Transcorp Hotels Plc, the hospitality subsidiary of Transnational
Corporation of Nigeria Plc (Transcorp) and owner of the iconic Transcorp
Hilton Abuja and Transcorp Hotels Calabar, has retained its national
scale ratings at A-(NG) and A2(NG) in the long term and short term
respectively, with the outlook accorded as Stable. Concurrently, the
national scale ratings accorded to the following Issuance were also
affirmed:
• Series 1 N10bn Fixed Rate Bond: A-(NG), Stable Outlook
• Series 2 N9.8bn Fixed Rate Bond: A-(NG), Stable Outlook
According to GCR, the rating reflects Transcorp Hotels ability to
maintain its market position as a leading brand in Nigeria’s hospitality
industry, supported by the major renovation and facilities upgrade at
Transcorp Hilton Abuja (‘THA’) and the subsequent improvement in pricing
and occupancy rate. The available support to Transcorp Hotels as a
member of Transnational Corporation of Nigeria Plc (“Transcorp”), and
the partnership with Hilton Worldwide Limited (“Hilton”) is considered a
rating positive.
In the report released in August of 2019, it stated “Following the
upgrade at THA and the accompanying repricing of the hotel facilities in
FY18, revenue improved across all service lines, with rooms and food and
beverages rising 26% and 28% respectively. Per management, the Company
is currently exploring other opportunities and add-on services that
could be offered to boost overall earnings going forward. The average
occupancy rate in 1Q FY19 stood at about 61%, albeit still well ahead of
the industry average of 53%. Revenue from room lodging grew by a
moderate 5% YoY in 1Q FY19, while food and other services rose 18% and
23% respectively. ”
GCR in its report affirmed that Transcorp Hotels demonstrated a stable
outlook in its businesses and the ability to maintain a positive rating
in the longer term.