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October 8, 2025 - 5:55 AM

Transcorp Hotels Reports a Half-Year Profit Rise of 188% in 2024

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In the first half of 2024, Transcorp Hotels reported a profit before tax of N10.5 billion, an 188% increase over the N3.6 billion reported at the same time in 2023.

The group’s unaudited financial results for the first half of 2024 contained this information.

Transcorp Hotel reported N29.7 billion in revenue for the first half of 2024, a 61% YoY increase over the N18.5 billion reported for the same period in 2023.

Additionally, it reported a 169% YoY increase in net profit, with N6.6 billion reported as opposed to N2.5 billion in H1 2023.

Transcorp Hotel posted a net profit of N1.6 billion in the second quarter of 2024, a 22% YoY decrease from the N2.04 billion reported in the same period of 2023. This indicates that Q2 2024 was not as profitable as Q2 2023.

Comparing H1 2024 with H1 2023: Key Points

  • Revenue: N29.7 billion, up 61% YoY
  • Cost of sales: N8.5 billion, up 71% YoY
  • Gross profit: N21.2 billion, up 57% YoY
  • Gross margin: 71%, down 200 bps YoY
  • Operating profit: N12.1 billion, up 116% YoY
  • Operating margin: 41%, down 11 percentage points YoY
  • Profit before tax: N10.5 billion, up 188% YoY
  • Profit for the period: N6.6 billion, up 169% YoY
  • Earnings per share: N0.65, up 171% YoY
  • Total assets: N136.8 billion, up 8.5% YTD

The majority of the group’s income throughout the review period came from rooms. In H1 2024, the group reported N19.7 billion from rooms, a 60% increase over the N12.3 billion reported in H1 2023. Additionally, food and beverage revenue came in at N8.7 billion, a 72% increase over N5.0 billion in H1 2023.

Since the group’s room services had an 85% gross margin, its rooms constituted the primary source of its gross profit.

Transcorp Hotel’s net operating income for the period was N4.2 billion, which included an unrealized foreign exchange gain of N3.9 billion. The organization paid almost N1.4 billion in interest on loans and obligations, which is less than the N1.8 billion it paid in H1 2023.

The energy costs of the Transcorp Hotel rose by 81% YoY from N1.2 billion in H1 2023 to N2.2 billion in H1 2024. Additionally, as of H1 2023, the group’s hospitality costs increased by 129% to N2.43 billion from N1.06 billion.

Due to these, operating expenses increased by 51% YoY to N13.3 billion in H1 2024 from N8.8 billion in H1 2023.

Currently, Transcorp Hotels has a credit portfolio worth over N21.9 billion, of which approximately N3.48 billion is due in August of the current year.

Transcorp Hotels Calabar’s disposal

Remember that Transcorp Hotels announced in February 2024 that Transcorp Hotels Calabar was being sold in its entirety. The firm is expected to receive around N308 million in sales proceeds in the first half of 2024.

Nonetheless, the financial documents indicated that the sale was worth roughly N2.5 billion.

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