Transcorp Hotels CEO speaks on sector's pandemic recovery, expansion plans

Transcorp Hotels has recently announced a significant increase in both revenue and profits for the year 2022, despite facing challenges brought about by the COVID-19 pandemic. The MD and CEO of Transcorp Hotels, Dupe Olusola, attributes this growth to the full-fledged return of the company's International Business Travel Segment and strong leisure demand. The company saw a 47% rise in revenues, reaching 31.4 billion Naira, and a 172% increase in profits, totaling 4.5 billion Naira. This positive financial performance can be credited to the strategic efforts made by the hotel to diversify its segments and invest substantially in technology. At the onset of the pandemic, Transcorp Hotels experienced a dramatic decline in occupancy rates, plummeting from 70% to a mere 5% in March 2020. However, rather than succumb to the challenges, the hotel management took a proactive and innovative approach to adapt to the changing landscape. One of the notable initiatives was the launch of a new business called Ora by TransCorp Hotels, which offered travel and hospitality accommodation through an app service in over 30 states in Nigeria. This move, alongside significant investments in technology, allowed the hotel to stay at the forefront of its guests' minds and enhance the overall guest experience. One of the critical operational challenges faced by Transcorp Hotels, like many players in the hospitality industry, is the high cost of energy. Despite this burden, the hotel has been diligent in managing operational expenses by implementing innovative strategies to reduce energy consumption. By constantly challenging themselves to find cost-effective solutions, the team at Transcorp Hotels has successfully navigated through these challenges while maintaining efficiency and discipline in cost management. Looking ahead, Transcorp Hotels is focused on sustainability and digital transformation as key pillars for their expansion plans. The company is preparing to introduce Transcorp Hilton Ikoyi, a five-star hotel that will incorporate health and fitness facilities and sustainable practices on over 2,500 square meters of newly acquired land. By emphasizing energy and digital transformation, the hotel aims to enhance operational efficiency, adapt to evolving customer needs, and drive down costs. The incorporation of more digital solutions will not only improve customer experience but also contribute to overall operational efficiency. In conclusion, Transcorp Hotels' remarkable financial performance amidst the pandemic challenges is a testament to the strategic vision and resilience of the company. By embracing innovation, diversification, and a customer-centric approach, Transcorp Hotels has positioned itself for sustainable growth and expansion in the dynamic hospitality industry.