Transcorp Hotels pays N7.6bn dividend, plans investment diversification

Transcorp Hotels Plc shareholders have approved the payment of N7.6bn dividend.

The company also said it would diversify its investment beyond the hospitality sector.

Speaking on the challenges faced during the period, the newly appointed Managing Director/CEO, Uzoamaka Oshogwe, noted the impact of various economic pressures on the company’s operations.

Oshogwe, who was appointed in January 2025, said in the financial statements, “The operating environment in 2024 presented unique challenges, ranging from persistent macroeconomic pressures – including currency volatility, inflationary spikes, and rising energy costs – to heightened security concerns and shifting consumer behaviours. Yet, in the face of these complexities, our resilience remained unshaken.”

The new CEO emphasised the company’s proactive approach to navigating these challenges through strategic cost management.

She added, “A critical aspect of our success was our focus on maximising the potential of our existing assets, streamlining operations, strategic pricing, and executing cost optimisation strategies to enhance profitability, ensuring that we not only preserved value but created new pathways for growth.

Our approach was not only about surpassing expectations but also elevating our brand’s competitiveness in a rapidly evolving landscape.”

Transcorp Hotels Plc also approved a final dividend payment of 64 kobo per share for the 2024 financial year, bringing the total dividend payout to 74 kobo per share.

This amounts to N7.57bn, following an earlier interim dividend of 10 kobo per share.

The Chairman of the Board of Directors, Emmanuel Nnorom, announced the dividend approval during the company’s 11th Annual General Meeting held on Thursday in Abuja.

He also hinted at plans to diversify the company’s investments beyond the hospitality sector, affirming the commitment to sustaining performance and increasing returns.

Nnorom assured shareholders, saying, “As the CEO mentioned, we will sustain our strong performance and continuously improve our returns to shareholders. Additionally, we plan to invest in other sectors of the economy.”

Highlighting the company’s strategic assets, Nnorom referenced the 5,000-seater event centre, the largest of its kind in Nigeria, as a key revenue generator.

He said, “This facility will not only generate income from rentals but also from food, beverages, and hotel accommodations. Additionally, the upcoming Transcorp Hotels Lagos will further strengthen our portfolio.”

Addressing concerns from shareholders regarding the dividend amount, Nnorom defended the payout as substantial, highlighting a significant increase compared to the previous year.

“The dividend we paid is quite good. For 2024, we paid an interim dividend of 10 kobo and now a final dividend of 64 kobo, bringing the total to 74 kobo. When compared to 2023, where only 20 kobo was paid, this marks a 270 per cent increase. We are committed to consistently returning value to shareholders,” he said.

Looking ahead, Nnorom outlined plans to expand the hotel chain, particularly in Lagos and Abuja.

“In Lagos, we are developing Transcorp Hotels Lagos. Here in Abuja, we also plan to add more rooms to the existing hotel. Currently, our 670-room hotel operates at an 84 per cent average occupancy rate, sometimes even reaching 100 per cent. With major international events coming up, especially in June, we must expand to accommodate the increasing demand,” he explained.

The Managing Director/CEO, Uzoamaka Oshogwe, also shared her vision for the company, focusing on enhancing customer experience through technological innovation.

“My primary goal is to sustain the growth we’ve achieved. In this business, guests come first. We must provide an exceptional guest experience through innovation and technology,” she said.

Oshogwe plans to streamline the check-in process and personalise guest experiences, adding, “We want our guests to feel special, as if they are the only ones in the hotel. Through technology, we will eliminate delays at check-in and ensure seamless service.”

Transcorp Hotels’ energy cost has surged by 95.88 per cent from N2.43bn in 2023 to N4.76bn in 2024, according to the company’s 2024 annual report and financial statements.

This rise in energy expenses makes it the second-largest operating cost for the company during the year.

The PUNCH observed that the energy costs exceeded employee expenses, which rose to N4.73bn in 2024 from N2.48bn the previous year.