Transcorp Hotels profit increases by 143% as revenue hits N21.7 billion

Transcorp Hotels Plc has announced its audited financial statements for the full year ended December 31, 2021, showing 114 per cent growth in revenue to N21.74bn from N10.16bn as of December 2020, while gross profit rose by 143 per cent to N16.23 billion from N6.67 billion.

The results show improved performance, signaling the firm’s strong recovery from the impact of the COVID-19 pandemic in 2020, a statement said.

The performance also reflects the Company’s resilience and nimbleness, as it consistently leverages innovation to achieve outstanding performance, breaking occupancy and revenue records in 2021.

“We are very pleased with the incredibly strong operating performance of our businesses, as most segments improved in 2021. Our leisure demand remained strong throughout the year as different leisure packages introduced continue to drive occupancy,” said Managing Director/Chief Executive Officer of Transcorp Hotels, Dupe Olusola.

“We believe that Transcorp Hotels is well-positioned to continue to capitalise on the recovery in the hospitality industry as we work towards achieving our vision of becoming Africa’s leading hospitality brand. We are launching several projects that have been in the pipeline to further our play of being a full-service hospitality brand and diversify our portfolio.

“We are excited about the opportunities to deliver continued growth in 2022, as we remain focused on strengthening our business and investing for the future,” Olusola added.

Chairman of the company, Emmanuel Nnorom, in his comments, said he expected the hospitality industry to continue to recover in 2022.

“As the domestic leisure, business and the Bleisure segment — corporate travellers which also add leisure activities into their stay – continue to expand, even as international guests return, we expect the hospitality industry to continue its recovery,” Nnorom said, adding that Transcorp Hotels is in an advantageous position to drive the industry recovery.

“Having steered the business out of the effects of the pandemic, and back to profitability, our management team has shown the resilience and potential of our business, as well as a sign of the bright future that lies ahead.

Backed by a Board committed to corporate governance and organisational excellence, our esteemed shareholders can be reassured that we will continue to deliver value and strong returns,” he said.

The company has proposed a final dividend of seven kobo per share, subject to appropriate withholding tax and shareholders’ approval.