Plc has paid N717 million as total dividend to its shareholders for the 2021 financial year.

This is as the Chairman, Board of Directors, Mr. Emmanuel Nnorom disclosed that the Company closed the financial year strongly, flaunting an impressive gross revenue of N22 billion to surpass its 2019’s pre-COVID revenue of N20 billion.

Speaking at its 8th Annual General Meeting (AGM) held at Transcorp Hilton Abuja on Monday, Nnorom said; “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”

According to him; “The pandemic changed the customer behaviour, arrival and departure patterns and the geographical business mix of the hotel. We harnessed all these and dominated the market as we outperformed the industry average and the N10bn revenue recorded in 2020.”

In her remarks at the occasion, Managing Director and Chief Executive Officer, Transcorp Hotels Plc. Mrs. Dupe Olusola said occupancy, proportion of hotel accommodation occupied, that started at 55 per cent in January grew steadily to an all-time high of 80 per cent in December 2021.

Similarly, the Average Daily Rate (ADR) also grew from N69,000 in January 2021 to N83,000 in December 2021.

A statement on the AGM by Niyi Aderibigbe, Head of Marketing and Corporate Communications, Transcorp Hotels Plc, also quoted Mrs Olusola as saying; “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.”

Adding her voice to the Chairman’s remarks on revenue, Mrs Olusola said the Company closed the year 2021 with an impressive gross revenue of N22 billion, noting that; “This great progress reflects the growth achieved in most of our business segments and the strengthening of our leisure business.

For her; “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.”

She expressed optimism about the continued impressive performance of the Company despite the cautious stance from the industry, adding; “Our key focus will be a continued investment in innovation that allows us 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.”

Also commenting on the results, Chief Finance Officer of Transcorp Hotels Plc, Mrs Oluwatobiloba Ojediran, said the company has maintained its impressive performance despite the economic headwinds.

“Gross profit grew 143 percent to N16.23 billion for the year ended December 31, 2021, as against N6.67 billion reported in 2020. We also recorded a 114 percent growth in revenue to N21.74 billion from N10.16 billion in 2020,” Mrs Ojediran said.

On his part, a shareholder, Chief Olatunde Okelana, who described Transcorp Hotels Plc’s flagship hotel, Transcorp Hilton Abuja as the safest and most serene in Abuja, said one of the secrets to the success of Transcorp Hotels Plc is inclusiveness.

He said the Board’s composition with about 50 per cent of female Board members is a testimony of the positive effect of its all-inclusive agenda.