Transcorp Hotels PAT surges 843.7% in Q1’24

Transcorp Hotels, a leading hospitality company in Nigeria, has reported a remarkable surge in its Profit After Tax by 843.7 per cent in the first quarter of 2024, reaching 5 billion naira. The company's Chief Executive Officer, Modupe Olusola, shared the exciting news during a recent interview on CNBC Africa. The surge in earnings has been attributed to the exceptional financial performance of the company in the previous year. In 2023, Transcorp Hotels achieved record revenue of 41.5 billion naira, with a Profit Before Tax of over 9 billion naira, marking a 36 per cent increase in revenue and a remarkable 105 per cent increase in Profit Before Tax. This outstanding performance has been met with enthusiasm from shareholders, evident in the 54 per cent increase in dividends per share paid out compared to the previous year. The company's success has also translated into significant growth in its stock price, with over a 1,000 per cent increase in price appreciation and a market capitalization surpassing 1 trillion naira, making it a stellar year for Transcorp Hotels. Looking ahead, Modupe Olusola discussed the company's expansion plans, particularly the development of a 5,000-capacity event centre in Ikoi Lagos, set to be launched in the third quarter of 2024. With a focus on top-notch infrastructure and services, the event center aims to enhance the overall guest experience and attract a diverse range of events, both local and international, to Nigeria. The company has also acquired additional land for expansion, allowing for the development of a 315-room hotel with state-of-the-art banquet facilities, health and lifestyle amenities, ample parking space, and more, further solidifying its position as a leading hospitality brand in the country. To finance these ambitious projects, Transcorp Hotels is looking at a capital outlay of upwards of 300 million dollars, with a strong belief in their ability to secure funding successfully. Modupe Olusola emphasized the company's commitment to cost efficiency and optimization as a key strategy for maintaining profitability amidst challenges such as higher interest rates and inflation. By continuously seeking ways to reduce energy costs, enhance water efficiency, and promote the use of local products, Transcorp Hotels aims to ensure sustainable growth and deliver value to its shareholders and stakeholders. The optimism surrounding the company's future prospects is also buoyed by the positive steps taken by the Tinnenberg administration in Nigeria, with strong and bold economic policies setting the country on the right path for sustained growth. As the hospitality sector continues to adapt and innovate in response to evolving market conditions, Transcorp Hotels remains poised for further success and expansion, driven by a commitment to excellence and a focus on delivering exceptional service standards.