Transcorp Hotels Records Turnaround, Q3 2021 Profit Up 662%

Transcorp Hotels Plc, owner of the Transcorp Hilton Abuja, Transcorp Hotels Calabar and Aura by Transcorp Hotels, recently presented its unaudited nine-month results showing 115% year-on-year revenue growth to N14.6bn, from N6.8bn in 2020.

Gross profit for the period improved by 149% from $.3bn to N10.8bn; even as operating expenses recorded a 31% increase from N6bn to N7.9bn; as interest cost also dropped by 31% to N3.1tr from N4.5bn.

Profit before tax, therefore soared to N745m or 662% compared to a loss of N5.6bn in the first nine months of 2020.

On the balance sheet, Total assets increased by 2.18% from N115.3 billion in December 2020 to N112.9 billion in Q3 2021 due to the increase in Trade Receivables and Cash and Cash Equivalents precipitated by the improvement in business activities within the period.

Total liabilities, on the other hand, increased by 3.31% from N53.5 billion in December 2020 to N51.8 billion in Q3 2021, due to the growth in trade payables arising from the improved business activities within the period. Shareholders Fund therefore inched by 1.12% to N61.84 billion year-to-date, relative to FY 2020’s value at N61.10 billion.

Commenting on the results, Dupe Olusola, the Managing Director/Chief Executive said the “performance reflects the strength of our business to withstand external shocks and continue to grow revenue even in tough economic conditions.

“Demand has continued to improve at impressive levels during the year, accelerating in the third quarter to pre-pandemic levels. We ended September with 63 percent occupancy, growing from 28 percent achieved in the same period last year, as we continue to outperform the industry average on several indices.

“We are seeing significant improvement in our corporate and group bookings, as vaccination rates increase, and companies begin to return to full operations.. Domestic leisure demand remains very strong and continues to be responsible for the improvement seen on our revenue and this signifies our nimbleness and strength of purpose to redefine hospitality in Africa,” she added.

The company, she continued, remains “focused on the execution of our growth strategy, leveraging technology and the expertise of our people to deliver best-in-class guest experience across all our assets, properties and touchpoints.

“Recently, we launched Aura by Transcorp Hotels, a digital platform for booking accommodation, food and experiences. Aura caters to the three major things people need when they travel; where to stay, what to eat and things to do to make their travel memorable. This business, which stems from our asset-light strategy offers us a great opportunity for expansion in line with our long-term plans to expand across Africa.

“As the global economy continues to recover from the impact of the COVID-19 pandemic, Transcorp Hotels Plc. will remain a leader in the industry, offering bespoke hospitality services to discerning guests, who live for memorable experiences and excellent service delivery,” the CEO stressed further.