Nigeria’s Transcorp Hotels Posts Record Profits and Expands Hilton Operations

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Nigeria has the largest economy in Africa, and perhaps its most prominent hospitality player is Transcorp Hotels. While relatively small, the brand is watched with interest because of its expansion plans.

Nigeria’s Transcorp Hotels, one of Africa’s biggest hotel players, posted full-year 2023 results Tuesday: Profit was up 133% year-over-year and revenue gained 35.8%.

The operator and owner of the 677-room Transcorp Hilton Abuja and the 146-room Transcorp Hotels Calabar produced the highest revenue in Transcorp Hotels’ three decades of existence.

Transcorp Hotels is 11% owned by the national government and three-quarters owned by Transnational Corporation of Nigeria, a conglomerate that has interests in energy and agriculture.

Hilton generated $1.7 million in management fees (or 1.5% of revenue) from the operator, plus unspecified incentive fees as a percentage of profit.

a guest room at Transcorp Hilton Abuja a flagship property of transcorp hotels in nigeria
A guest room at Transcorp Hilton Abuja in Nigeria. Source: Transcorp Hotels.

Transcorp Hotels’ Expansion Plans

The hotelier has arranged about $110 million in financing and cash with partner Heirs Holdings to build a 300-room luxury hotel in the Ikoyi district of central Lagos.

By April, the flagship Transcorp Hilton Abuja aims to open a 500-seater capacity event center close to the hotel, which has just added a premium spa. The city’s new convention center, the 1,200-person capacity Congress Hall, is close to the property, too.

In 2021, Transcrop Hotels launched a homegrown listing marketplace for short-term apartment rentals and experiences. Entrepreneurs have posted more than 5,000 listings for short-term rentals, tours, activities, and restaurant reservations on the company’s mobile booking app, Aura.

The group has seen its stock price soar more than 1,000% in the past year and is one of the 10 largest companies by market capitalization on the national stock exchange.

“Expansion, expansion, expansion,” said Dupe Olusola, CEO and managing director. “That is the key focus for us.”

Dupe Olusola Managing DirectorCEO Transcorp Hotels source transcorp hotels

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.

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