Transcorp Hotels: Maintaining growth momentum with 62% profit growth in Q3 2023
Transcorp Hotels PLC, the hospitality subsidiary of Transcorp Group has announced its financial performance for the third quarter of 2023, showing a strong year-on-year growth on all indices.
Transcorp Hotels Plc. is one of Africa’s leading hospitality companies, committed to redefining hospitality standards. Transcorp Hotels is the hospitality subsidiary of Transnational Corporation Plc (Transcorp). The Company’s hotels include the award-winning Transcorp Hilton Abuja and Transcorp Hotels Calabar. It also owns Aura by Transcorp Hotels, an online platform for booking homes, hotels and memorable lifestyle experiences.
The leading hospitality brand sustained strong growth, recording 31.76 percent growth in revenue to N29.9billion from N22.7billion the previous year, and significantly higher than pre-covid performance. Profit also grew by 62 percent to N5.5billion from N3.4billion. The results reflect the company’s commitment to delivering exceptional value to its stakeholders and sustaining its growth momentum.
Highlights of Q3 2023 results
The hospitality firm posted a revenue for the period ended September 30, 2023 at N29.9billion, compared to N22.7billion in September 30, 2022, signifying a 31.76 percent increase.
Profits also grew by 62 percent to N5.5bn, from N3.4bn by the end of September 2022 while Average Daily Rate (ADR) increased by 38% to N134,739 from N99,390 during the same period in 2022.
Impressively, revenue per Available Room (REVPAR) grew to N106,244 by the end of September 2023 from N77,428 at the end of September 2022, a 34 percent increase.
Aura by Transcorp as a game changer
One major product that has boosted the growth trajectory of Transcorp Hotels is the launch of Aura by Transcorp Hotels.
Aura by Transcorp Hotels is an online platform for booking homes, hotels, and experiences.
Since its launch, the company has been able to extend its services to about 30 states in Nigeria, holding over 5,000 rooms in ownership and management, across hotels and homes listed on Aura by Transcorp Hotels.
Future outlook
The growth trajectory appears positive with more projects coming on board to boost the company’s earnings.
Dupe Olusola had earlier announced plans of Transcorp Hotels to build a 5,000-seater capacity event centre in Abuja by the first quarter (Q1) of 2024.
The Hotel is also looking to build a five-star hotel in the upmarket Ikoyi neighbourhood of Lagos. Transcorp Hotels continues to maintain its strong leisure business, setting the pace with excellence in the delivery of both business and leisure offerings, as the importance of the Bleisure segment expands in the industry.
The decision, the CEO had noted earlier this year is part of the broad plan to sustain post-pandemic recovery after covid lockdowns tipped the hospitality firm into a brief but substantial loss in 2020.
The Hotel is also not giving room for any losses as the shareholders of Transcorp Hotels resolved at the company’s annual general management in April to sell off its 100 percent equity stake in Transcorp Hotels Calabar Limited, which has been racking up losses for at least the last two years.
The Company has continued to strengthen its business and invest for the future through strategic expansion.
Commenting on the results, Managing Director/CEO of Transcorp Hotels Plc, Dupe Olusola, said, “This consistent financial upswing reinforces our dedication to excellence and resilience in the face of economic challenges. We have remained nimble, adapting quickly to meet the dynamic preferences of our guests.”
According to Olusola, the Company continued to experience strong performance in its International Business Travel segment, as it took advantage of renewed investor confidence in the Nigerian economy as a new government resumed office.
