Transcorp Hotels Plc., a subsidiary of Nigerian Conglomerate Transnational Corporation Plc. (Transcorp Group), has announced the sale of its Calabar unit, which has recorded losses in the last two years.
Transcorp said Thursday it was divesting its 100 percent ownership in the Calabar business, and the buyer is Eco Travels and Tours Limited, an indigenous hospitality company.
Details of the transaction were not disclosed.
What’s behind the move:
Transcorp Hotels said it would concentrate on its core markets of Abuja and Lagos, but its decision to sell Calabar likely factors in past financial results for the Calabar unit.
Transcorp’s 2023 financial statements reveal that Transcorp Hotels Calabar has been a loss-making entity for the past two years. The hotel declared a N269.3 million loss after tax in 2022, and a further N188.1 million loss in 2023.
Additionally, the unit’s assets depreciated from N2.1 billion in 2022 to N1.93 billion in 2023.
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Transcorp’s financial statement also confirms that the company obtained the necessary approval from the Federal Competition & Consumer Protection Commission (FCCPC) for the divestment.
Similarly, the Securities and Exchange Commission (SEC) noted the proposed divestment, in line with the voluntary notification to the Commission.
Transcorp acquired the 146-room Metropolitan Hotel, Calabar, in June 2010 and rebranded it to Transcorp Hotels Calabar.
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