Transcorp Hotel Plc is preparing to open Abuja’s largest banquet center, which can accommodate more than 5,000 people in seats. The hotel’s management stated that the new center is set to take the lead as the premier location for numerous important events.
“This cutting-edge venue is thoughtfully planned to enthrall and accommodate a variety of events, from conferences and concerts to trade shows, fashion shows, and more,” Transcorp Plc’s managing director and CEO, Dupe Olusola, informed the company’s shareholders yesterday during its 2023 annual general meeting in Abuja. Its creation attempts to address the ongoing issue that Abuja has, which is the scarcity of large-capacity venues, which frequently forces event planners to move their events to neighboring cities, such as Lagos. It is anticipated that the N10 billion facility will be finished by August 2024.
Additionally, Emmanuel Nnorom, the company’s chairman of the board of directors, revealed that work has started on a 315-room Transcorp Hotel in Ikoyi, Lagos, and that the project will redefine luxury in the hospitality industry.
According to Olusola, the establishment will set a new benchmark for refinement and convenience with its amazing inventory of 315 expertly designed rooms and state-of-the-art meeting facilities. “This expansion initiative is a reflection of our proactive and forward-thinking approach to meeting the changing needs of the market,” the spokesperson said.
Olusola claimed that because Nigeria lacks a sizable conference room, it is currently losing out on significant business and cash to its neighbors, Ghana, Egypt, and Morocco. He said, “We want all businesses and events of that nature to come to Abuja because it guarantees that we can hire more people and even provide so much more in terms of value to all our important stakeholders.”
In the meantime, the company’s shareholders have approved the final dividend payment of N2 billion, or 20 kobo per common share, for the year ending in 2023.
Transcorp Hotels Pic recorded a N29.8 billion gross profit in the fiscal year 2023, a 37% increase over the N21.7 billion earned in the prior fiscal year.
Nnorom noted that the low dividends paid to shareholders were a result of the company’s ongoing initiatives to increase income.
According to the management, generating favorable results for the shareholders was largely dependent on the proactive cost-efficiency methods that were put into place and the unrelenting focus on revenue creation. The company’s MD stated, “This achievement is especially commendable given the challenging economic conditions that impacted the company throughout 2023.”
A 15 percent net profit margin was reached in 2023, indicating a 6 basis point increase over the corresponding 2022 figure. According to her, this shows the company’s tenacity in facing financial difficulties as well as its commitment to raising total profitability.
In Transcorp Hotels’ financial realm, long-term assets are varied; property, plant, and equipment account for 99% of the total, with goodwill, intangibles, and other non-current assets accounting for the remaining 1%.
Olusola claimed that the strategic choice to sell off Transcorp Hotels Calabar’s whole 100% ownership offers a dynamic component to the portfolio of assets as a whole. The company’s proactive strategy to optimizing its asset structure for improved operating efficiency and strategic positioning in the market is highlighted by this step, which the spokesperson called “particularly significant.”
However, a thorough analysis of the liabilities showed that the remaining 24% of the liabilities were interest-bearing, while the remaining 76% were non-interest-bearing.