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Transcorp Hotels Plc Pushes On With Outstanding Q1 Performance

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…as PBT rises by 624.4% and revenue grows by 77.4% 

…Hospitality giant reports revenue of N7bn and gross profit of N5.1bn 

Transcorp Hotels Plc, Nigeria’s top hospitality company and a subsidiary of Transnational Corporation Plc. (Transcorp Group) has ended Q1 2022 with an impressive result, reporting a 77.4% growth in revenue to N7.04 billion from N3.97 billion in the same period in 2021. The hospitality company which owns the iconic Transcorp Hilton Abuja, Transcorp Hotels Calabar, and the online booking platform aura by Transcorp Hotels, also recorded more than 600% growth in profit before tax (PBT) to N1.067 billion from a loss of N203.7 million in the same period last year.

The result is contained in the Company’s Unaudited Financial Statements for the period ended 31 March 2022, published on the Nigerian Exchange Group (NGX).

Commenting on the results, Mrs. Dupe Olusola, Managing Director/Chief Executive Officer of Transcorp Hotels Plc, expressed confidence in the Company’s ability to sustain its growth trajectory.

“Our first-quarter performance was driven by our relentless innovation in all facets of our business, creating new and tailored business and leisure offerings, while consistently improving guest experience to ensure maximum value for every spend. This has seen us record continuous growth from January through March. Our leisure business remains strong on the back of strategies employed following the pandemic, even as our International Business Travellers continue to show impressive recovery. Q1 ended with RevPAR growth of 74.4% when compared with Q1 2021, and an ADR growth of 19.1%, even as we continue to outperform industry average,” Dupe Olusola said.

Looking ahead, we expect to continue to see improvements through the second quarter, as we remain committed to delivering exceptional services and increasing access to luxurious hospitality, in keeping with our mission of redefining hospitality in Africa. Also, as COVID-19 restrictions continue to reduce, we expect business travel to accelerate which would further supplement the buoyant leisure business,” the Managing Director/CEO added.”

In her comments, the Chief Finance Officer, Mrs. Oluwatobiloba Ojediran, highlighted the outstanding performance of the Company, stressing that the Group was able to strategically contain costs of operation to achieve the optimal results.

“A notable level of operational efficiency was witnessed during the quarter, as the operating expense margin reduced from 58% in Q1 2021 to 45% in Q1 2022, despite the impressive 77% year-on-year growth in Revenue. Also, the Gross profit margin was sustained at 73%,” Mrs. Ojediran said.

“This is amidst Nigeria’s inflation rate which climbed to 15.92% in March 2022, from 15.6% in December 2021, the fastest rise in consumer prices since last October 2021. Also, the prices of diesel, which is used to power most businesses, more than doubled within the same period.

As demand continues to rise, the hospitality company has disclosed plans to expedite the commencement of planned developments in Lagos and Port Harcourt, even as it continues to expand its reach via its online booking platform, aura by Transcorp Hotels, which allows people to book hotels and short let apartments, experiences, and order food anywhere in Nigeria. The Company is also developing a world-class event center at the Transcorp Hilton, Abuja.

About Transcorp Hotels Plc.

Transcorp Hotels Plc.  is one of Africa’s leading hospitality companies, committed to redefining hospitality standards. Transcorp Hotels is the hospitality subsidiary of Transnational Corporation Plc. (Transcorp Group). The Company’s hotels include the award-winning Transcorp Hilton Abuja and Transcorp Hotels Calabar. It also owns Aura, an online platform for booking accommodation, food, and memorable lifestyle experiences.

BIG STORY

Power Generation Increased By 34% In 2024 — Power Minister Adelabu

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Adebayo Adelabu, the Minister of Power, announced that Nigeria’s power generation increased by 34% in 2024. Speaking during a budget defense session with the Senate Committee on Power, Adelabu revealed that the administration inherited an average generation capacity of 4,100 megawatts (MW) in 2023 and raised it to 5,528 MW by the end of 2024.

He attributed the increase to the addition of a new 700 MW hydroelectric power dam, Zungeru, and significant improvements from existing power plants, both hydro and thermal. Although the initial target was 6,000 MW, unforeseen challenges such as grid disturbances prevented this achievement. However, the shortfall was minimal.

Adelabu also highlighted a rise in energy access, from 59% in 2023 to 64% in 2024, driven by a combination of grid access expansion and growth in renewable energy initiatives, including solar, small hydro, and wind projects. Despite these advancements, he expressed concerns over the metering gap, with around six million customers metered and over seven million remaining unmetered. To address this, Adelabu mentioned that the ministry had secured a N700 billion fund and planned to procure at least two million meters annually over the next five years, aiming to eliminate the metering gap and fraud in electricity billing.

  • Shiroro-Kaduna-Mando Line Yet to Be Fixed Due to Insecurity

Adelabu also addressed the ongoing issue of the Shiroro-Kaduna-Mando transmission line, which has not been repaired due to persistent insecurity in the region. This line is one of two major power transmission routes to northern Nigeria, and its failure has placed significant pressure on the grid. The minister explained that attempts to repair the line were hindered by terrorist and bandit attacks, forcing the government to hand over the issue to security agencies.

Adelabu acknowledged that the national grid inherited by the government was “very old and dilapidated,” which contributed to eight collapses in 2024, five of which were full collapses. He emphasized that efforts were ongoing to address these challenges, with the Presidential Power Initiative aiming to revamp the grid and eliminate vandalism.

The minister expressed hope that 2025 would bring improvements, stating that despite the setbacks, the government had almost met its targets for 2024.

In response, Eyinnaya Abaribe, chairman of the Senate Committee on Power, questioned the government’s continuous funding of power distribution companies (DisCos).

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BIG STORY

Those Who Collected Money For Alaafin Stool Will Be Prosecuted — Governor Makinde

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Seyi Makinde, the governor of Oyo State, has stated that individuals who received bribes during the selection of the Alaafin of Oyo designate will be prosecuted.

Makinde made this remark on Monday while presenting the staff of office to Abimbola Owoade, the new Alaafin of Oyo, at the Oyo State Government House in Ibadan.

Despite opposition from a five-member faction of the Oyomesi (kingmakers), who preferred Lukman Gbadegesin, Makinde announced Owoade as the Alaafin-designate on Friday.

In July 2024, two members of the Oyomesi informed the Economic and Financial Crimes Commission (EFCC) that Gbadegesin had offered each of the five kingmakers N15 million during the selection process.

While handing over the instruments of office to the monarch, Makinde reiterated that the Alaafin stool would not be for sale during his tenure.

He further emphasized that those who attempted to destabilize the traditional institution in the state would be prosecuted.

“The government is not letting down. We will prosecute them. The money they collected, they will still be prosecuted,” the governor stated.

“Except they go to Kabiyesi and apologise; if he forgives them, then I will also forgive them.”

The governor also clarified that there were no political motives behind his approval of Owoade as Alaafin.

He mentioned that he had neither spoken with Owoade nor met him or any of the other princes competing for the throne.

This approach, he said, allowed him to remain objective in his decision-making.

“Some people said maybe it was political consideration. No. Politics, electioneering is a game,” he stated.

“It’s only when you have been elected that governance becomes a serious business because you will take decisions that will affect millions of people. So, we will not play politics with governance.”

Makinde further explained that in 2019, his administration faced challenges with the traditional institution in Ibadanland, which have since been resolved to everyone’s satisfaction.

Regarding the Alaafin stool vacancy in 2022, he mentioned, “We were moving towards the election, and people said, ‘you have to approve the appointment of Alaafin; otherwise, Oyo people would not vote for you.’”

He added, “I said, ‘the people should not vote for me, but that I would do what was right,’ and Oyo voted for me massively. And Oyo will still continue to vote for me.”

The governor confirmed that the coronation would take place in four weeks, adding, “on that day, I’ll talk.”

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BIG STORY

UPDATE: Why We Sacked Obasa, Replaced Him — Lagos Lawmakers [VIDEO]

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Lawmakers in the Lagos State House of Assembly have revealed why they sacked Mudashiru Obasa as their Speaker on Monday.

The lawmakers spoke after the plenary on Monday during which they also elected Hon. Mojisola Meranda as Obasa’s replacement.

The representative of Epe 1 Constituency, Abiodun Tobun, who spoke on behalf of his colleagues, said: “The Lagos State House of Assembly declared its decision to impeach Speaker Mudashiru Obasa.

“The impeachment was a unanimous decision by the lawmakers.

“The lawmakers agreed to take this step to safeguard our image and Lagos State.

“Change is inevitable, and we felt it was time for a new direction.

“All standing committees and principal office positions have been dissolved.

“We are determined to work together to elevate the Assembly and deliver on our responsibilities to Lagosians.”

Tobun then went on to explain in detail the reason for their decision.

 

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