Transcorp Hotels Plc on Monday reported that its gross profit rose by 143% to N16.23 billion even as the revenue grew to N21.7 billion in the 2021 financial year.
The hospitality company’s Chairman of the Board of Directors, Mr. Emmanuel Nnorom, while giving these figures at the 8th Annual General Meeting (AGM) in Abuja, also announced N717 million dividend for its shareholders.
Nnorom stated that the company closed the 2021 financial year strongly, with an impressive gross revenue of N22 billion, surpassing its 2019’s pre-COVID revenue of N20 billion by about N2 billion.
He explained: “Our disciplined approach to financial management has continued to yield results as reflected in reduced finance cost during the year. During the year, Transcorp Hotels maintained its credit rating for the Company and the Bonds, as two prominent rating agencies affirmed the Company’s “Stable” outlook.
“The pandemic changed the customer behaviour, arrival and departure patterns and the geographical business mix of the hotel. We harnessed all these and dominated the market as we outperformed the industry average and the N10bn revenue recorded in 2020,” the chairman added.
In her remarks, the company’s Managing Director/CEO, Mrs. Dupe Olusola disclosed that occupancy, which is the proportion of hotel accommodation occupied that started at 55% in January grew steadily to an all-time high of 80% in December 2021 while Average Daily Rate (ADR) also grew from N69,000 in January 2021 to N83,000 in December 2021.
She enthused: “We remained the superior choice for all, including numerous world leaders and dignitaries from around the world who we hosted in 2021. We continued to reinforce our position as the all-round industry leader with an increased focus on delivering excellent service quality, customer satisfaction and security.
“This great progress reflects the growth achieved in most of our business segments and the strengthening of our leisure business. We became more innovative in our leisure business segment as a response to the COVID-19 pandemic which was a key success factor for us in 2020.
“We pushed further in 2021 and grew revenues from this segment by 118% from N1.7b in 2020 to N3.7b at the end of 2021,” Olusola added.
On the company’s future plans, the Managing Director said: “Our key focus will be a continued investment in innovation that allows us to be dynamic and agile whilst delivering superior offerings and service to all our guests.
“We will continue to innovate and optimise all the facets of our business, from operational efficiency to guest engagement, and bolstering direct revenue. The good cost-saving habits and financial strengths that we cultivated during nearly two years of volatile market conditions will be enhanced”, she added.
In his comments, a shareholder, Chief Olatunde Okelana, noted that Transcorp Hotels Plc’s flagship hotel, Transcorp Hilton Abuja, remained the safest and most serene in the FCT.
Okelana said that one of the secrets to the success of Transcorp Hotels Plc remained the gender inclusiveness in the board members, which reflected that 50% were women.
