Transcorp Hotels Plc Hard Hit by COVID-19; Restructuring Inevitable

Proshare

Saturday, September 19, 2020   / 05:37PM / Press Release By Transcorp / Header Image Credit: Transcorp Hotels

 

Highlights

  •  To restructure business strategy;
  • To diversify into asset-light business models; and
  • To reduce workforce.

 

The novel COVID-19 pandemic has caused the African Hotel and Tourism industry to lose over $50bn in revenue. Amidst this, Transcorp Hotels Plc has suffered unprecedented losses and is looking to restructure the business strategy of its hotels and optimize its operations. 

 

The management of Transcorp Hotels Plc has announced that it will be taking steps to ensure business continuity in the wake of the losses recorded due to the COVID-19 pandemic. To this end, the hotelier is diversifying its portfolio and reducing its workforce as part of its cost management initiatives.  

 

Proshare Nigeria Pvt. Ltd.


The Managing Director, Transcorp Hotels Plc , Mrs Dupe Olusola, disclosed this during a Press Conference on Thursday saying "The impact of COVID-19 on the business is like nothing the company has ever witnessed. The hotel and hospitality industry in Nigeria has never faced a crisis that brought travel to a standstill, including the Ebola Virus Outbreak of 2014 and the recession of 2015. The slow pick up of international travel, restriction on large gatherings, the switch to virtual meetings and fear of the virus, has drastically reduced demand for our hotels and occupancy levels to its lowest of less than 5%."

 

Visit Transcorp Hotels Plc IR Page in Proshare MARKETS


 

Proshare Nigeria Pvt. Ltd.


 

According to her "Despite the losses incurred we have fulfilled our obligations to staff. At the inception of the pandemic, we maintained a 100% salary payment to our over 900 employees in March and April. We also activated various cost-saving initiatives such as renegotiations of service contracts and restructuring of our loans. We suspended further commitment to buy fixed assets and operating equipment as well as reducing our energy consumption and maintenance costs. Despite undertaking these, it has become apparent that more fundamental changes need to be made for the business to survive. To this end, our workforce headcount will be reduced by at least 40%, and our reward system will be optimized."

 

Mrs Olusola further disclosed that negotiations are ongoing to ensure that our colleagues who will be impacted are adequately compensated given the peculiarities of the economy at this time. A health insurance package to reduce their health burden costs, especially during the pandemic, amongst other payment settlements, will be activated. Equally, all Executives of Transcorp Hilton Abuja have now taken a pay cut. 

 

As one of the leading hospitality brands in Africa,  Transcorp Hotels Plc  has stated its commitment to uphold service standards and ensure that all guests continue to experience the warmth and hospitality that it is known for.  



 Proshare Nigeria Pvt. Ltd.


 

Related News

1.      Transcorp Hotels Submits an Application for the Approval and Listing of a Rights Issue of 2.65bn - July 15, 2020

2.     Transcorp Hotels Gets Shareholders' Approval to Raise N10bn through Rights Issue - June 30, 2020

3.      TRANSCORP Appoints Mrs Foluke Abdulrazaq As Vice Chairman...

4.     TRANSCORP Declares N957m Total Comprehensive Loss in Q1 2020 Results SP N0.72k

5.      TRANSCORP To Hold Its 14th Annual General Meeting Virtually...

6.     TRANSCORP Notifies of Board Meeting...

7.      TRANSCORP To Hold 14th AGM on April 28 2020...

8.     TRANSCORP Postpones AGM Due to COVID-19 Outbreak

9.     TRANSCORP To Hold Its 14th AGM On March 25, 2020

10.  TRANSCORP Declares N3.7bn PAT in 2019 Audited Results, (SP: N0.88k)

11.   Transcorp Group Announces Significant New Executive and Non-Executive Board Appointments

12.   Transcorp Hotels Fulfils Post-Privatization Obligations - Oct 15, 2019

13.   Transcorp Hotels Plc Notifies of the Appointment of Mr. Alexander Adeyemi as Non-Executive Director - July 16, 2019

14.   TRANSCOHOT Declares N296.81mln PAT in Q1'19 results (SP: N5.40k)

15.   TRANSCOHOT Notifies of the Company's Closed Period

16.   TRANSCOHOT Announces Board Meeting and Closed Period

17.   TRANSCOHOT Declares N1.38bn PAT in Q2 2018 Results (SP: N6.75k)

18.  TRANSCOHOT to Hold Its Board Meeting on 24th of July, 2018

19.   TRANSCOHOT Declares N593.62m PAT in Q1'18 result, (SP: N7.45k)

20. TRANSCOHOT Declares N2.68bn PAT in 2017 Audited Result; Proposes 12.45kobo per share Dividend

21.   TRANSCOHOT Declares N1.15 Bln PAT in Q3’17 result, (SP: N7.21k)

22.  Transcorp Hotels Plc Appoints Mr Abdulqadir Jeli Bello as a Non-executive Director

23.  Transcorp Hotels Plc Announces Changes on its Board

24.  Transcorp Hotel Plc Announces Closed Period

25.  TRANSCOHOT Declares N757.63 million PAT in Q2'17 result, (SP: N6.87k)

26.  Transcorp Hotels Appoints New Director

 

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

READ MORE:
Related News
SCROLL TO TOP