Transcorp Hotels Plc has reported strong financial performance, posting N97bn in revenue for the 2025 financial year, a 38 per cent increase over the previous year.
At the 12th annual general meeting held in Abuja on Thursday, Chairman of the company, Awele Elumelu, said the hospitality firm entered 2026 on a solid footing following what she described as a successful year.
“So for Transcorp Hotels PLC, 2025 was actually a good year. We’ve entered 2026 quite strongly. We ended the year with a profit of 97bn, which was a 38% increase on the preceding year. And even profit as well, that was our revenue. We’re very happy to be going into the new year,” she said.
She added that the company rewarded shareholders with an improved dividend payout.
“And we’re very pleased that this year we’ve been able to give our shareholders shares of N1.30 kobo per share as the final dividend,” Elumelu stated.
According to her, the company’s performance reflects a combination of shareholder support, effective management, and strong corporate governance.
“So we know actually we’ve been able to delight our shareholders. But we thank them at the same time for their support because it’s through their support and through their encouragement and all the advice that they tend to give us at sessions like this and give the management. And through the hard work and commitment of the management, we’ve been able to do that. So that’s what we’ve been able to do with regard to shareholding.”
Elumelu highlighted brand strength and operational efficiency as key drivers of growth.
“We have a strong brand, and this has worked very well for us, and it continues to improve. We’ve had our management team, they’ve increased their operational efficiency.”
She also noted efforts to diversify the company’s offerings, including the development of a major events facility.
“We’ve also done some work in diversifying what we have. Just in 2025, we built and set up the Transcorp Event Center, which is a multifunctional center, which has a capacity of 5,000. We’ve had lots of big events in 2025, including the Afrexim event, which took up to 4,000 dignitaries from out of state.
“So that has played a major role in that. We’ve also had things like improving our digital technology and improving customer service generally. You can see from our rooms that we’ve seen a lot of digital improvements, from check-in to room service, and of course, our staff.
“We’re blessed with great staff, and so these are some of the things that have led to improvements in revenue.”
Looking ahead, she expressed optimism about the company’s prospects for 2026, including expansion plans.
“For 2026, the board is convinced and is confident that we will do better. Our management team is in line as well, and we just want to build on what we’ve been doing. We want to build on the brand that we’ve had.
“We want to build on investing in infrastructure, investing in technology, and investing in diversifying. We’re looking at setting up a branch in Lagos. We’ve been on this for a while. So this is also another avenue. And all this on the bedrock of good corporate governance, because we pride ourselves on being able to ensure that we carry out good corporate governance.”
Also speaking, the Managing Director of the company, Uzoamaka Oshogwe, said total dividend payout for the year stood at about N13 billion.
“Dividend in total is 13 billion. Because last year we paid, 10kobo, and then this year, that final dividend was 1 naira 20 kobo. So in total that was just slightly over 13 billion.”
On business performance in the new year, she said occupancy rates had picked up strongly after a slow start in January.
“January is kind of slow, but it’s been good. Our occupancy since the middle of January has been about 100%.”
Oshogwe disclosed that the company is collaborating with the Transcorp Group to address energy costs and sustainability concerns.
“Transcorp is known for hospitality, and we invest in hospitality and also in power. So what we’re doing is that we’re partnering with Transcorp Power to ensure that we begin to explore other options for cheaper power. One of the ones that we’ve actually implemented towards the end of last year was the dual gas burner.
“So that’s actually using gas to generate power. So all of our boilers, so if you think about the number of boilers we have in 667 rooms, that are powered by gas. So that not just saves us costs, it’s also very friendly to the environment.
“And then we’re also working with Transcorp Energy, and we’re looking at renewable energy. And that is also, what brings to mind the sustainability and the ESG factor into our operations.”
She added that capital allocation would be guided by projects capable of delivering multiple returns.
“We are putting in our money, where we can have multiple capital appreciations. So that is quite intentional, because funds are limited. So you must ensure that whatever projects you actually put your funds in have that multiplying effect in revenue generation.”
According to her, the company’s strategy for 2026 will focus on operational excellence, technology investment, and brand relevance.
“And then the second one is operational excellence. We started this last year. And that is just investing in our people and also in technology.
“So those are the two key areas that we’re actually going to pinpoint our operational excellence in. And then number three is brand relevance. Brand relevance is all about people beginning to understand what our brand stands for and equating that into sustainability in our growth.
“So those are the three key areas that we’re going to be concentrating on this year to ensure that we sustain the revenue growth, and we also multiply it. Because one of the shareholders, first of all, started by saying 100 billion. And I said, we are already there,” she concluded.
The company reported a profit before tax of N22.613bn for the year ended December 31, 2024, representing an impressive 138.48 per cent year-on-year growth. It also declared a final dividend of N0.64 per share, bringing the total dividend for the year to N0.74, including the N0.10 interim dividend previously paid.
Despite cost pressures, the company maintained solid margins. Although the cost of sales grew faster than revenue, gross profit margin remained strong at 70.89 per cent. Room sales, with an 84.5 per cent margin, remained the most profitable segment, while food and beverages, at 42.9 per cent, operated with comparatively tighter margins. Operational expenses increased during the year, largely driven by energy costs, which surged from N2.425 billion in 2023 to N4.763 billion.
On the balance sheet, total assets grew by 11.58 per cent to N140.696 billion, reflecting continued expansion. Total borrowings declined by 22.12 per cent, reducing financial leverage, while interest expenses fell 10.21 per cent year-on-year to N2.798 billion.
This improved the company’s interest coverage ratio to 9.30 times from 4.22 times in 2023, indicating that operating profit comfortably covered interest obligations. Shareholders’ funds also rose by 20.54 per cent year-on-year, supported by strong earnings growth and retained profits, further strengthening its financial position.
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