Naira gains will reduce operating costs, says Transcorp Hotels

Transcorp Hotels Plc says naira gains will reduce the operating costs of the company.

Speaking during the company’s full-year (FY) 2023 investors call on April 19, Dupe Olusola, managing director of Transcorp Hotels, also said the hospitality business is dynamic in terms of its room pricing.

The naira has been on a recovery run since it traded at N1,900 to the dollar at the parallel section of the foreign exchange (FX) market and N1,551.24/$ in the official window on February 21.

As of April 19, the naira traded at N1,230/$ at the parallel market while FMDQ Exchange, a platform that oversees official FX trading in Nigeria, said the local currency traded at N1,169.99/$.

According to Olusola, the management is working “on addressing the increase in the market” amid naira recovery.

“We remain dynamic in terms of our room pricing. We are able to ensure that we actually address the increase in the market in terms of the operational increase in terms of pricing and to ensure that we remain dynamic not to overburden our guests but to make sure that our pricing is quite fair and that we also remain competitive in the pricing,” Olusola said.

“In terms of naira gaining as well, it makes sure that we are also able to reduce our operating costs and this is also important as we continue to run operationally in terms of efficiency and keep an eye on our costs.”

Olusola also said selling Transcorp Hotels Calabar Limited to Eco Travels and Tours Limited was a strategic exit to allow the company to focus strongly on expansion.

“In terms of acquisition plan, we’re going to be very focused on growing the businesses, not necessarily through acquisition, but actually starting our projects and events centre is the first one mentioned, Lagos. Ikoyi is one that is also going to be key in terms of priority, and we are looking at other markets including in Port Harcourt as well for expansion,” she said.

On April 18, Transcorp Hotels said it would focus on Abuja and develop opportunities in Lagos.