BusinessEntertainment

GCR Affirms Transcorp Hotels Plc’s Rating Of A-(NG); Outlook Stable

98

Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp) and owner of the iconic Transcorp Hilton Abuja and Transcorp Hotels Calabar, has retained its national scale ratings at A-(NG) and A2(NG) in the long term and short term respectively, with the outlook accorded as Stable. Concurrently, the national scale ratings accorded to the following Issuances were also affirmed:

 

•       Series 1 N10bn Fixed Rate Bond:    A-(NG), Stable Outlook

•       Series 2 N9.8bn Fixed Rate Bond:    A-(NG), Stable Outlook

 

Global Credit Ratings (“GCR”) established as the African Arm of the New York Stock Exchange-listed Duff & Phelps is a leading international emerging markets focussed rating agency.

 

According to GCR, the rating reflects Transcorp Hotels ability to maintain its market position as a leading brand in Nigeria’s hospitality industry, supported by the major renovation and facilities upgrade at Transcorp Hilton Abuja (‘THA’) and the subsequent improvement in pricing and occupancy rate. The available support to Transcorp Hotels as a member of Transnational Corporation of Nigeria Plc (“Transcorp”), and the partnership with Hilton Worldwide Limited (“Hilton”) is considered a rating positive.

 

 

 

In the report released in August of 2019, it stated “Following the upgrade at THA and the accompanying repricing of the hotel facilities in FY18, revenue improved across all service lines, with rooms and food and beverages rising 26% and 28% respectively. Per management, the Company is currently exploring other opportunities and add-on services that could be offered to boost overall earnings going forward.  The average occupancy rate in 1Q FY19 stood at about 61%, albeit still well ahead of the industry average of 53%. Revenue from room lodging grew by a moderate 5% YoY in 1Q FY19, while food and other services rose 18% and 23% respectively. ”

 

GCR in its report affirmed that Transcorp Hotels demonstrated a stable outlook in its businesses and the ability to maintain a positive rating in the longer term.

Leave a comment

Related Articles

Femi Adebayo to Dayo Amusa: If my success bothers you, you’ll never find peace

Nollywood star Femi Adebayo has addressed the recent tension between his wife,...

Updated: We raised interest rate to 24.75 percent to fight inflation – CBN

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN)...

Don’t sell dollar above N1,269, CBN orders Bureau de Change

As part of measures to strengthen the naira against the dollar, the...

Bobrisky’s Best-Dressed win sparks outrage in Nollywood, divides Yoruba actresses

Confusion and anger have pervaded the ranks of Yoruba actresses following the...

K1 breaks silence on alleged maltreatment of band members

Nigerian music legend, KWAM1, whose real name is Wasiu Ayinde Marshal, has...

10th AMVCA: Layi, Taooma, Lizzy Jay, Elozonam bag nominations in Best Digital Content Category

The unveiling of the nominees for the Digital Content Category, which showcased...

Nollywood mourns loss of iconic actor Amaechi Muonagor at 61

The Nigerian film industry, Nollywood, has been thrown into grief as news...

Amaechi Muonagor, Veteran Actor exits as he loses battle with kidney disease

Veteran Nollywood actor, Amaechi Muonagor who less than two weeks ago called...

Dangote set to disburse N15bln food items to 774 LGAs to cushion harsh economic conditions

Nigerian businessman and industrialist Alhaji Aliko Dangote says he has allocated N15...

Ebenezer Obey to mark his 82nd birthday with the masses, offers free medical outreach, palliatives

Music legend, Evangelist Ebenezer Obey-Fabiyi, has concluded plans to join the government...

Breach of contract: Davido bows to pressure, agrees to pay Amaju Pinnick N30m

Nigerian singer David Adeleke, widely known as Davido, has opted to settle...

My philanthropy speaks louder than social media—Burna Boy

Nigerian music sensation and Grammy Award-winning artiste Burna Boy has reacted to...

Gospel according to Bez: Chart-topping artiste shifts focus from secular to gospel music

After several years of absence from the Nigerian music scene, where he...

Birthday surprise: Emeka Ike embraces fatherhood again with birth of baby girl

Renowned Nollywood actor Emeka Ike celebrated a double blessing on Thursday as...

Why I relocated my mother’s resting place 17 years after—Portable

Renowned Nigerian artist Habeeb Okikiola, popularly known as Portable, has addressed the...

Davido hits back at detractors, declares 2024 “Year of the Beast”

Nigerian music sensation David Adeleke, popularly known as Davido, has addressed ongoing...

Naira strengthens to N1400/$ at parallel market as speculators sell

The naira strengthened on Wednesday to close at N1400/$1 in the parallel...

It’s all rumour, I didn’t collapse in London, I’m hale and hearty – Taye Currency

Fuji music star Taye Akande Adebisi, also known as Taye Currency, has...

Just In: Zenith Bank names Adaora Umeoji as its first female Group Managing Director

The Board Directors of Zenith Bank Plc has announced the appointment the...