Transcorp Hotels Plc, the hospitality arm of Transcorp Group, has announced an outstanding Q3 2024 performance, showcasing a robust 67% revenue growth from N28.97 billion in Q3 2023 to N48.49 billion. The company also saw a remarkable 192% rise in profit before tax, jumping from N5.64 billion to N16.44 billion over the same period.
This impressive revenue growth was driven by strategic pricing initiatives and strong sales across all business segments, with a particular focus on the Group and International Business segments. The company also improved its cost management, reducing its operating expense margin by 4 percentage points year-on-year, highlighting its agility in navigating market challenges.
These results underscore Transcorp Hotels’ resilience and its commitment to consistently delivering value through an emphasis on customer experience, operational efficiency, and innovation in service delivery.
Oluwatobiloba Ojediran, Chief Financial Officer of Transcorp Hotels Plc, commented on the results, stating, “Our strong performance in Q3 2024, along with improved profit margins and revenue growth, reflects the resilience of our business model and our effective cost management strategies. Despite economic challenges, our commitment to financial discipline and operational excellence has kept us on a steady growth path.”
Dupe Olusola, Managing Director/CEO of Transcorp Hotels Plc, added, “We are proud of our continued growth, which highlights our dedication to delivering value to shareholders. With our award-winning service and premium properties, we remain the gateway to Nigeria’s vibrant hospitality and cultural experiences. In the coming weeks, we will be unveiling a significant addition to our flagship brand, further strengthening our position as a leader in African hospitality.”
In Q3 2024, Transcorp Hotels recorded a significant 67% revenue increase, rising from N28.97 billion in the same period in 2023 to N48.49 billion. This robust growth highlights the company’s ability to expand its market presence and capitalize on strategic opportunities in the hospitality sector.
The company also posted an impressive 192% jump in profit before tax, reaching N16.44 billion, compared to N5.64 billion in Q3 2023. This remarkable rise in profitability reflects Transcorp Hotels’ effective financial management and operational efficiency, despite ongoing economic challenges.
Similarly, profit after tax grew by 146%, moving from N4.07 billion in Q3 2023 to N10.24 billion in Q3 2024. This substantial increase further underscores the company’s strong financial health and its ability to generate higher returns for its stakeholders.
Occupancy rates at Transcorp Hotels also improved, rising to 83% in Q3 2024 from 79% the previous year. This increase indicates the company’s success in attracting more guests and maintaining high service standards, contributing to its overall revenue growth.
Additionally, Revenue per Available Room (RevPAR) climbed by 64%, growing from N106,244 in Q3 2023 to N174,376 in Q3 2024. This improvement highlights the company’s ability to optimize room pricing and maximize its earning potential.
Finally, the company’s operating expense margin reduced by four percentage points, dropping from 47% in Q3 2023 to 43% in Q3 2024. This reduction signifies Transcorp Hotels’ strong focus on cost management, leading to more efficient operations and enhanced profitability.
