Transcorp Hotels leverages technology to deepen market share – MD

Transcorp Hotels Plc says it will deploy best technologies to deepen and expand market share in order to maintain leadership position in the hospitality industry.

Mrs Dupe Olusola, Transcorp Hotels Managing Director/Chief Executive Office, said this at virtual closing gong ceremony hosted by the Nigerian Stock Exchange (NSE) to commemorate the listing of the company’s 2.46 billion rights issue.

Olusola said that the company would leverage modern technology to ensure efficient and effective service delivery across its locations.

“Our key strategy is to continue to deepen our share and expand our market by deploying various strategies like leveraging best in class technologies and continuously providing the highest service standards across our locations.

“We are pleased to celebrate the successful completion of Transcorp Hotels Plc’s N10 billion rights issue and the listing of 2.46 billion ordinary shares at N3.73 per share. The past year had been a challenging one owing to the impact of the pandemic.

“Transcorp is Nigeria’s leading hospitality company with over 800 hotel rooms across Abuja and Calabar. We have retained market leadership and committed to expand rapidly to other locations.

“We introduced initiatives like our drive through cinemas, targeting our local demands and by December 2020 all of these initiatives paid off as the hotel began to witness remarkable recovery with a monthly occupancy rising to as high as 55 per cent.

“We prioritise several exciting and forward thinking initiative. Over the last year, the hospitality sector was one of the worst hit by the pandemic with many hotels shutting down globally and many of them not being able to reopen.

“The fact that Transcorp Hotels not only survived despite these challenges but in the period is on the part to recovery is a testament of what we have put in place and our ability to quickly innovate and adapt to what we call the new normal.

“At the beginning of the pandemic, we had occupancy as low as five per cent and had to very quickly review and take critical and fundamental decisions to remain open and maintained operations at our hotels, that decision got us to where we are today,” she said.

Olusola, however, commended capital market operators, regulators, shareholders and the NSE for their support to ensure the success of the rights issue which achieved 99.3 per cent subscription.

She expressed optimism the shareholders that the company would deliver on its promises in the years ahead.

Mr Oscar Onyema, NSE Chief Executive Officer, said that it was a delight to see listed companies take advantage of the different tools provided by the exchange to raise capital.

Onyema said that financial raise would be used to reduce financing cost and to optimise capital structure.

“I congratulate the board and management of Transcorp Hotels for the growth of this reputable brand.

“The successful capital raise despite the macro economic challenges is highly commendable and the additional financial raise will be used to reduce financing cost and optimise capital structure.

“This year has seen a positive start for the capital market despite the recent surge in cases from the COVID-19 pandemic both locally and internationally,” he said.

Onyema said that the NSE would remain committed to providing issuers with a platform that would allow them to meet their strategic business objectives.

“It is our delight to see listed companies take full advantage of the NSE’s products and services to support their growth trajectory,” he said.

Also speaking, Alhaji Rasheed Yussuf, Managing Director, Trust Yields Securities Ltd., urged the company to sustain and reciprocate the support given to them by the shareholders.

Yussuf said: “Sustain the confidence placed on you and reciprocate. Despite COVID-19, the market has risen enormousely to give you 99.3 per cent support.

“We expect that you will reciprocate by giving shareholders the 99.3 per cent dividend payout so that you will do so well that the shareholders will smile to the bank,” he added.