Transcorp Hotels FY21 profit rises 143% to N16.23bn

From left: Company Secretary, Mrs. Kofo Olokun-Olawoyin; Non-Executive Director, Alex Okoh; Non-Executive Director, Mrs. Owen Omogiafo; Chairman, Emmanuel Nnorom; Managing Director/CEO Mrs. Dupe Olusola; Non-Executive Director, Alexander Adeyemi; Independent Non-Executive Director, Mrs. Bolanle Onagoruwa; and Non-Executive Director, Peter Elumelu, at the AGM.

. Pays N717 million dividend to shareholders

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

The Chairman, Board of Directors, Emmanuel Nnorom, said the Hotel closed the 2021 financial year strongly, with an impressive gross revenue of N22billion, surpassing its 2019’s pre-COVID revenue of N20billion. 

“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. 

“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 N10billion revenue recorded in 2020,” the Chairman added. 

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,” she added.

Reiterating the Chairman’s statement on revenue, Olusola noted that the Hotel closed 2021 with an impressive gross revenue of N22billion.

“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 N1.7b in 2020 to N3.7b at the end of 2021,” Olusola said. 

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.

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

“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,” Olusola stressed.

Also commenting on the results, Chief Finance Officer, Transcorp Hotels, Mrs. Oluwatobiloba Ojediran, stressed that the hospitality company has continued its impressive performance despite the economic headwinds.

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

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.

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.

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