Transcorp Hotels Plc, the hospitality arm of Transnational Corporation Plc, reported a higher profit for the first nine months of 2026 under Chairperson Awele Vivien Elumelu, as lower finance costs and tighter spending offset weaker revenue. The Abuja-based hotel operator increased earnings despite softer accommodation and food sales across its core business.

Profit rises as finance costs fall

Transcorp Hotels recorded a net profit of N15.54 billion ($11.7 million) for the nine months ended Sept. 30, up from N14.82 billion ($11.12 million) a year earlier, according to its unaudited financial statements. Pre-tax profit edged up to N22.53 billion ($16.89 million) from N22.4 billion ($16.8 million) in the corresponding period of 2025.

The improvement came as net finance costs fell 35 percent to N1.5 billion ($1.12 million) from N2.3 billion ($1.72 million), supported by N4.46 billion ($3.34 million) in finance income. Revenue, however, declined 3 percent to N69.46 billion ($52.09 million) from N71.3 billion ($53.47 million), putting greater emphasis on cost control.

Cost of sales fell to N16.15 billion ($12.11 million) from N17.26 billion ($12.94 million), while administrative expenses declined 2 percent to N29.32 billion ($21.99 million) from N29.86 billion. The reductions helped protect earnings as the company navigated softer revenue, lifting its net profit margin to about 22.4 percent from 20.8 percent a year earlier.

Hotel rooms remain the mainstay

Room accommodation remained Transcorp Hotels’ largest revenue source, generating N46.29 billion ($34.71 million), slightly below the N46.65 billion ($34.98 million recorded in the first nine months of 2025. Food and beverage revenue also weakened, falling to N19.27 billion ($14.45 million) from N21.02 billion, reflecting pressure across two core hospitality segments.

Revenue from event center hall rentals fell to N981.52 million ($736,020) from N1.15 billion ($863,790) a year earlier. The figures point to softer contributions from corporate events, even as Transcorp Hotels operates the Transcorp Hilton Abuja and its recently launched 5,000-seat Transcorp Centre, which expands its capacity to host conferences and large gatherings.

Ancillary services provide a lift

Some smaller business lines recorded stronger growth. Service charge revenue rose to N690.64 million ($517,890) from N396.82 million ($297,570), while recreation services increased to N443.25 million ($332,390) from N312.46 million. The gains provided additional support, although their contribution remained modest compared with accommodation and food sales.

Shop rental revenue held steady at about N1.36 billion ($1.02 million), while secretarial services revenue nearly doubled to N63.66 million ($47,730) from N32.41 million. Together, the figures show a mixed operating picture: the company’s core hospitality segments faced weaker sales, while selected ancillary services expanded and lower expenses helped sustain profit growth.

Assets climb to $155 million

Transcorp Hotels, which serves business travelers, diplomatic delegations and tourists, also expanded its balance sheet. Total assets rose 29 percent to N206.82 billion ($155.09 million) as of Sept. 30, 2026, from N159.91 billion ($119.91 million) at the end of December 2025, reflecting a larger asset base amid continued investment and business expansion.

Transnational Corporation Plc holds a 76.16 percent stake in the hotel operator, equivalent to 7,800,070,016 shares. Transcorp Hotels reported retained earnings of N79.76 billion ($59.81 million), up from N77.53 billion ($58.13 million) at year-end 2025. Shareholders’ equity attributable to owners rose to N97.78 billion ($73.32 million) from N95.45 billion ($71.57 million), strengthening the company’s equity base.

Cost discipline supports earnings

The first nine months of 2026 showed Transcorp Hotels protecting profitability despite a modest contraction in revenue. Lower finance costs, reduced operating expenses and growth in ancillary services helped lift net profit, while declines in room, food and event revenue underscored the need to sustain demand across its hospitality portfolio.

For Dr. Awele Elumelu, the nine-month results provide an early endorsement of her chairmanship, pairing bottom-line expansion with a significantly scaled balance sheet. The key test ahead is whether Transcorp Hotels can leverage its enlarged hospitality and events footprint to reignite revenue growth across rooms, dining, and corporate bookings without diluting the operating cost discipline that shielded margins this year.