The Transcorp Hilton Hotel in Abuja will soon wear a new look as the management’s bid to raise the sum of ₦40 billion for renovation purposes was last week approved by shareholders during the company’s Annual General Meeting.
In line with this approval, the management of Transcorp Hotels Plc can utilise different means towards raising the ₦40 billion needed for the renovations, including right issues, private placement, public offering and bonds
Outgoing Chairman, O’tega Emerhor, while speaking during the AGM noted that company made a turnover of ₦12.9 billion and a profit after tax (PAT) of ₦9.5 billion despite the difficult economic situation the company operated in last year. He also blamed the decline in the 2017 results on the closure of the Abuja airport.
Revenue lost during the airport closure, cancellation of key foreign delegations and fewer number of rooms for sale due to the ongoing refurbishment of our hotel in Abuja affected the company’s performance during the year.
Emerhor, however stated that the company intends taking advantage of the pre election buzz.
Revenue fell from ₦15.3 billion recorded in 2016 to ₦13.8. billion in 2017. Gross profit also fell from ₦11.4 billion in 2016 to ₦9.5 billion in 2017.
The decline in profit led to a sharp fall in dividend to ₦0.125 kobo per share; a sharp fall from the ₦0.40 kobo paid for the 2016 financial year.
Transcorp Group Chairman, Tony Elumelu had recently revealed that construction work had begun on its hotel project located on Glover Road Ikoyi. Transcorp Hotels Plc also has interests in Transcorp Hotels Port Harcourt, Transcorp Hotels Calabar, and Transcorp Hotels Ikoyi.
Transcorp Hotel shares are currently trading at ₦7.10 in today’s NSE session.