Transcorp Hotels Plc recently released its financial performance for the third quarter (Q3) ended September 30, 2023, showing a strong year-on-year (YoY) growth on all indices.

Transcorp Hotels which is the hospitality subsidiary of Transcorp Group delivered impressive Q3 financial performance, sustaining growth momentum with 62percent profit growth.

Also, the leading hospitality brand sustained strong growth, recording 31.76percent growth in revenue to N29.9billion from N22.7billion the previous year, and significantly higher than pre-covid performance.

Its Q3’2023 profit also grew by 62percent 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.

Transcorp Hotels revenue for the period ended September 30, 2023 was N29.9billion, signifying a 31.76percent increase from N22.7billion in September 30, 2022. Profit grew by 62percent to N5.5billion, from N3.4billion by the end of September 2022.

Average Daily Rate (ADR) increased by 38percent to N134,739 from N99,390 during the same period in 2022. 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 34percent increase.

Transcorp Hotels also 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 leisure segment expands in the industry.

Management’s view on the Q3 results?

“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,” said Dupe Olusola, Managing Director/CEO of Transcorp Hotels Plc.

Olusola said Transcorp Hotels Plc 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.

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.

Transcorp Hotels plans to commission a 5,000-seater capacity event centre in Abuja by the first quarter (Q1) of 2024. Transcorp Hotels Plc also plans to build a five-star hotel in the upmarket Ikoyi neighbourhood of Lagos.

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 facility is planned as a 300-room hotel towering 20 storeys alongside a 21-storeyed office block, with construction cost estimated at $110 million.

“We are expanding to Lagos, Ikoyi Glover and this is going to be phenomenal, a five-star hotel that offers accommodation, event space, restaurant, health & fitness, everything,” she had said.

Note that 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.

Transcorp Hotels closed at N44.40 per share as at Wednesday October 25. This year, the stock has outperformed the Nigerian Exchange Limited (NGX) All Share Index (ASI).

Transcorp Hotels has risen this year by 610.4percent while NGX ASI has risen by 31.13 percent this year. The share price had reached a 52-week high of N53 and a 52-week low of N6.05.

Transcorp Hotels recently achieved compliance with Nigerian Exchange Limited (NGX) free float requirement for companies listed on its Main Board. As at September 21, 2023, Transcorp Hotel’s free float stood at 12.78percent with a value (then market capitalisation) of N58.788billion. Transcorp Hotels has also committed to remaining compliant with its post listing obligations, while consistently delivering value to its investors and stakeholders.

At its ninth annual general meeting held in April, the Board of Directors of Transcorp Hotels got shareholders’ approval to pay dividend of 13kobo per ordinary share of 50kobo to shareholders whose names appeared in the company’s register of members as at the close of business on March 17, 2023.