By Babajide Komolafe
Transcorp Hotels Plc, last weekend, said that it intends to raise N10 billion through a right issue while it focuses on cost optimization strategies to cope with the impact of the COVID-19 on the hospitality industry.
Chief Executive Officer, Transcorp Hotels Plc, Dupe Olusola, disclosed during a virtual press briefing on the half year performance of the company.
Speaking on how the COVID-19 restrictions impacted the operations of the company, Olusola said: “In the quarter ended June 2020, TranscorpHotels’ room revenue fell to N3.03 billion compared to the N5.88 billion in the same period in 2019 while our losses have been on a month-to-month basis at over N1 billion. Hence, we will be in a loss position at the end of 2020 as we are deeply challenged and we can only hope a vaccine will be found to drive out the pandemic”.
Noting that innovation and adaptability are the keys to sustaining the hotel business, she disclosed that the company is working on cost optimization as well as survival strategies to ensure its sustainability and look at different initiatives in the next financial year.
Furthermore, she added said the company would consider raising N10 billion in form of rights issue in order to strengthen its balance sheet. She stated: “One of the key things we did was engage with our lenders to see how we can get reductions in our interest payment and we got positive responses from some of them. We are considering to raise N10 billion in form of rights issue in order to strengthen our balance sheet.”
We are a strong organisation and we are optimistic and we are working on a day-to-day basis to bring innovative solutions to our customers”.