Transcorp Hotels Plc, the hospitality arm of Transnational Corporation Plc, has etched its name in history as the first hospitality group in Nigeria to surpass the N1 trillion market capitalization threshold.
This remarkable achievement not only solidifies Transcorp Hotels’ position as an industry leader but also catapults it into the exclusive league of SWOOTs (Stocks Worth Over One Trillion) group.
The announcement came on January 10, 2023, following a significant 7.24% surge at the Nigerian Exchange (NGX), closing the share price at N100 and propelling the market capitalization to an impressive N1.024 trillion.
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Transcorp Hotels has been on a stellar trajectory, showcasing outstanding performance in the Nigerian Exchange (NGX) over the past year. Emerging as the best-performing stock in 2023, the company witnessed an astronomical yearly gain of 1022.9%, concluding the year with a market cap of N718.8 billion. This phenomenal accomplishment marked a staggering increase of N654.8 billion from the modest N64 billion recorded at the beginning of 2023.
The momentum continued into 2024, with Transcorp Hotels maintaining an impressive market growth, boasting a remarkable 42.5% increase year-to-date. In this year alone, the company’s market capitalization has surged by a substantial N305.43 billion, reflecting sustained investor confidence and market dominance.
Transcorp Hotels Plc earned its place among esteemed entities in the SWOOT group during the week ending January 12, 2023. This exclusive group, now comprising eleven companies listed on the NGX with a market cap exceeding N1 trillion, includes notable names such as Airtel Africa, Dangote Cement, MTN Nigeria, BUA Foods, BUA Cement, GTCO Holdings, Seplat Energy, Zenith Bank, United Bank for Africa, and FBN Holdings.
This induction into the SWOOT group further underlines Transcorp Hotels’ significance in the Nigerian business landscape, placing it among the elite companies driving the nation’s economic prosperity.
In the financial arena, Transcorp Hotels demonstrated resilience and robust growth during the first nine months of 2023. The company reported an impressive revenue of N29.85 billion, marking a substantial 32% increase year-on-year from the corresponding period in 2022.
Additionally, Transcorp Hotels recorded a net income of N4.07 billion during the same period, representing a remarkable 79% increase year-on-year. These figures not only highlight the company’s operational prowess but also signal its ability to navigate and thrive in dynamic market conditions.
Transcorp Hotels operates as a subsidiary of Transnational Corporation Plc, with the latter holding a commanding 76.15% stake in the hotel. Notably, the Federal Government of Nigeria also maintains an 11.04% stake in the company. Under the astute leadership of Dupe Olusola, Transcorp Hotels manages key establishments such as Transcorp Hilton Abuja and Transcorp Hotels, Calabar. Additionally, the company has expanded its reach through the online platform, Aura by Transcorp.
Transcorp Hotels’ ascent to the SWOOTs group and crossing the N1 trillion market cap mark is not merely a numerical achievement but a testament to its strategic vision, operational excellence, and investor appeal. The conglomerate is expected to continue to shape the future of Nigeria’s hospitality sector by maintaining its current form amid Nigeria’s biting economic challenges.