Transcorp Hotels: Room Segment Remains Primary Revenue Engine Showing Hospitality Strength

Transcorp Hotels room segment was the major driver of its revenue surge in the third quarter (Q3) that ended September 2025, showing its strength in the Nigerian hospitality sector.

The top-4 sources of revenue as at Q3, 2025 were Rooms at N48.05 billion, Food and Beverage (F/B) N21 billion, Shop Rental N1.36 billion and Event center hall rental at N1.15 billion.

Room revenues rose by 50.7% year on year, compared to F/B which was up 41% and shop rental up 20.3%.

The Event center and hall renting segment is in its first year of full operations and has no corresponding period for comparison.

The Rooms segment also outperformed with gross margin of 87.5%, with cost of sales of N6 billion for the 9-month period, while gross margins for Food and beverages came in at 48%, with cost of sales of N10.92 billion.

In other words, the Rooms segment of Transcorp Hotels is a high margin fast growing business that has a niche (luxury) property in the heart of the Nigerian capital Abuja, with more rooms under development in Lagos and Port Harcourt.

Trading at a Price to Earnings (PE) ratio of 99 and market cap of N1.68 trillion, the market is rewarding Transcorp Hotels fast growth with a premium valuation.

Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group), delivered ₦72.31 billion in revenue in the third quarter (Q3) of 2025, a 49% increase from ₦48.49 billion in Q3 2024, while Profit Before Tax (PBT) surged 36% to ₦22.4 billion.

Worthy of mention is the recent triple win for Transcorp Hotels at the globally renowned Seven Star Luxury Awards, winning: Best Luxury Business Hotel (Nigeria & Africa), Best Luxury Event and Conference Centre (Nigeria & Africa) and -Best CEO of the Year.

Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation Plc, one of Africa’s leading listed companies with strategic investments in the power, hospitality, and energy sectors.

Transcorp Hotels is redefining hospitality standards in Africa through its businesses, including the iconic Transcorp Hilton Abuja, Nigeria’s flagship hospitality destination, and digital platform, Aura by Transcorp Hotels.

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