Transcorp Hotels Plc has recorded a significant rise in energy expenses, surging by 95.88% from N2.43bn in 2023 to N4.76bn in 2024, as revealed in its latest annual report and financial statements.
This sharp increase positioned energy costs as the company’s second-largest operating expense for the year, surpassing even employee-related costs, which climbed from N2.48bn to N4.73bn over the same period.
Managing Economic Challenges
Addressing the operational hurdles of 2024, the newly appointed Managing Director/CEO, Uzoamaka Oshogwe, acknowledged the impact of macroeconomic pressures, including currency fluctuations, inflation, rising energy costs, security concerns, and evolving consumer behavior.
Despite these challenges, Oshogwe highlighted the company’s resilience, stating, “We remained steadfast, navigating an unpredictable landscape with strategic cost management and operational efficiency.”
She further emphasized that maximizing asset potential, streamlining operations, strategic pricing, and cost optimization were pivotal in ensuring profitability and driving growth.
Dividend Payout and Future Investments
Transcorp Hotels Plc approved a final dividend of 64 kobo per share, bringing the total dividend for 2024 to 74 kobo per share—equating to N7.57bn. This follows an interim dividend of 10 kobo per share paid earlier.
Speaking at the company’s 11th Annual General Meeting in Abuja, Board Chairman Emmanuel Nnorom assured shareholders of sustained growth, stating, “We are committed to delivering strong returns and exploring new investment opportunities beyond hospitality.”
He also referenced the 5,000-seater event center—the largest in Nigeria—as a key revenue driver, along with the upcoming Transcorp Hotels Lagos project, both of which are expected to enhance the company’s earnings.
Expansion Plans & Innovation Focus
Looking ahead, Transcorp Hotels is expanding its footprint in Lagos and Abuja to meet rising demand. The flagship 670-room hotel in Abuja currently operates at an 84% average occupancy rate, often reaching full capacity, especially with major international events scheduled for June.
Oshogwe also outlined her vision to elevate guest experience through technology, focusing on seamless check-ins, personalized services, and an enhanced digital experience.
“Our guests should feel valued and unique. Through innovation, we will eliminate delays and create a smooth, personalized hospitality experience,” she said.
With a strategic blend of cost efficiency, expansion, and technological advancement, Transcorp Hotels is positioning itself for sustained growth in a rapidly evolving market.