…plans expansion in Abuja, Ikoyi facilities
Transcorp Hotels Plc has announced a total dividend payout of 74 kobo per share for the 2024 financial year, a reflection of the company’s impressive financial performance.
The payout, which totals N7.57 billion, includes a final dividend of 64 kobo per share, following an interim dividend of 10 kobo per share paid earlier in the year.
The dividend was approved by shareholders at the company’s 11th Annual General Meeting (AGM) in Abuja on Thursday.
Emmanuel Nnorom, Chairman, Transcorp Hotels told the shareholders that the company demonstrated exceptional growth in 2024, despite the challenging economic environment.
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The company posted a remarkable 69% increase in revenue, with gross revenue climbing to N70.13 billion from N41.46 billion in 2023.
Nnorom attributed the growth to strategic pricing models, effective cost management, and an unwavering commitment to enhancing guest experiences.
“Our performance in 2024 has been nothing short of stellar,” Nnorom said.
“The company’s ability to adapt and capitalize on market opportunities, even amidst persistent inflation and volatile exchange rates, speaks volumes about the strength of our operational strategies.”
Profit Before Tax (PBT) soared by 138%, reaching N22.61 billion, further underscoring the company’s strong financial position.
Additionally, Transcorp Hotel’s stock price surged by 65%, closing the year at N116 per share. The price jump positions it as one of the most attractive stocks on the Nigerian Stock Exchange (NGX).
Key to the company’s success was its investment in upgrading facilities and enhancing service delivery. Notably, it made significant improvements to guest services and culinary offerings, elevating its brand’s stature.
These investments, Nnorom said, paid off, as the hotel clinched the top spot on TripAdvisor for guest satisfaction and value for money starting in July 2024.
The Zuma Restaurant at Transcorp Hilton Abuja also earned accolades, winning the World Culinary Awards as Nigeria’s Best Hotel Restaurant for 2024.
Looking ahead, the company is focused on expanding its footprint and delivering sustained growth in 2025. “Our strategy for 2025 focuses on scaling innovation, deepening customer engagement, and reinforcing our leadership in Nigeria’s hospitality sector,” Nnorom explained.
Transcorp hotel is also ramping up its investment in key projects, including the 5,000 capacity events centre in Abuja – which has already opened, and the Ikoyi Hotel project, which are expected to bolster its competitive edge.
The company’s strong occupancy rates—averaging 84% across its 670 rooms—reflect its growing appeal. Nnorom mentioned that the company was also planning to expand its room inventory in the near future, with specific details to be revealed in due course.
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“As we navigate macroeconomic trends and challenges, including currency fluctuations and rising energy costs, we remain focused on delivering exceptional value to our stakeholders,” Nnorom stated.
Uzoamaka Oshogwe, Managing Director/CEO of the company said revenue growth was fueled by sustained demand in international and corporate travel, a strong rebound in the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector, and a dynamic performance in the leisure market.
Gross profit reached N49.72 billion, representing a 67% increase from the N29.79 billion recorded in the
previous year.
“This significant growth is particularly commendable given the persistent macroeconomic headwinds,” Oshogwe said.
“Our ability to navigate these challenges and achieve such robust results underscores the effectiveness of our business model and strategic approach.”
Transcorp Hotels also saw a solid increase in total assets, which rose by 12% to N140.70 billion, compared to N126.09 billion in 2023.
The company’s asset base remains strong, with property, plant, and equipment (PPE) accounting for 84% of total assets, reflecting its focus on strategic investments and asset optimization.
In terms of financial structure, the company maintained a balanced approach to liabilities.
As of December 31, 2024, the company’s total liabilities stood at N60.18 billion, with 73% consisting of non-interest-bearing liabilities (NIBL) and 27% from interest-bearing liabilities (IBL).
This mix highlights the company’s prudent financial strategy, ensuring optimal leverage while maintaining financial resilience in a dynamic market environment.
Oshogwe reassured shareholders of the company’s commitment to financial discipline, emphasizing the firm’s strategic approach to debt management.
“We have maintained a prudent debt management framework, leveraging both short-term and long-term financing to sustain liquidity and support expansion,” she said.
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Looking ahead, the company plans to continue optimizing its capital structure and driving operational efficiencies.
“Our focus remains on maximizing value creation, expanding revenue streams, and further strengthening our operational efficiencies to ensure continued success in the ever-evolving hospitality industry,” she concluded.
