Transcorp Hotels to tap into $107bn luxury hotel market with Ikoyi 5-star hotel

• Reports record 36.2% revenue growth to N42bn revenue in 2023

Onome Amuge

Transcorp Hotels is solidifying its presence as a major player in the luxury hospitality industry by expanding its portfolio with a 315-room, 5-star hotel in the heart of Ikoyi, Lagos. This venture aligns with the company’s strategy to capitalise on the growing global luxury hotel market, which is projected to experience significant growth from $107.77 billion in 2024 to $157.59 billion by 2029.

The hospitality subsidiary of one of Africa’s leading, listed companies, Transnational Corporation Plc, revealed its forthcoming developments at its 10th annual general meeting (AGM), held at Transcorp Hotel’s flagship property Transcorp Hilton Abuja, where the company’s impressive 2023 performance was presented to shareholders. 

The results showed Transcorp Hotels’s continuous growth, as well as new revenue and profit records set in the year under review. As contained in the company’s annual report, revenue grew by 36.2 per cent to N41.46 billion in 2023 from N30.44 billion in 2022, while gross profit grew 37 per cent to N29.79 billion from N21.74 billion in 2022. Profit before tax grew by 104.8 per cent to N9.48 billion from N4.63 billion in 2022.

Emmanuel Nnorom, chairman, board of directors remarked that the company’s exceptional performance in 2023 underscores its unwavering commitment to excellence and sustainable growth. He noted further that the company’s strict adherence to corporate governance principles has been fundamental in guiding its strategic decisions. 

“This impressive achievement and our confidence in continued business growth has consistently improved shareholder return,” he said.

Nnorom  also announced that the board of directors has approved that over N2 billion be paid as dividend to the company’s shareholders, an announcement that was welcomed with rousing applause and approval by the shareholders.

Dupe Olusola, managing director/CEO stated that 2023 was a year of exceeding performance as the company leveraged increased demand to set new operational and financial records. 

“By strategically investing in opportunities that align with our growth objectives, we have achieved impressive outcomes. Our business expansion has been propelled by reinforcing our capital base, enhancing operational efficiency, and exercising fiscal responsibility to foster sustainable growth and create value for all our stakeholders,”  Olusola said. 

The managing director added that the positive momentum created by the company’s successful strategy offers confidence for its 2024 outlook and beyond. She also acknowledged the resilience and dedication of her team, stressing that the impressive performance reflects their commitment and hard work.

Olatunde Okelana, a longtime shareholder of the company expressed his excitement at the year-on-year growth and his confidence in the future growth of the company.

 “I have watched this Company grow in leaps and bounds over the years. Returns to shareholders is growing impressively every year, and we owe this to our experienced board and excellent management. I am excited about what the future holds for our Company,” Okelana said.

Another shareholder, Bisi Bakare, commended the management of Transcorp Hotels, stressing the importance of the company’s core values of excellence, execution and enterprise. “The triple Es have been the bedrock of the business and has yielded profit,” Bakare added.