Why We’ll Continue Investing In Innovation- Transcorp Hotels CEO

Caption: From left, Non-Executive Directors, Alex Okoh, Peter Elumelu, Mrs. Owen Omogiafo, Managing Director/CEO, Mrs. Dupe Olusola; chairman, Emmanuel Nnorom;  Company Secretary, Mrs. Kofo Olokun-Olawoyin;  Independent Non-Executive Director, Mrs. Bolanle Onagoruwa; and  Non-Executive Director, Alexander Adeyemi at the AGM of Transcorp Hotels Plc held at Transcorp Hilton Hotel Abuja on Monday.

Shareholders of Transcorp Hotels Plc, on Monday at its 8th Annual General Meeting in Abuja approved the payment of N717m as total dividend, with the Managing Director/Chief Executive, Mrs. Dupe Olusola, expressed optimism about the continued impressive performance of the company despite the cautious stance across the industry.

She noted the company’s resolve to sustain investment in innovation as key focus, going into the future, because according to her, it “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 assured, noting that within the year under review, occupancy — proportion of hotel accommodation occupied — which started at 55% in January grew steadily to an all-time high of 80% in December 2021. Average Daily Rate (ADR) also grew from N69,000 in January 2021 to N83,000 in December 2021. 

“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,” Olusola added.

Reiterating the chairman’s statement on revenue, the Managing Director/CEO said the “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,” the CEO added. 

Welcoming all to the meeting earlier, the chairman, Emmanuel Nnorom, said the company closed the 2021 financial year strong, due to the “disciplined approach to financial management.”

This, he said, 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.” 

According to him, “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.”

Also commenting on the results, Mrs. Oluwatobiloba Ojediran, Chief Finance Officer of Transcorp Hotels Plc stressed that the company has continued its impressive performance despite the economic headwinds.

“Gross profit grew 143 percent to N16.23 billion for the year ended December 31, 2021, as against N6.67 billion reported in 2020. We also recorded a 114 percent growth in revenue to N21.74 billion from N10.16 billion in 2020,” Mrs Ojediran said.

The Nigerian Exchange Group (NGX) listed hospitality giant, according to a statement, continues to set the pace in the industry, reinforcing its position as a leading hospitality brand. In the second half of 2021, the Company launched Aura by Transcorp Hotels, an online booking platform that allows people to book accommodation (hotels and apartments), order food and book diverse kinds of experiences, including tours. Transcorp Hotels has continued to strengthen its business and invest for the future. The Company is developing a world-class event center at the Transcorp Hilton premises in Abuja. It is also working on a Lifestyle Center/Hotel in Lagos, one expected to rival the best of its kind globally, even as it upgrades its property in Calabar to maintain the hospitality standards the brand is known for.