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Transcorp Hotels will expand its activities – MD

Vaseline 2 months ago

The Managing Director/Chief Executive Officer of Transcorp Hotels, Dupe Olusola, has said the hospitality group aims to expand its operational footprint across the country and even to the African continent.

Olusola announced this during an investor call on Friday.

This revelation comes a day after the company informed investors through a corporate filing with the Nigerian Exchange Limited that it has divested its 100 percent stake in Transcorp Hotels Calabar Limited to Eco Travels and Tours, an indigenous hospitality company.

She said: “The focus for us going forward is to expand, to ensure that we can reach a bigger footprint in the hospitality sector, not just in Abuja, but across Nigeria and then into Africa. We immediately take advantage of the opportunity to bring on board an event center in our building that can accommodate three to five thousand people. We are pleased to say that it will be launched in the third quarter of this year.

“We are confident that this will encourage and attract more business coming to us from outside Nigeria. We are also excited to discuss the development of a new five-star hotel in Ikoyi, Lagos.”

On the key drivers of its performance, the Transcorp MD said: “To ensure our performance, we will focus on key growth drivers to ensure we are continually well-positioned to also benefit from the changing industry and economy. The enhanced use of our digital platform, Aura, means we can revolutionize the way we generate bookings, communicate with our guests and generate revenue.

“Also important is the need to upgrade our technology and enrich our guest experience. We strive to optimize our operating costs without loss of quality. We are confident and optimistic that we will maintain our performance through 2024 and beyond.”

Olusola further stated that the immediate concern of the company was the Ikoyi project which had been postponed due to regulatory restrictions.

She said: “Our focus at the moment is on our Ikoyi, Lagos project and it has been a bit delayed due to a lot of regulatory issues but we are happy to say that we have acquired some more land. In the middle of the progress of this process. We are currently in the process of finalizing the agreement with most of our construction suppliers and finalizing our fundraising.”

“So we are confident that we will not reduce our footprint, but we will grow in this area within the next two to three years.

Meanwhile, the Chief Financial Officer of Transcorp Hotels, Oluwatobiloba Ojerinde, shared the company’s 2023 financial results in her presentation.

Ojerinde stated: “We achieved gross profit growth of approximately 72 percent in 2023. We also recorded a 24 percent increase in operating costs from N13.9 billion in 2022 to N17.3 billion in 2023 and this is attributed to improved operational costs. activities.

“At this time, it is worth noting that we have experienced an increase in our revenue-to-expense ratio, which decreased from 91 percent to 85 percent in 2023, which reflects our emphasis on operational efficiency at the company and has enabled us to implement several cost-saving strategies despite inflation and the devaluation of the naira affecting our operations.

“I would like to share with you some of the drivers behind our performance. In terms of revenue, we have positioned ourselves to benefit from the economic revival, increased business activity and the political season, which has driven revenue growth across all our business units. We have also leveraged the lessons of the COVID era and continued to diversify.”