Nigerian tycoon Tony Elumelu’s Transcorp Hotels sells entire stake in Calabar unit

Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp), a conglomerate led by Nigerian businessman Tony Elumelu, has announced the sale of its entire equity interest in Transcorp Hotels Calabar Limited to Eco Travels and Tours Limited, an indigenous hospitality company.

This move underscores Transcorp Hotels’ commitment to prioritizing its presence in Abuja, Nigeria’s capital city, and its ongoing investment in the iconic Transcorp Hilton Hotel, along with development opportunities in Lagos. The divestiture aligns with the company’s strategic vision to enhance operational efficiency and concentrate resources on key growth areas.

Transcorp Hotels realigns for growth

With Dupe Olusola at the helm as the managing director and CEO of Transcorp Hotels, the decision to divest from Transcorp Hotels Calabar follows the authorization of its board and management.

As Transcorp Hotels streamlines its operations and concentrates on expanding its footprint in key cities, it also aims to leverage its business strategies and capitalize on new opportunities to deliver greater value to stakeholders, building upon its impressive 36-percent revenue growth as reported in its 2023 audited financial statements.

Transcorp: Diversification drives success

Led by Nigerian business magnate Tony Elumelu, Transcorp is a leading Nigerian conglomerate with diversified holdings across hospitality, power, oil, and gas. Elumelu, through his investment firm HH Capital, maintains a significant stake in Transcorp, reflecting his commitment to African advancement and shareholder value creation.

The recent decision to sell Transcorp Hotels Calabar exemplifies a wider consolidation trend within the Nigerian hospitality sector. As Transcorp Hotels pursues its strategic goals, the divestiture not only frees up capital for strategic investments but also positions the company for growth opportunities.