Transcorp Hotels Plc reported a record nine-month profit as Nigeria’s hospitality sector boomed on surging demand for conferences, leisure stays, and events.
Profit after tax rose 45 percent year-on-year to N14.82 billion in the first nine months of 2025, compared with N10.24 billion a year earlier, according to its unaudited financial statement.
That’s almost the total amount the hospitality giant posted in the full year of 2024 at N14.89 billion and more than twice what it recorded two years ago at N6.25 billion.
Revenue climbed 49 percent to N72.31 billion from N48.49 billion in the same period of 2024, driven largely by its flagship Transcorp Hilton Abuja, which saw strong growth in room occupancy, food and beverage sales, and event hosting. Room revenue jumped to N48.05 billion from N31.87 billion, while food and beverage income surged 41 percent to N21.02 billion.
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The earnings surge highlights the post-pandemic rebound in Nigeria’s hospitality industry, buoyed by corporate events, tourism, and the depreciation of the naira, which has encouraged more domestic travel and conferences. “Our Q3 2025 results reflect our unwavering drive for excellence and our commitment to redefining hospitality in Africa,” said Chief Executive Officer Uzoamaka Oshogwe, who took office in January 2025.
“With the success of our newly commissioned 5,000-seat event centre, we are proud to be positioning Nigeria as the preferred destination for global conferences and events, while scaling sustainable value for our shareholders.”
Operating profit expanded 32 percent to N24.69 billion from N18.63 billion despite rising expenses. Total operating expenses rose 49 percent to N30.87 billion, reflecting higher staff costs, energy bills, and management fees to Hilton International, which earns 1.5 percent of revenue plus performance incentives.
Finance costs fell slightly to N2.80 billion from N2.93 billion, aided by lower borrowings and cost optimisation. Transcorp Hotels reduced its total interest-bearing debt to N10.62 billion as of September 2025, from N16.09 billion at the end of 2024, strengthening its balance sheet amid high domestic interest rates.
The company’s gross profit margin widened to 76 percent from 71 percent a year earlier, supported by strong pricing power and operational efficiency. Cash and bank balances rose to N12.33 billion from N8.60 billion in December 2024, while retained earnings swelled to N70.49 billion.
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Transcorp Hotels declared a combined N7.58 billion in dividends for the year, including a 10-kobo interim payout, underscoring its growing profitability and investor confidence. The company’s total assets stood at N154.25 billion, up from N140.70 billion at the start of the year.
Backed by Transnational Corporation Plc (Transcorp Group) and Heirs Holdings, the hospitality giant continues to expand through its digital platform, Aura by Transcorp Hotels, and new developments in Lagos and Port Harcourt. Management said it is banking on sustained business travel and tourism demand to maintain growth momentum into 2026.
Transcorp Hotels’ stock has gained 42 percent on the Nigerian Exchange this year to close trading on Monday at N164.6, reflecting investor optimism over the company’s earnings resilience and Nigeria’s domestic travel renaissance.