Transcorp Hotels Plc, a subsidiary of Transnational Corporation Plc, says it plans to expedite the commencement of its planned developments in Lagos and Port Harcourt, amid surging demand for its services.
This the company said is in addition to expanding its reach via the online booking platform, aura by Transcorp Hotels, which allows people to book hotels, short-let apartments, experiences, and order food anywhere in Nigeria, in addition to developing a world-class event center at the Transcorp Hilton, Abuja.
In a statement following the release of its scorecard for the first quarter has ended March 31, 2022, showing a 77.4% growth in revenue to N7.04bn, from N3.97bn in the same period in 2021.
The hospitality company which owns the iconic Transcorp Hilton Abuja, Transcorp Hotels Calabar and online booking platform aura by Transcorp Hotels, also recorded over 600% growth in profit before tax (PBT) to N1.067 billion, from a loss of N203.7 million in the same period last year, according to the result published on the Nigerian Exchange Exchange Limited portal.
Commenting on the results, Mrs Dupe Olusola, Managing Director/Chief Executive Officer of the company, expressed confidence in Transcorp Holtel’s ability to sustain its growth trajectory.
“Our first quarter performance was driven by our relentless innovation in all facets of our business, creating new and tailored business and leisure offerings, while consistently improving guest experience to ensure maximum value for every spend.
“This has seen us record continuous growth from January through March. Our leisure business remains strong on the back of strategies employed following the pandemic, even as our International Business Travellers continue to show impressive recovery. Q1 ended with a RevPAR growth of 74.4% when compared with Q1 2021, and an ADR growth of 19.1%, even as we continue to outperform industry average,” Olusola said.
Continuing, she assured that in the coming months, “we expect to continue to see improvements through the second quarter, as we remain committed to delivering exceptional services and increase access to luxurious hospitality, in keeping with our mission of redefining hospitality in Africa. Also, as COVID-19 restrictions continue to reduce, we expect business travel to accelerate which would further supplement the buoyant leisure business.”
Also reacting, the Chief Finance Officer, Mrs. Oluwatobiloba Ojediran, highlighted the outstanding performance of the company, stressing that the group was able to strategically contain costs of operation to achieve the optimal results.
“A notable level of operational efficiency was witnessed during the quarter, as the operating expense margin reduced from 58% in Q1 2021 to 45% Q1 2022, despite the impressive 77% year-on-year growth in Revenue. Also, the Gross profit margin was sustained at 73%,” Ojediran said.
“This is amidst Nigeria’s inflation rate which climbed to 15.92% in March 2022, from 15.6% in December 2021, the fastest rise in consumer prices since last October 2021. Also, prices of diesel, which is used to power most businesses, more than doubled within the same period,” she stressed.