Transcorp Hotels targets expansion across Nigeria, African countries

Transcorp Hotels Plc has said that the hospitality group is aiming to expand its operational footprints across the country and other African countries.

The Managing Director/Chief Executive Officer of Transcorp Hotels, Dupe Olusola, disclosed this during an investor call on Friday.

This disclosure comes after the company informed investors via a corporate filing on the Nigerian Exchange Limited that it had divested its 100% stake in Transcorp Hotels Calabar Limited to Eco Travels and Tours, an indigenous hospitality firm.

Olusola said the focus for the company going forward is expansion, ensuring that it could achieve more footprints in the hospitality business not only in Abuja but across the entirety of Nigeria and then transition to Africa.

The company targets

She noted that the company targets conversion of the existing warehouse in Transcorp Hilton Abuja to a 3,000 – 5,000 capacity Event/Lifestyle Centre.

Olusola explained that the event center, which is estimated to be delivered this year, aims to cater to the event needs of existing clientele of Transcorp as well as the general public.

She said the company also targets to complete a 315-key 5-star hotel with features of relaxation and lifestyle center, located in the heart of Ikoyi, Lagos by 2027.

The project, according to her, would consist of a garden space for recreation and events, a spa/gym, a co-working space, a café, a 5-star restaurant, retail outlets, and a UBA experience center.

• “We are very confident that this would encourage and attract further business that goes outside of Nigeria to us. We are also excited to be talking about the development of a new five-star hotel in Ikoyi, Lagos.”
• On the key drivers of its performance, the MD said, “To ensure our performance, we will focus on key growth drivers to ensure that we are continuously well-placed to take advantage of the changing industry and economy as well. The enhanced use of our digital platform, Aura, ensures that we can revolutonise how we drive bookings, engage with our guests, and drive revenue.
• “Also important is the need to upgrade our technology and enrich our guest experience. We are dedicated to optimising our operational costs without losing quality. We are confident and optimistic that we will maintain our performance through 2024 and beyond.”

Financial performance

Meanwhile, the Chief Financial Officer of Transcorp Hotels, Oluwatobiloba Ojerinde, in her presentation, shared the financial results of the company in the year ended December 2023 and the drivers of the performance.

Ojerinde said the company recorded a gross profit growth of about 72% in 2023. Also, it recorded an increase of 24% in operating expenses from N13.9 billion in 2022 to N17.3 billion in 2023, attributed to improved operating activities.

• “At this point, it is worth noting that we experienced an increase in our income-to-cost ratio which reduced from 91% to 85% in 2023 which reflects our emphasis on operational efficiency at the company which has enabled us to deploy several cost-saving strategies despite inflation and the naira devaluation that is affecting our operations.
• “In terms of revenue, we positioned ourselves to take advantage of the resurgence in the economy, increased business activities, and the political season. This drove revenue across our business lines. Also, we leveraged from the learnings from the COVID era and continued to diversify,” she said.