Transcorp Hotels embarks on strategic expansion, targets N28bn revenue

Transcorp Hotels Plc is targeting a revenue of N28 billion and occupancy of 70 per cent by 2025.

The company’s Managing Director/Chief Executive Officer, Mrs Dupe Olusola, said this at the virtual “Facts behind the Figures,” organised by the Nigerian Exchange (NGX) on Wednesday in Lagos.

A breakdown of the company’s five-year plan shows revenue projections of N17 billion for 2021, N21 billion for 2022, N22 billion for 2023 and N26 billion for the 2024 financial year.

Speaking on the projections, Olusola said the company’s key strategic initiatives remained to be the leading hospitality brand in Africa starting from Nigeria.

She said the company had mapped out key strategic initiatives to boost growth and remain competitive in the industry in spite of the COVID-19 pandemic.

Olusola listed the key strategic initiatives as sweating existing assets/operational excellence, expanding into new businesses and locations and increasing efficiency/innovation through investment in technology.

According to her, the company has introduced a digital platform tagged “Aura” to connect travellers to unique properties, restaurants and experiences across Africa starting from Nigeria.

She said the company was equipped with a sound financial plan and clear target to stabilise its balance sheet.

“As a company, we will continue to build our team of exceptional people, customer-focused strategy, sustainable business model and disciplined approach to financial management, to grow as a business as we continue to deliver value to all our stakeholders,” Olusola said.

She said the company remained resilient despite the adverse effect of the COVID-19 pandemic on all its business segments.

“Our primary goal was to survive as individuals and as a business, to adapt and to thrive in a new, changing and unprecedented environment.

“We focused on quickly adjusting to the ‘new normal’ and remained positive and proactive as we introduced and successfully implemented our strategies and initiatives for the season.

“We prioritised the implementation of strategies and protocols that were aimed at promoting the safety of our employees, guests and stakeholders.

“A gradual but continuous recovery and rise in patronage and earnings is predicted.

“However, hotels can only achieve this through the development and implementation of agile strategies, adaptive to the current realities,” she added.

Also speaking, Mrs Oluwatobiloba Ojediran, the company’s Chief Finance Officer, said the company projected 60 per cent occupancy for 2021 and 65 per cent for 2022.

Ojediran added that the company was targeting 65 per cent occupancy for 2023 and 70 per cent in 2024.

She said the company began 2021 in a strong position, maintaining its place as the first hospitality brand in the country, having learned valuable lessons through the turbulence of the previous year.

“The economic impact of the COVID-19 has further emphasised the need for us to stay focused and committed to the three strategic core values of the group – enterprise, excellence and execution.

“These core values will continue to guide our decision-making across the group to ensure that we deliver superior and sustained value for our customers, shareholders and employees,” Ojediran said.