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Transcorp Hotels, the hospitality subsidiary of Transnational Corporation of Nigeria (Transcorp), reported today that its after-tax profit rose by 14 per cent during the nine-month period ended on September 30, 2016. The company said its after-tax profit rose to N2.67 billion from N2.35 billion posted a year earlier due mainly to increased sales of rooms as well as food and beverages.

Transcorp Hotels generates revenue from hotel accommodation, food and beverages, entertainment and restaurant, related service fees and rental income. The company said its revenue rose by 10 per cent to N11.47 billion compared with N10.46 billion in a similar period of last year.

A breakdown of the company’s revenue shows that sales of rooms rose by 3.5 per cent to N7.35 billion, food and beverages rose by 25 per cent to N3.14 billion, shop rental rose by 0.5 per cent to N509.1 million, other operating revenue rose by 39 per cent to N466.65 million; and service charge rose 9 per cent to N11.3 million.

Transcorp Hotels is currently renovating its flagship hotel – the Transcorp Hilton, Abuja – and constructing two other Hilton hotels in Lagos and Port Harcourt. Last year, the company raised N19.758 billion via two bond offerings to fund its renovation and construction projects.

For the period under review, Transcorp Hotels said basic earnings per share rose to 35 kobo compared with 31 kobo declared a year earlier. The company’s stock price on the Nigerian Stock Exchange remained flat at N5.28 per share after trading closed on Friday.