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Transcorp Hotels Plc, the largest firm in the hospitality industry by market capitalisation, is best positioned to benefit from the projected hotels industry revenue in Africa, expected to reach $13.80 billion by 2027, with an average Annual Growth Rate of 8.68 percent over the next five years.
The hospitality giant’s posted a net loss of $19 million in 2020 from a profit of $2.30 million in 2019, while sales dipped by 100 percent to $21.50 million the same period; the foundering performance was brought on by the inevitable coronavirus pandemic that hit the hospitality industry as a lockdown policy was imposed by the government to curb the spread of the malaise.
The company was out of the woods in 2021 when it posted a profit of $2.30 million while revenue surged by 117.20 percent to $46.70 million in the period under revenue.
Things are getting better given the gradual return to normalcy as profit surged by 169.44 percent to $9.70 million in 2022.
The company is among the top 10 performers on the NGXASI.
Looking beneath the numbers shows investors are sanguine about the firm’s growth prospects and positive prognosis, which triggered a stock rally that magnified the price to earnings multiples emblematic of a fast growing stock.
Of course, Transcorp Hotels shares have gained 241.59 percent since the start of the year as it is among the top 10 best performers on the NGXASI index, and a price to earnings multiples of 105.33v means investors are willing to pay N105 for every Naira of the company’s earnings.
Dupe Olusola prevents transcorp Hotels from falling off the cliff
Without ingratiating magniloquence, Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, prevented the company from falling off the cliff.
This is because she navigated the hospitality business away from so many challenges such as the coronavirus pandemic and making it a leading brand.
One of Olusola’s notable achievements is the launch of Aura by Transcorp Hotels, the company’s digital platform that provides customers with a seamless and personalized experience.
The platform has received positive reviews from customers and industry experts alike, and has helped to position Transcorp Hotels as a leader in digital innovation in the hospitality sector.
Olusoa’s leadership qualities have been extolled and she’s keen on workers welfare and women empowerment.
The hospitality brand is developing a 5,000-capacity convention centre in Abuja, to be open in Q1 2024. Preliminary works are also ongoing for a 300-room 5-star hotel in the heart of Lagos (Transcorp Hilton Ikoyi). With Aura by Transcorp Hotels, the online platform for booking homes, hotels, and experiences, Transcorp Hotels Plc has fast-tracked its expansion plans, with hotels and apartments from all parts of Nigeria now listed on the platform, and Transcorp Hotels Plc now boasting over 5,000 rooms under management through the platform.
International Business Travel, Meetings, and Conferences are also expected to increase, especially with their investment-friendly outlook of the new leadership in Nigeria. With its 677 rooms and 5,000-capacity convention centre at Transcorp Hilton Abuja, Transcorp Hotels Plc is ready to benefit from the opportunities being created. Discerning investors are positioned to be part of this imminent growth.