Transcorp Hotels’ profit hits N16.23bn, pays N717m dividend

Transcorp Hotels Plc has paid a total dividend of N717 million to its shareholders at its 8th Annual General Meeting held at Transcorp Hilton Abuja on Monday.

The company’s gross profit grew by 143 per cent to N16.23 billion for the year ended December 31, 2021, as against N6.67 billion reported in 2020.

The Chairman of the Board of Directors, Mr. Emmanuel Nnorom, stated that the company closed the 2021 financial year strongly, with an impressive gross revenue of N22 billion, 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.

“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 N10 billion revenue recorded in 2020,” Nnorom said.

In her remarks, Managing Director/CEO Transcorp Hotels Plc. Mrs. Dupe Olusola, noted that occupancy – proportion of hotel accommodation occupied – which started at 55% in January grew steadily to an all-time high of 80% in December 2021. 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,” Mrs. Olusola added.

The Managing Director/CEO noted that the company closed 2021 with an impressive gross revenue of N22 billion.

“This great progress reflects the growth achieved in most of our business segments and the strengthening of our 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% from N1.7 billion in 2020 to N3.7 billion at the end of 2021,” Olusola said.

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

Also commenting on the results, Mrs. Oluwatobiloba Ojediran, Chief Finance Officer of Transcorp Hotels Plc 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.

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 of Nigeria (Transcorp). The company’s hotels include the award-winning Transcorp Hilton Abuja and Transcorp Hotels Calabar.

The Star