28/04/2024
Tony Elumelu’s Transcorp hotel is building its Lagos property, which will be known as Transcorp Hotel Ikoyi Lagos when completed.
The 20-story hotel project will be completed in 2027 and will be a 315-room property to rival the Marriott and Sheraton’s of this world.
The hotel project, which has been long in the making, was stalled at a point, but after resolving the complex issues, the ambitious hotel project resumed.
At the moment, 90% of Transcorp hotel revenue comes from their Abuja property, known as Transcorp Abuja.
The 20-story hotel tower in Lagos will help the firm diversify its earnings away from the Abuja Transcorp Hilton, from which it currently makes over 90 percent of its revenue.
“It is significant as it will help grow our revenues and deliver more in the hospitality space,” said Dupe Olusola, Managing Director and Chief Executive Officer of Transcorp Hotels Plc.
Transcorp will consider equity and debt financing for the Lagos hotel, Olusola said.
The group has sold the loss-making Transcorp Hotel Calabar to a new investor.
Transcorp Hotel had a good year last year with audited 2023 full-year results that showed outstanding performance with record-breaking revenue of N41.5 billion in 2023, compared to N30.4 billion in 2022, marking a substantial 36% growth year-on-year.
Profit for the year grew by 133 percent, from N2.6 billion in December 2022 to N6.1 billion in December 2023. Total assets increased by five percent, from N120.5 billion in December 2022 to N126.1 billion in December 2023.
For those of us who adore him, TOE operates a profitable conglomerate and serves as a shining example of successful entrepreneurship for my generation, showing us how it is done.
One business move at a time.
