Transcorp Hotels Grows Revenue Per Room 50% as Occupancy Rate Improves

Transcorp Hotels Plc, a leading hospitality brand, has maintained an impressive run with a 50 percent increase in revenue per available room for its Hotels (RevPar), in the third quarter(Q3) of 2023, compared to 2022 levels.

An uplift in RevPar signals Transcorp Hotels average room rate or its occupancy rate is improving, and analysts are optimistic the hospitality giant will continue to record improved performance.

In short, it generated revenue per room of N24.30 million in 2023, 2022, N16.21 million; 2021, N11.53 million; 2020, N5.39 million; 2019, N11.50 million; 2018 N9.82 million; 2017, N7.63 million, and 2016, N9million, according to MoneyCentral calculations.

The hospitality giant’s consistent growth in profit margin in the face of macroeconomic uncertainties earned it a place at the NGX All Share Index – the list of the most liquid and capitallised firms- while investors have confidence in its growth and investment potentials.

With a year to date return of 610.40 percent, Transcorp Hotel is the third best performer on the NGXASI index.

The company’s total revenue spiked by 31.78 percent to N29.85 billion in September 2023 from N22.65 billion as at September 2022.

Gross profit was up 31.80 percent to N21.59 billion in September 2023 from N16.38 billion the previous year.

Operating profit increased by 33.22 percent to N8.46 billion as at September 2023 from N6.35 billion as at September 2022.

The company posted record profit of N4.07 billion, which is a surge of 79.29 percent, compared to the previous year.

Net profit margin rose to 13.64 percent in the period under review from 10.03 percent the previous year.

A debt-to-equity ratio of 32.30 percent means that Transcorp Hotels is not susceptible to financial risk while a times coverage ratio of 2.86x indicates it has the financial strength to pay interest on money borrowed.

Transcorp Hotels Plc. is one of Africa’s leading hospitality companies, committed to redefining hospitality on the continent. Transcorp Hotels is the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group).

The Company’s hotels include the award-winning Transcorp Hilton Abuja and Transcorp Hotels Calabar. It also owns Aura, an online platform for booking homes, hotels and memorable lifestyle experiences.

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