Transcorp Hotels Sustains Growth with Q1 PBT Up 15% to N7.08bn

Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group), has announced strong unaudited results for the first quarter ended March 31, 2026, with revenue increasing 9 per cent to N22.41 billion and profit before tax (PBT) rising 15 per cent to N7.08 billion.

The performance marks a continuation of growth momentum for the NGX-listed company, which operates flagship properties including the iconic Transcorp Hilton Abuja—a 670-room five-star hotel—and Transcorp Hilton Ikoyi, alongside other ventures like the planned Transcorp Hotels Calabar. Revenue climbed from N20.64 billion in Q1 2025, while PBT advanced from N6.18 billion, reflecting resilience in Nigeria’s hospitality industry.

Key drivers included an improved gross profit margin of 77 per cent, up from 75 per cent a year earlier, and a reduced cost of sales margin of 23 per cent versus 25 per cent in Q1 2025. These gains stem from enhanced operational efficiency, stronger service delivery, and cost optimisation strategies implemented during the period.

The managing director/CEO Uzoamaka Oshogwe hailed the results as evidence of “a strategy anchored on discipline, operational efficiency, and consistent value creation.”

She noted, “The 15 per cent growth in Profit Before Tax, alongside the improvement in gross profit margin to 77 per cent, reflects the resilience of our fundamentals and the deliberate execution of our growth agenda. Transcorp Hotels is not only growing; we are setting new benchmarks for world-class hospitality in Africa and remain committed to continuously elevating that standard.”

The chief finance officer Oluwatobiloba Ojediran reinforced this, stating, “These results reflect a clear and compelling story of a team deeply committed to operational efficiency and cost management without compromising our service standards. In Q1 2026, we achieved revenue of N22.41 billion, a nine per cent growth from the N20.64 billion in Q1 2025, while effectively reducing our cost of sales margin from 25 per cent in Q1 2025 to 23 per cent in Q1 2026.”

The upbeat figures come against a backdrop of gradual recovery in Nigeria’s hospitality sector, buoyed by rising domestic business travel, improved security in key cities, and government efforts to boost tourism through initiatives like the e-Visa programme.

However, challenges persist, including naira volatility, inflation above 30 per cent, and high energy costs—areas where Transcorp Group’s diversified portfolio in power (via Transcorp Power) provides synergies.

Industry analysts view the results positively. “Transcorp Hotels’ margin expansion signals effective management in a tough macro environment,” said Chinedu Okoro, a Lagos-based financial analyst at ARM Research. “With occupancy rates likely benefiting from Abuja’s role as Nigeria’s administrative capital, this sets a strong foundation for full-year outperformance.”

Historically, the company has shown steady progress: full-year 2025 revenue reached approximately N85 billion, with PBT at N25 billion, building on post-COVID recovery. The Q1 2026 uptick suggests potential for exceeding those benchmarks, especially as international conferences and oil & gas events return to Abuja.