Transcorp Plans 5,000 Capacity Event Centre, $200m Lagos Hotel

Transcorp Hotel Plc is getting ready to unveil the biggest banquet centre in Abuja, boasting an expansive seating capacity of over 5,000 individuals. Management of the hotel said the new centre is poised to become the preeminent venue for many grand events.

“This state-of-the-art facility is strategically designed to captivate and host an array of occasions, ranging from conferences and concerts to trade fairs, fashion shows, and more,” managing director/CEO of Transcorp Plc, Dupe Olusola told the company’s shareholders yesterday at its 2023 annual general meeting in Abuja. “Its establishment aims to address the prevailing challenge faced by Abuja — the limited availability of large-capacity halls, often compelling organisers to migrate events to other cities like Lagos.” The N10 billion facility is expected to reach completion by August 2024.

Also, the chairman, board of directors of the company, Emmanuel Nnorom disclosed that the company has begun the construction of a 315-room Transcorp Hotels in Ikoyi, Lagos, adding that the project would redefine luxury in the hospitality sector.

Olusola said the establishment will boast an impressive inventory of 315 meticulously designed rooms and cutting-edge conferencing facilities, setting a new standard for sophistication and convenience. “This expansion initiative reflects our forward-thinking approach and proactive stance in meeting the evolving needs of the market,” she stated.

Olusola said Nigeria is currently losing business and huge revenue to neighbouring countries such as Ghana, Egypt, and Morocco due to the absence of a large conference hall. “We want all businesses, all events, similar to the side to actually come to Abuja and so it ensures that we are able to employ more people and even deliver so much more in terms of value to all our critical stakeholders,” he stated.

Meanwhile, shareholders of the company have approved the disbursement of N2 billion or 20 kobo per ordinary share as final dividend for the year-end 2023.

The gross profit for Transcorp Hotels Pic in the financial year 2023 reached N29.8 billion, signifying a 37 per cent upturn from the N21.7 billion generated in the previous fiscal year.

Nnorom said the company’s ongoing projects aimed at generating more revenue were responsible for the sharing of low dividends to the shareholders.

The management said the implementation of proactive cost-efficiency strategies and an unwavering focus on revenue generation played pivotal roles in delivering positive outcomes for the shareholders. “This achievement is particularly commendable given the challenging economic conditions that impacted the company throughout 2023,” the company MD said.

A net profit margin of 15 per cent was attained in 2023, showcasing an improvement of 6 basis points from the corresponding figure in 2022. She said this not only underscores the firm’s resilience in navigating economic challenges but also emphasises its dedication to enhancing overall profitability.

Within Transcorp Hotels’ financial domain, the long-term assets span a diverse spectrum, with property, plant, and equipment commanding 999 percent, leaving the remaining 1 percent allocated to goodwill, intangibles, and other non-current assets.

Olusola said the strategic decision to divest the entire 100 per cent stake in Transcorp Hotels Calabar adds a dynamic element to the overall asset portfolio. “This move is particularly significant, underscoring the company’s proactive approach to optimising its asset structure for enhanced operational efficiency and strategic positioning in the market,” she stated.

On the other hand, a comprehensive breakdown of liabilities revealed non-interest-bearing liabilities constituting 76 percent and interest-bearing liabilities accounting for the remaining 24 per cent.