Transcorp Hotels Hits N42bn Revenue In 2023, Set To Spend $200m On New Lagos Hotel, N2b On Dividends
Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group has presented an impressive performance in revenue growth by 36.2% to N41.46 billion in 2023 from N30.44 billion in 2022 to the company’s shareholders with over N2b to be paid as dividends. The board have also earmarked $200 million for the construction of 315 rooms for Transcorp Hotels Ikoyi, Lagos.
This impressive record was made known yesterday at the 10th Annual General Meeting (AGM) held at Transcorp Hotel’s flagship property, Transcorp Hilton Abuja.
According to the company, the new hotel project is part of the company’s consolidation efforts in the year, aimed at enhancing Nigeria’s reputation as a prime destination for business and leisure travelers.
As contained in the Company’s annual report, revenue grew by 36.2% to N41.46 billion in 2023 from N30.44 billion in 2022, while gross profit grew 37% to N29.79 billion from N21.74 billion in 2022. Profit before tax grew by 104.8% to N9.48 billion from N4.63 billion in 2022.
Emmanuel Nnorom, Chairman, Board of Directors said, “Our exceptional performance in 2023 underscores our unwavering commitment to excellence and sustainable growth. Our strict adherence to corporate governance principles has been fundamental in guiding our strategic decisions. This impressive achievement and our confidence in continued business growth has consistently improved shareholder return.”
He announced that the Board of Directors has approved that over N2 billion be paid as dividend to the Company’s shareholders, an announcement that was welcomed with rousing applause and approval by the shareholders.
Speaking on the result, Dupe Olusola, Managing Director/CEO stated that 2023 was a year of exceeding performance as the Company leveraged increased demand to set new operational and financial records.
“By strategically investing in opportunities that align with our growth objectives, we have achieved impressive outcomes. Our business expansion has been propelled by reinforcing our capital base, enhancing operational efficiency, and exercising fiscal responsibility to foster sustainable growth and create value for all our stakeholders,” Dupe Olusola said, adding that the positive momentum created by the Company’s successful strategy offers confidence for its 2024 outlook and beyond.
She acknowledged the resilience and dedication of her team, stressing that the impressive performance reflects their commitment and hard work.
In addition, a longtime shareholder of the Company, Chief Olatunde Okelana expressed his excitement at the year-on-year growth and his confidence in the future growth of the Company.
“I have watched this Company grow in leaps and bounds over the years. Returns to shareholders is growing impressively every year, and we owe this to our experienced board and excellent management. I am excited about what the future holds for our Company,” Chief Okelana said.
Another shareholder Bisi Bakare, commended the management of Transcorp Hotels, stressing the importance of the company’s core values of Excellence, Execution and Enterprise. “The triple Es have been the bedrock of the business and has yielded profit.”
Speaking on the expansion project, Dupe Olusola said “We have acquired more land, bringing the total area to 14,000 square meters. This will be a world-class facility with a projected start date of 2027.”
She added that the company has concluded plans to launch its 5,000-capacity event centre in August which was described as the state-of-the-art event centre. The project is expected to save the country significant foreign exchange by hosting large-scale events that would have otherwise been taken to neighboring countries like Ghana, Egypt, and Morocco.
She said: “We are losing business to neighbouring countries like Ghana, Egypt, and Morocco. We want all businesses and events of similar size to come to Abuja.”
Dupe Olusola emphasised that the event centre will be a game-changer for Nigeria’s MICE (Meetings, Incentives, Conferences, and Exhibitions) industry, attracting large-scale events and conferences that will boost economic activity and create jobs.
With its launch in August, the event centre is poised to become a hub for business and social events, further cementing Transcorp Hotels’ commitment to Nigeria’s economic growth and development.