Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation Plc0 has announced the divestment of its 100% interest in Transcorp Hotels Calabar Limited to Eco Travels and Tours Limited, an indigenous hospitality company.
This was contained in the company’s notice to the Nigerian Exchange Limited seen by Nairametrics.
According to the statement signed by Stanley Chikwendu, Company Secretary, Eco Travels and Tours has a diversified portfolio including hotel management, wellness and fitness facilities, family-centric spaces, and interior and exterior design and decoration.
It noted that Transcorp Hotels strategic focus is on Abuja and the significant continuing investment in the iconic Transcorp Hilton Hotel and in development opportunities in Lagos.
According to the company, in its published 2023 audited financial statements, the Company recorded 36% revenue growth and with the ongoing execution of its business strategies and optimization of new business opportunities, will continue to deliver even greater value to all its stakeholders.
Trascorp Hotels Plc had last year announced the conclusion of its plans to sell 100% equity holdings in its subsidiaries, Trancorp Hotels Calabar.
Recommended reading: Shareholders of Transcorp Hotels to get N2.048 billion dividends for FY’2023
This was part of the special resolutions at the Ninth Annual General Meeting of Transcorp Hotels Plc held at Congress Hall, Transcorp Hilton Abuja.
According to the resolutions released by the Nigerian Exchange Limited (NGX), shareholders authorized the board and the company’s management to dispose its 100% equity interests in Transcorp Hotels Calabar Limited in accordance with relevant laws, statutes, and regulations.
They also authorized the board and the management to invest in, acquire, or divest from any business and/or carry out as the Directors may deem appropriate and in accordance with any relevant laws, any actions, including but not limited to restructuring, reorganization, reconstruction, and such other business arrangement exercise or actions.
Nairametrics reported that Transcorp Hotels Plc reported a profit before tax of N9.412 billion for the year ended 31 December 2023.
According to the financial statements reviewed, Transcorp Hotels reported revenue of N42.701 billion, a 35.81% increase from the N31.442 billion reported the year prior.
A significant portion of this revenue was from room sales, which constitutes about 64% of total revenue.
- The substantial growth in pre-tax profit can be attributed to the higher growth in revenue relative to the growth in cost of sales.
- Operational expenses have seen a persistent increase, with energy costs playing a significant role in driving overall costs higher. Energy expenses surged from N2.3 billion in 2022 to N2.87 billion, reflecting a notable rise.
- Total assets experienced a slight increase, growing by 4.32% YoY to reach N125.687 billion. Despite this growth, the company’s net debt stood at N11.7 billion. However, it’s worth noting that interest expenses are well covered by operating profit.
