Transcorp Hotels Distributes N7.6BN Dividend, Eyes New Investment Horizons

Shareholders of Transcorp Hotels Plc have endorsed the distribution of a ₦7.6 billion dividend.

The firm additionally announced plans to expand its investments outside of the hospitality industry.

Addressing the difficulties encountered during her tenure, the recently named Managing Director/CEO, Uzoamaka Oshogwe, highlighted how different economic strains affected the organization's functioning.

Oshogwe, who took office in January 2025, stated in the financial reports, "The operational landscape in 2024 posed distinct difficulties, encompassing ongoing economic pressures such as fluctuating currencies, surges in inflation, and increasing energy expenses, along with enhanced security issues and evolving customer habits. Despite these intricacies, we maintained our steadfastness."

The newly appointed CEO highlighted the organization's forward-thinking strategy for tackling these issues via careful financial control measures.

She remarked, "An essential factor behind our achievement was concentrating on maximizing the potential of our current resources, simplifying processes, adopting strategic pricing, and implementing cost reduction tactics to boost profit margins. This approach helped us maintain value while opening up fresh avenues for expansion."

Our strategy wasn't just aimed at exceeding expectations; it was also focused on boosting our brand's competitive edge in an increasingly dynamic market environment."

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 reassured the shareholders, stating, "Following what the CEO highlighted, we aim to maintain our robust performance and enhance our return on investment for you consistently. Furthermore, we intend to channel funds into various segments of the economy."

Nnorom pointed out the company’s strategic resources, emphasizing the 5,000-seat events center—the biggest in Nigeria—as a major income source.

He stated, "This establishment will not just earn revenue through rentals but also via food, drinks, and hotel stays. Furthermore, the anticipated Transcorp Hotels Lagos will bolster our collection."

In response to questions from shareholders about the dividend size, Nnorom justified the payment as considerable, emphasizing a notable rise from the prior 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.

Nnorom detailed future ambitions to broaden the hotel chain’s reach, with specific focus on growth in Lagos and Abuja.

"In Lagos, we are working on expanding Transcorp Hotels Lagos. Similarly, here in Abuja, we intend to increase the number of rooms at our current facility. Our 670-room hotel currently maintains an average occupancy rate of around 84%, which can surge to full capacity during peak times. Given the significant international events scheduled particularly for June, we need to expand to meet the growing demand," he clarified.

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

"My main objective is to maintain the progress we have made. In our industry, customers are paramount. We need to deliver outstanding customer service by embracing innovation and leveraging technology," she stated.

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.”

The energy costs for Transcorp Hotels have risen dramatically by 95.88 percent, increasing from ₦2.43 billion in 2023 to ₦4.76 billion in 2024, as stated in the firm's 2024 annual report and financial documents.

The increase in energy costs has made it the second-highest operational expense for the business throughout the year.

The PUNCH noted that energy costs surpassed employee expenditures, increasing to N4.73 billion in 2024 from N2.48 billion the prior year.

Provided by SyndiGate Media Inc. Syndigate.info ).