Management of Transcorp Hotels Plc has announced a profit after tax of N4billion in the financial year ended December 31, 2016, with improvements across all indices despite the economic recession which took a hefty toll on hospitality businesses generally.
Disclosing this during its 3rd Annual General Meeting (AGM) which took place at Transcorp Hilton Abuja, Wednesday, Managing Director/Chief Executive Officer of Transcorp Hotels Plc, Mr. Valentine Ozigbo said that the Company recorded a 10 percent growth in gross revenue at N15.31bn as against N13.98bn in 2015.
This according to him was largely driven by key events including visits by very high profile guests, many foreign heads of government and representatives of consulates.
He said the company recorded a Profit Before Tax of N5.24bn in 2016, maintaining 2015 performance of N5.38bn while the Profit After Tax for the year surpassed 2015 performance of N3.5bn by 17 percent to N4.10bn in 2016.
“Our major priority now is creating value for our stakeholders, improving customer service for our guests and maximising shareholder value, and we believe very strongly that the foundation that we are laying, with the current upgrade and refurbishment of the Transcorp Hilton Abuja and repositioning of Transcorp Hotels Calabar, is certain to yield very positive results,” he said.
Cntinuing, Ozigbo said: “Our turnaround initiatives for Transcorp Hotels Calabar are equally paying off as the hotel recorded laudable profit for the first time since 2012. This development was predicated on strategy of increasing occupancy and proactive cost management.”
On 2017 prospects, Ozigbo maintained that the hotel will keep up with the tempo to sustain the financial performance in 2017, despite the impacts of the temporary airport closure, while also confirming the company is on track to deliver on the ongoing upgrade of Transcorp Hilton Abuja as preparations get on for the 30th anniversary of the Hotel in the 2nd quarter of this year.
Earlier, Chairman of the Company, Olorogun O’tega Emerhor, explained to shareholders that the strong performance recorded by the Company is because the company continued to re-invent its offerings, in keeping with service excellence. He noted that the Company was relentless in maintaining market leadership in its flagship property, closing the year with occupancy of 60%, well ahead of competition.
This, according to him, ensured that Transcorp Hotels delivered a resilient performance even in the face of the impact of economic recession on the hospitality industry which has seen occupancy for large hotels dropping below 35%.
“2016 was a year of notable achievements for Transcorp Hotels Plc, despite the strong economic headwinds. The upgrade of Transcorp Hilton Abuja is underway in line with our commitment to stakeholders to build Africa’s choice hospitality assets,” Emerhor said.
He noted that, in validation of Transcorp Hilton Abuja as the prime hotel property in Abuja, the hotel won numerous awards in 2016 and for the fourth year in a row emerged the proud recipient of five prestigious awards at the 23rd World Travel Awards; the laurels include Africa’s Leading Business Hotel; Nigeria’s Leading Business Hotel, Nigeria’s Leading Hotel and Nigeria’s Leading Hotel Suite (the Presidential Suite).