Transcorp Hotels Increases Dividend by 270%

Transcorp Hotels Plc has announced a significant leap in shareholder returns, increasing its dividend payout by 270 percent to 74 kobo per share for the 2024 financial year.

This marks a steep rise from the 20 kobo paid in 2023, and reflects the company’s strong financial performance in a challenging economic environment.

Mr. Emmanuel Nnorom, Chairman of the company, disclosed this at the 11th Annual General Meeting held in Abuja recently. He explained that the final dividend of 64 kobo per share, amounting to N6.56 billion, follows an interim dividend of 10 kobo paid at mid-year. This brings the total dividend for 2024 to N7.57 billion.

Transcorp Hotels reported a profit before tax of N22.61 billion, representing a 138 percent increase compared to the previous year. Gross revenue for the year also surged to N70.13 billion, up from N41.46 billion recorded in 2023. Mr. Nnorom attributed the performance to improved pricing strategies, enhanced service delivery, and robust cost management practices.

Despite the challenges posed by inflation and fluctuating exchange rates, the company was able to navigate the terrain successfully. Mr. Nnorom noted that 2024 was a year defined by resilience and strategic positioning, which allowed the company to capitalise on market opportunities and deliver consistent value to both customers and investors.

The stock market responded positively to the company’s strong fundamentals, with Transcorp Hotels’ share price rising by 65 percent to close at N116 on December 31, 2024. This performance, according to Mr. Nnorom, cements the company’s position as one of the most attractive stocks on the Nigerian Exchange.

A major contributor to the year’s performance was the company’s continued investment in enhancing guest experiences. These included strategic upgrades across its facilities, the introduction of new culinary offerings, and improvements in service standards aimed at meeting international benchmarks. These initiatives have not only strengthened the brand’s reputation but also attracted a more diverse and global clientele.

Speaking on the company’s future outlook, Mrs. Uzoamaka Oshogwe, Managing Director/CEO of the company, emphasised that Transcorp Hotels is now entering a new phase of growth.

According to her, the strategy for 2025 will focus on scaling innovation, deepening customer engagement, and consolidating the company’s leadership in Nigeria’s hospitality industry.

“We are poised to unlock new opportunities, deliver exceptional value, and shape the future of hospitality in Nigeria and beyond,” she said.