Transcorp Hotels Plc, under the leadership of Tony Elumelu, is set to establish its presence in Lagos with the construction of the Transcorp Hotel Ikoyi Lagos. The upcoming 20-story property, slated for completion in 2027, aims to offer 315 rooms, positioning itself as a formidable competitor to industry giants like Marriott and Sheraton.
The project, which faced delays in its development, has now resumed construction after overcoming various challenges. With 90% of the company’s current revenue stemming from its Abuja property, known as Transcorp Abuja, the Lagos venture marks a strategic move to diversify earnings and expand its footprint in the hospitality sector.
Dupe Olusola, the Managing Director and Chief Executive Officer of Transcorp Hotels Plc, emphasized the significance of the Lagos expansion, highlighting its potential to drive revenue growth and enhance the firm’s position in the hospitality market. Financing options, including equity and debt, are being explored to support the development of the Lagos hotel.
In line with its growth strategy, Transcorp Hotels recently divested its loss-making Transcorp Hotel Calabar to a new investor. The company’s audited 2023 full-year results showcased remarkable performance, with record-breaking revenue reaching N41.5 billion, a substantial 36% increase compared to the previous year. Additionally, profit for the year surged by 133%, reaching N6.1 billion, while total assets saw a five percent rise, reaching N126.1 billion by December 2023.
Tony Elumelu’s entrepreneurial success continues to inspire admiration, with Transcorp Hotels Plc serving as a testament to his visionary leadership and strategic business acumen. The expansion into Lagos represents another milestone in Elumelu’s journey, solidifying his reputation as a trailblazer in the Nigerian business landscape.
