COVID-19 lockdown: Transcorp Hotels records huge loss of revenue

Per Second NewsSeptember 18, 2020129

Transcorp Hotels Plc, a major player in the nation’s hospitality industry, says it has lost huge, unprecedented revenue following the COVID-19 pandemic.

Consequently, salaries of all Executives of Transcorp Hilton Abuja have been cut.

The Managing Director of Transcorp Hotels Plc, Mrs Dupe Olusola, who disclosed this at a news conference on Thursday in Abuja, said the losses had forced the management to restructure the business strategy of its hotels and optimize its operations.

She said the African Hotel and Tourism industry had lost more than $50 billion to the pandemic.

Olusola restated that as one of the leading hospitality brands in Africa, Transcorp Hotels Plc would uphold it’s high service standards and ensure that all guests continue to experience the warmth and hospitality that it is known for.

“The management of Transcorp Hotels Plc will be taking steps to ensure business continuity.

“To this end, the hotelier is diversifying its portfolio and reducing its workforce as part of its cost management initiatives. The impact of COVID-19 on the business is like nothing the company has ever witnessed,” Olusola said.

She also said:”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 per cent.”

According to her, despite the losses incurred the hotel was able to fulfill its 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,” she explained.

Olusola said negotiations were ongoing to ensure that affected workers 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, she promised.