Transcorp Hotels Plc, the largest firm in the hospitality industry by market capitalization in Nigeria, is positioned to benefit from the projected hotel industry’s revenue in Africa, expected to reach $13.80 billion (N10.3 trillion at N750/$) by 2027, with an average Annual Growth Rate of 8.68 per cent over the next five years.
The hospitality giant posted a net loss of $19 million in 2020 from a profit of $2.30 million in 2019, while sales dipped by 100 per cent to $21.50 million in the same period. The foundering performance was brought on by the inevitable coronavirus pandemic that hit the hospitality industry as a lockdown policy was imposed by the government to curb the spread of the disease.
The company was out of the woods in 2021 when it posted a profit of $2.30 million while revenue surged by 117.20 per cent to $46.70 million in the period under revenue.
Things got better given the gradual return to normalcy as profit surged by 169.44 per cent to $9.70 million in 2022.
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Transcorp Hotels’ shares have gained 241.59 per cent since the start of the year as it is among the top 10 best performers on the NGXASI index, and a price to earnings multiples of 105.33v means investors are willing to pay N105 for every naira of the company’s earnings.
Facts behind the numbers
Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, navigated the hospitality business away from so many challenges such as the coronavirus pandemic and made it a leading brand.
One of Olusola’s notable achievements is the launch of Aura by Transcorp Hotels, the company’s digital platform that provides customers with a seamless and personalised experience.
The platform has received positive reviews from customers and industry experts alike and has helped to position Transcorp Hotels as a leader in digital innovation in the hospitality sector.
The brand is developing a 5,000-capacity convention centre in Abuja, to be opened in Q1 2024. Preliminary works are also ongoing for a 300-room 5-Star hotel in the heart of Lagos (Transcorp Hilton Ikoyi).
With Aura, the online platform for booking homes, hotels and experiences, Transcorp Hotels Plc has fast-tracked its expansion plans with hotels and apartments from all parts of Nigeria now listed on the platform, and Transcorp now boasts over 5,000 rooms under management through the platform.
International business travels, meetings and conferences are also expected to increase, especially with the investment-friendly outlook of the new leadership in Nigeria. With its 677 rooms and 5,000-capacity convention centre in Abuja, Transcorp is ready to benefit from the opportunities being created. Discerning investors are positioned to be part of this imminent growth.