Transcorp Hotels Plc, owner of the flagship Transcorp Hilton Abuja, increased nine-month 2026 profit even as revenue dipped.
Lower costs, wider margins and a sharp rise in finance income drove the gain.
Profit after tax rose 4.8% to N15.54 billion in the nine months to September, from N14.82 billion a year earlier, according to unaudited results filed with the Nigerian Exchange on Friday. Earnings per share rose to 152 kobo from 145 kobo. Revenue slipped 2.6% to N69.46 billion.
Cost of sales fell 6.4% to N16.15 billion, faster than the decline in revenue, which lifted gross margin to 76.8% from 75.8%. Operating expenses fell 1.8% to N29.32 billion. Repairs and maintenance dropped 31%, travel and logistics 38%, and energy costs 7.9%, even as the company absorbed a 43% rise in depreciation after commissioning the 5,000-seat Transcorp Centre in 2025.
Lower taxes also helped. The income tax charge fell 7.9% to N6.98 billion. That pushed net margin up to 22.4% from 20.8%, so the company kept more of each naira of sales.
Managing Director/CEO, Transcorp Hotels Plc, Uzoamaka Oshogwe, commented:
“Our Q3 performance demonstrates the strength of our earnings discipline. Despite a 3% year-on-year decline in revenue, we grew profit after tax by 5% and expanded our net profit margin to 22.3%. We are converting revenue into stronger profits, protecting margins, and building a more resilient business. We are deploying capital decisively to the highest potential opportunities across our hospitality, events and lifestyle portfolio, with every investment held to clear financial and return benchmarks. As we close the year, our priorities remain clear: sustain margin growth, deepen guest and client engagement, and position the business to maximise returns as demand strengthens. We remain focused on profitable growth, disciplined execution, and long-term value creation.”
Third-Quarter Revenue Turns Higher
Transcorp Hotels sales returned to growth in the July–September quarter. Revenue rose 2.7% to N25.04 billion, the strongest quarter of the year, accounting for 36% of nine-month sales. Gross profit increased 4.6% to N19.34 billion, and gross margin widened to 77.2% from 75.8%, on MoneyCentral calculations.
Rooms remain the main source of revenue, contributing N46.29 billion, or two-thirds of the total.
That was little changed from a year earlier, a sign of steady demand at the group’s flagship Abuja property.
Some smaller income lines grew quickly: service charges rose 74% to N690.6 million and recreation services 42% to N443.3 million. Food and beverage sales eased 8.3% to N19.27 billion.
Rewarding Shareholders
Transcorp Hotels has paid N13.32 billion in dividends so far this year: a final 2025 dividend of N1.20 a share and a 2026 interim of 10 kobo. In all of 2025 it paid N7.58 billion. Cash and bank balances still rose to N20.34 billion from N16.96 billion at the end of December.
Investors have rewarded the strategy. The stock closed at N290.50 on Friday, up 69.98% this year, and 77.68% over 12 months.
That gives the company a market value of about N2.975 trillion. The Ministry of Finance Incorporated owns 11.04% and Transnational Corporation 76.16%.
Chief Finance Officer, Transcorp Hotels Plc, Oluwatobiloba Ojediran, added:
“The quality of our earnings improved in the period. Net finance cost eased by 35% to ₦1.5 billion, representing about 2% of revenue, compared with more than 3% a year ago, while administrative expenses were held below prior-year levels. Our total assets have grown by 29% to ₦206.8 billion, and shareholders’ funds stand at ₦97.5 billion. As the balance sheet scales, we are actively managing our liabilities and funding costs, keeping our capital structure prudent, and making sure that future growth is backed by sustainable sources of capital and clear return thresholds.”
Transcorp Hotels continues to enhance its portfolio of hospitality and lifestyle offerings, with Transcorp Hilton Abuja remaining a leading destination for business and leisure travellers, while Transcorp Centre, the Company’s 5,000-seat capacity event and conference venue, continues to strengthen Abuja’s position as a destination for major corporate, cultural and social events.
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