Transcorp Hotels, the hospitality branch of Transnational Corporation (Transcorp Group), a conglomerate owned by Nigerian businessman Tony Elumelu, announced a $200 million investment plan at its 10th Annual General Meeting (AGM) in Abuja.
The strategic endeavor includes the construction of a magnificent 315-room hotel in Lagos’ upmarket Ikoyi area, marking a watershed moment in Nigeria’s hospitality industry.
Dupe Olusola, managing director and CEO of Transcorp Hotels, stated that the massive investment is well aligned with the company’s strategic aim of improving Nigeria’s status as a leading destination for both business and leisure travelers.
The upcoming facility promises to set a new standard for hospitality excellence, with world-class amenities and services, cementing Transcorp Hotels’ status as an industry leader.
“We have acquired additional land, expanding the project’s footprint to 14,000 square meters,” Olusola said at the AGM. “This upcoming venture is scheduled to commence operations by 2027, setting a new standard for hospitality excellence in the region.”
In addition to the Ikoyi hotel construction, Transcorp Hotels is nearing completion of a cutting-edge event center with a 5,000-person capacity, set to open in August.
Olusola emphasized the center’s ability to reduce the outflow of large-scale events to neighboring countries such as Ghana, Egypt, and Morocco. This program intends to boost Nigeria’s economy by promoting Abuja as a top destination for international conferences and exhibits.
“Our objective is to redirect substantial business activity to Abuja and bolster the growth of the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector,” he said. “This initiative underscores our steadfast commitment to fostering economic prosperity and job creation in Nigeria.”
Transcorp, led by Nigerian business billionaire Tony Elumelu, is the country’s leading conglomerate, with diverse holdings in hospitality, power, oil, and gas. Elumelu, through HH Capital, owns a 29.5% stake in Transcorp, which translates to 11,990,957,350 ordinary shares of the corporation.
Transcorp Hotels, Transcorp’s hospitality business, continues to lead the transformation of Nigeria’s hospitality industry. The $200 million investment at the Ikoyi hotel is a watershed moment as it aims to redefine premium hospitality standards while also contributing to the country’s economic prosperity.
In 2023, the company’s gross revenue increased by 36% year on year to N41.5 billion ($30.28 million), up from N31.4 billion ($22.91 million) in the previous year. Gross profit increased 37% to N29.8 billion ($21.75 million), while profit before taxes increased 105 percent to N9.5 billion ($6.93 million).
Olusola attributes the company’s success to its emphasis on cost-cutting initiatives and revenue optimization tactics. Notably, Transcorp Hotels’ sale of its stake in Transcorp Hotels Calabar Limited to Eco Travels & Tours Limited represents a strategic move toward solidifying its presence in Abuja and capitalising on development potential in Lagos, notably in conjunction with the renowned Transcorp Hilton Hotel.
