Latest News
Transcorp Hotels revenue rises 10 per cent on strong room sales
News Highlight
- Transcorp Hotels' room sales rose 6 per cent to N9.6 billion.
Transcorp Hotels – the hospitality subsidiary of Transnational Corporation of Nigeria (Transcorp) – has reported that its 2016 revenue rose by 10 per cent to N15.31 billion, compared to N13.78 billion posted in 2015. In a statement released at the Nigerian Stock Exchange on Tuesday, the company said its revenue growth was driven mainly by strong sales of rooms as well as a rise in food and beverage sales.
Notwithstanding the country’s prevailing economic crisis, which has affected demand for luxury hotel accommodation, Transcorp Hotels said room sales rose 6 per cent to N9.6 billion; sales of foods and beverages rose 27 per cent to N4.53 billion; entertainment and restaurant revenues rose 28 per cent to N720.5 million; and service charges rose 5 per cent to N160 million.
Shop rental income, however, fell 54 per cent to N299.7 million.
Transcorp Hotels also reported that its after-tax profit rose 17 per cent to N4.1 billion from N3.5 billion reported a year earlier due mainly to a lower income tax expense during the period under review.
In 2015, Transcorp Hotels raised N19.758 billion via two bond offerings to renovate its flagship hotel – the Transcorp Hilton Abuja. The company reported that it had utilized over 75 per cent of the bond proceeds for the renovation project, which is expected to be completed in April 2017. An ongoing construction of a multipurpose banquet hall at the Transcorp Hilton Abuja is set to be completed in December of this year, the company said.
Transcorp Hotels owns two properties in Nigeria: Transcorp Hilton, Abuja, and Transcorp Hotels, Calabar. The company is currently developing two Hilton hotels in Lagos and Port Harcourt.
As at the NSE on Wednesday, the company’s stock traded flat at N4.98 per share.
Related News
Latest Blogs
- Is protest an endangered human right of Nigerians?
- Issues in using price control in Nigeria
- CBN’s target of 21 percent inflation rate
- Why electricity privatisation failed (1)?
- It's stability, stupid! Stability of the naira is key to Nigeria’s growth
Most Popular News
- IFC, partners back Indorama in Nigeria with $1.25 billion for fertiliser export
- Univercells signs MoU with FG on biopharmaceutical development in Nigeria
- CBN settles backlog of foreign exchange obligations
- Ali Pate to deliver keynote speech at NDFF 2024 Conference
- Euromonitor forecasts Sub-Saharan Africa GDP to grow to $4.5trn by 2040
- Afreximbank-backed Geometric Power commissions Aba project