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Nigeria has the largest economy in Africa, and perhaps its most prominent hospitality player is Transcorp Hotels. While relatively small, the brand is watched with interest because of its expansion plans.
Nigeria’s Transcorp Hotels, one of Africa’s biggest hotel players, has posted full-year 2023 results: Profit was up 133% year-over-year, and revenue gained 35.8%.
The operator and owner of the 677-room Transcorp Hilton Abuja and the 146-room Transcorp Hotels Calabar produced the highest revenue in Transcorp Hotels’ three decades of existence.
Transcorp Hotels is 11% owned by the national government and three-quarters owned by Transnational Corporation, a conglomerate that also has energy and agriculture interests.
Hilton generated $1.7 million in management fees (or 1.5% of revenue) from the operator, plus unspecified incentive fees as a percentage of profit.
Transcorp Hotels’ Expansion Plans
The hotelier has arranged about $110 million in financing and cash with partner Heirs Holdings to build a 300-room luxury hotel in the Ikoyi district of central Lagos.
By April, the flagship Transcorp Hilton Abuja aims to open a 5,000-seater capacity event center close to the hotel. The hotel has just added a premium spa. The city’s new convention center, the 1,200-person capacity Congress Hall, is close to the property, too.
In 2021, Transcrop Hotels launched a homegrown listing marketplace for short-term apartment rentals and experiences. Entrepreneurs have posted more than 5,000 listings for short-term rentals, tours, activities, and restaurant reservations on the company’s mobile booking app, Aura.
The group has seen its stock price soar more than 1,000% in the past year and is one of the 10 largest companies by market capitalization on the national stock exchange.
“Expansion, expansion, expansion,” said Dupe Olusola, CEO and managing director. “That is the key focus for us.”
Accommodations Sector Stock Index Performance Year-to-Date
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Tags: future of lodging, hilton, hotel earnings, nigeria
Photo credit: Exterior aerial photo of Transcorp Hilton Abuja, a flagship property in Nigeria. Source: Transcorp Hotels.