Transcorp Hotels grows revenue by 36 per cent, profit hits N29.8 billion

Transcorp Hotels grew its revenue to N41.5 billion in 2023 representing a 36 per cent increase from N31.4 billion posted in 2022.

The Managing Director of the hotel, Dupe Olusola, disclosed this in Abuja yesterday at the 10th yearly general meeting of the group, attributing the growth to the robust resurgence of the Nigerian economy and heightened business activities during the 2023 general elections.

The gross profit for Transcorp Hotels in the financial year 2023 reached N29.8 billion, signifying a notable 37 per cent upturn from the N21.7 billion generated in the previous year.

Also, the company recorded profit before tax performance of N9.5 billion in 2023 which is 105 per cent higher than the N4.6 billion in 2022.

Olusola said the strategic decision to divest the entire stake in Transcorp Hotels Calabar added a dynamic element to the asset portfolio of the company.

While declaring that the shareholders would take 20 kobo per share, Olusola disclosed that the hotel is investing about N10 billion in a 5,000-seater Transcorp event centre in Abuja and another Transcorp hotel in Ikoyi Lagos will bolster the revenue base of the company going forward.

On what to look forward to in 2024, Olusola said: “In charting our course for the year 2024, our primary focus revolves around strategically expanding our business. positioning it for not only immediate success but sustained and robust growth in the long term.

“A significant milestone in this trajectory is the upcoming inauguration of a state-of-the-art event centre at Transcorp Hilton Abuja in 2024. This development highlights our focus on delivering top-tier services to our valued customers.”

Chairman of the Board, Emmanuel Nnorom, said a total of N2.05 billion at 20 kobo per ordinary share was approved by the board as a final dividend.

While looking forward to what 2024 holds for the business community, Nnorom also stated that the share of the company rose by 1022.9 per cent from N6.25 in 2022 to N70.18 as of December 31, 2023, adding that “this impressive growth led to Transcorp hotels PLC, being the best-performing stock on the exchange.

“With a price-to-earnings (P/E) ratio of 228x and price-to-sales (P/S) ratio of 265x, Transcorp Hotels’ share price growth was significantly higher than the hospitality industry average movement of 4.4 per cent and the market average movement of 7.4 per cent.”