Transcorp Hotels Sustains Its Impressive record Of Performance Despite COVID 19 Pandemic

By Lateef Adegbite

Transcorp, Nigerian leading Hospitality Company, have continued to maintain its impressive monthly revenue performance even when other big time Hotels are crying of dearth Customers and drop in revenue generation.

 The Companies in the nation’s Hospitality industry may have been forced to cry out because of the adverse effect the Asian country of China emerged  coronavirus,popular, COVID 19, in the global economy,  which had forced many  to scale down their operations.

The Hospitality Company Authorities over the years may have prepared for the rainy day as it had led a solid foundation to ensure that its valuable customers will continue to patronize its services.

  Dupe Olusola, the Transcorp, Managing Director/ Chief Executive Officer, CEO, who could not hide her feelings had said that ‘‘its performance reflects the strength of its business to withstand external shocks and continue to grow revenue even in tough economic conditions’’.

Mrs.Olusola: MD/CEO, Transcorp, Taking Nigeia Hospitality Industry To Greater Heights

 According to her the “demand on the Hotels services has continued ‘‘to improve at impressive levels during the year, 2021,’ but ‘accelerating in the third quarter to pre-pandemic levels’’. Hear her: ‘‘We ended September, 2021, with a 63% occupancy, growing from 28 percent achieved in the same period last year, as we continue to out -perform the industry average on several indices.

 An elated Mrs. Olusola disclosed that  the Hotels witnessed ‘‘significant improvement in its corporate and group bookings, as COVID 19 vaccination rates increase, and companies begin to return to full operations’’.

She further said that  the‘‘domestic leisure demand of the Hotels Facilities had remained very strong and continues to be responsible for the improvement seen on its revenue  generation’’, stressing that ‘‘this signifies its nimbleness and strength of purpose to redefine hospitality in Africa’’.

Mrs. Olusola, the Transcorp CEO  may have gladdened the heart of the  Hotels shareholders when she announced recently that it made a growth rate of 115% based on its unaudited third quarter of 2021, results, which shows a N14.6 billion, revenue records.

An elated Olusola, the Transcorp, CEO, further disclosed that the Hotels recorded a gross profit growth of 149%, or N10.8 billion, thus leading to a profit before tax, PAT, of N745 million, or a 662% improvement on the performance recorded at the same period in 2020

.Giving a blow by blow account of the third quarter unaudited report of the Hotels, she revealed that the Gross profit alone, between July to Sep 2021, was N10.8 billion compared to N4.3 billion compared to the same period last year, showing a (149 growth year-on-year.

Also given an insider information on the operating expenses of the hotel during the period under review, she revealed that N7.9 billion was utilised compared to N6.0 billion in 2020 or 31% in September 2020.

The Interest Cost of N3.1 billion was said to have recorded compared to N4.5 billion in the third quarter of 2020, translating to a 31% decline. It was said to have also recorded also recorded a Profit/Loss Before Tax of N745 million  compared to N5.6 billion in the third quarter of the year 2020, which many had described as very encouraging as it showed a 662% improvement year-on-year.

 The Hotel Authorities may not allowed its assets to drop as it had continued to make new investments. This is reflected on its current total asset which had increased by 2.18% from N115.3 billion in December 2020 to N112.9 billion in the third quarter of 2021.

 The Transcorp Hotels boss had attributed the increases in its quarterly revenues and assets, ‘‘to the Trade Receivables, Cash and Cash Equivalents precipitated by the improvement in business activities during the period’’.

Note that the Hotels total liabilities had increased by 3.31% from N53.5 billion in December 2020 to N51.8 billion between July to September, 2021.  Analysts had attributed the increase in the Hotel Liabilities ‘‘to the trade payables and improved business activities within the period’’.

 Not that the Board of Directors may have put smiles on the Face of the shareholders, as the Shareholder  Fund was increased to N61.84 billion, which was a 1.21%  increase compared to the previous year  third quarter  shareholders Fund of 2020’s value at N61.10 billion.

  The impressive performance of the flagship hotel Transcorp Hilton, may have informed why it was named by the World Travel Awards as ‘‘Africa’s Leading Business Hotels, a record which it had maintained over the last seven years. ‘‘This is a bold testament to our continued focus on redefining hospitality and providing excellent services to our customers, ensuring that every experience with us is memorable’’, Olusola had said.

TheTranscorp helmswoman, could beat her chest that the Hotels will remain ‘‘focused on the execution of its growth strategy, leveraging technology and the expertise of our people to deliver best-in-class guest experience across all its assets, properties and touchpoints’’.

 Only “recently, the Hotel, Launched a digital platform for ‘‘booking accommodation, food and experiences’’. She noted that Aura, the digital Platform, 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 the Hotel asset-light strategy offers us a great opportunity for expansion in line with its long-term plans to expand across Africa.

There is no gainsaying the fact  that as the global economy continues to recover from the impact of the COVID-19 pandemic, Transcorp Hotels under the close watch of mrs.Olusola, an insider said, ‘‘will remain a leader in the nation’s Hospitality industry, offering bespoke services to discerning guests, who live for memorable experiences and excellent service delivery.”

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