Transcorp Hotels gross profit soars by 143% to N16.23bn in FY 2021

Transcorp Hotels gross profit soars by 143% to N16.23bn in FY 2021
L-R: Non-Executive Director, Mr. Alex Okoh; Non-Executive Director, Hon. Peter Elumelu; Non-Executive Director, Mrs. Owen Omogiafo; Managing Director/CEO, Mrs. Dupe Olusola; Chairman, Mr. Emmanuel Nnorom; Company Secretary, Mrs. Kofo Olokun-Olawoyin; Independent Non-Executive Director, Mrs. Bolanle Onagoruwa; and Non-Executive Director, Mr. Alexander Adeyemi at the 8th Annual General Meeting of Transcorp Hotels Plc held at Transcorp Hilton Hotel Abuja on Monday
  • To pay N717 million dividend at the 8th AGM

 

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

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 N22bn, surpassing its 2019’s pre-COVID revenue of N20bn.

“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,” Mr. 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 N10bn 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,” Mrs. Olusola added.

Reiterating the Chairman’s statement on revenue, the Managing Director/CEO noted that the Company closed the year 2021 with an impressive gross revenue of N22bn.

“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,” Mrs. Olusola said.

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,” Mrs. Olusola stressed.

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

In his comments, a shareholder Chief Olatunde Okelana, while noting that Transcorp Hotels Plc’s flagship hotel Transcorp Hilton Abuja is the safest and most serene in Abuja, also added that one of the secrets to the success of Transcorp Hotels Plc is inclusiveness. “Look at the composition of the Board,” he stressed, highlighting that 50% of the Board members are women.

Transcorp has continued to set the pace in the industry, reinforcing its position as a leading hospitality brand. 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.