Nigerian tycoon Tony Elumelu’s Transcorp Hotels to invest $200 million in Ikoyi hotel

Transcorp Hotels, the hospitality arm of Transnational Corporation (Transcorp Group), a conglomerate led by Nigerian businessman Tony Elumelu, unveiled an ambitious $200-million investment plan during its 10th Annual General Meeting (AGM) in Abuja.

The strategic initiative entails the development of a lavish 315-room hotel in Lagos’ upscale Ikoyi neighborhood, marking a significant milestone in Nigeria’s hospitality sector.

Ambitious project aligned with strategic vision

Dupe Olusola, managing director and CEO of Transcorp Hotels, revealed that the colossal investment aligns seamlessly with the company’s strategic vision of elevating Nigeria’s stature as a premier destination for both business and leisure travelers.

The forthcoming establishment vows to establish a new pinnacle of hospitality excellence, boasting world-class amenities and services, thus fortifying Transcorp Hotels’ position as a frontrunner in the industry.

“We have acquired additional land, expanding the project’s footprint to 14,000 square meters,” Olusola announced during the AGM. “This upcoming venture is scheduled to commence operations by 2027, setting a new standard for hospitality excellence in the region.”

Transcorp Hotels expands footprint, targets MICE sector growth

In addition to the Ikoyi hotel development, Transcorp Hotels is nearing completion of a state-of-the-art event center with a 5,000-person capacity, slated for inauguration in August.

Olusola highlighted the center’s potential to curb the outflow of large-scale events to neighboring countries like Ghana, Egypt, and Morocco. This initiative aims to bolster Nigeria’s economy by positioning Abuja as a preferred venue for international conferences and exhibitions.

“Our objective is to redirect substantial business activity to Abuja and bolster the growth of the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector,” asserted Olusola. “This initiative underscores our steadfast commitment to fostering economic prosperity and job creation in Nigeria.”

Visionary leadership driving transformative change

Under the leadership of Nigerian business magnate Tony Elumelu, Transcorp continues to lead Nigeria’s conglomerate landscape with diversified holdings across hospitality, power, oil, and gas. Elumelu, through HH Capital, owns a 29.5-percent stake in Transcorp, translating to a total of 11,990,957,350 ordinary shares of the conglomerate.

Transcorp Hotels, the hospitality arm of Transcorp, remains at the forefront of transforming Nigeria’s hospitality industry. The $200 million investment in the Ikoyi hotel marks a pivotal moment as it seeks to redefine luxury hospitality standards and contribute to the nation’s economic growth.

Transcorp Hotels’ revenue up 36 percent

The company achieved an impressive 36 percent year-on-year increase in gross revenue in 2023, reaching N41.5 billion ($30.28 million) compared to N31.4 billion ($22.91 million) the prior year. Gross profit surged 37 percent to N29.8 billion ($21.75 million), while profit before tax soared 105 percent to N9.5 billion ($6.93 million).

Olusola attributes this success to the company’s focus on cost-efficiency measures and revenue optimization strategies. Notably, Transcorp Hotels’ divestment of its stake in Transcorp Hotels Calabar Limited to Eco Travels and Tours Limited signifies a strategic shift towards consolidating its presence in Abuja and capitalizing on growth opportunities in Lagos, particularly alongside the iconic Transcorp Hilton Hotel.