Transcorp Hotels posted a profit before tax of N10.5 billion in the first half of 2024, a remarkable 188% increase from N3.6 billion in the same period of 2023. According to its unaudited financial statements, the company’s revenue grew by 61% YoY to N29.7 billion from N18.5 billion in H1 2023. Net profit saw a 169% YoY growth, reaching N6.6 billion compared to N2.5 billion in H1 2023.
In the second quarter of 2024, however, Transcorp Hotels experienced a 22% YoY decline in net profit, recording N1.6 billion compared to N2.04 billion in Q2 2023. Despite the quarterly dip, key highlights for H1 2024 include a gross profit of N21.2 billion and operating profit of N12.1 billion. The company also benefited from a N3.9 billion unrealized FX gain.
The bulk of revenue was generated from room services, which brought in N19.7 billion, a 60% increase from H1 2023. Food and beverage services contributed N8.7 billion, up 72% YoY. However, operating expenses rose by 51% YoY to N13.3 billion due to increased energy and hospitality costs.
In February 2024, Transcorp Hotels sold Transcorp Hotels Calabar, receiving about N308 million in proceeds, although the financial statements valued the deal at approximately N2.5 billion. The company has a total loan portfolio of N21.9 billion, with N3.48 billion due in August 2024.