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Transcorp Hotels Declares N686.5m Loss in Q1 2020

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Transcorp Hotels

By Dipo Olowookere

One of the leading hospitality organisations in the country, Transcorp Hotels Plc, started the year on a rather wrong note, recording a loss in the first three months of 2020.

The coronavirus pandemic, which originated from the Wuhan city of China last December, has had a huge toll on the global economy this year and the travel/tourism sector remains one of the most affected.

Flights have been grounded due to the closing of airports around the world, while some hotels have been converted into isolation centres to cater for those infected with the virus.

In its Q1 2020 results, Transcorp Hotels said its revenue was flat at N4.2 billion over the comparative periods, while the cost of sales increased to N1.2 billion from N1.1 billion in Q1 2019, with gross profit slightly down to N3.0 billion from N3.1 billion.

However, the company said there was an improvement in the other operating income, which closed at N129.5 million, higher than N80.0 million in the corresponding period of last year.

But the operating profit was not lucky as it went down to N660.7 million in the first three months of this year from N1.1 billion in the first three months of last year.

During the period under review, Transcorp Hotels said there was a spike in its administrative expenses to N2.5 billion from N2.1 billion in the same time of last year, with the net finance costs also rising to N1.4 billion from N673.5 million.

According to the results analysed by Business Post, Transcorp Hotels recorded a loss before tax of N686.5 million in Q1 2020 compared with a profit before tax of N436.5 million in Q1 2019.

Also, the firm printed a loss after tax of N686.5 million in contrast to the profit after tax of N296.8 million in the same time of last year, while the earnings per share closed at negative in this period at -9 kobo versus 4 kobo of Q1 2019.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Travel/Tourism

Landmark Group to Operate Nike Lake Resort Enugu for 35 Years

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Nike Lake Resort Hotel

By Aduragbemi Omiyale

A deal has been sealed between the Enugu State government and the Landmark Group for the transformation of the Nike Lake Resort Hotel.

The company, owned by serial investor, Mr Paul Onwuanibe, will revamp the facility and operate for 35 years on lease.

The Governor of Enugu State, Mr Peter Mbah, expressed optimism that Landmark Group would use the hotel to boost tourism sector of the state.

He explained that his administration decided to work with Mr Onwuanibe’s organisation as part of his commitment to transforming Enugu into a global destination for investment and tourism, noting that Nike Lake Resort remains a key government asset that need efficient management to flourish.

“Nike Lake Resort is not just a hotel; it is a symbol of Enugu’s hospitality and tourism potential.

“This partnership reflects our vision to create an environment that fosters investment, job creation, and economic growth,” Mr Mbah remarked.

The Governor said Nike Lake Resort Hotel could position Enugu as a preferred destination for both domestic and international visitors while boosting the state’s economic development.

On his part, Mr Onwuanibe expressed gratitude for the opportunity to manage the iconic hotel and assured the government of delivering world-class services.

He also emphasized the potential of the hotel to serve as a major tourism hub, creating employment opportunities for the youth and revitalizing Enugu’s tourism sector.

While signing the deal with the Commissioner for Trade and Investment, Mrs Adaora Chukwu, the Landmark Group boss said the initiative should boost the local economy and attract approximately 3 million visitors annually.

Recall that in 2024, the popular beach resort operated by Landmark Group in Lagos was demolished by the federal government to make way for the controversial Lagos to Calabar Coastal Road.

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Travel/Tourism

Air Peace Partners ADINA to Strengthen African Trade

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air peace airline

By Modupe Gbadeyanka

To strengthen African trade and diaspora connections, one of the leading airlines in Nigeria, Air Peace, partnered with the Africa Diaspora Investment Network Alliance (ADINA) for its summit held in Ghana on December 27, 2024.

The airline operator said it backed the event to solidify its commitment to fostering stronger ties between Africa and its global diaspora.

The programme facilitated conversations around trade, investment, and economic empowerment, positioning the diaspora as a significant force for Africa’s economic transformation.

At the summit held at the Kempinski Gold Coast City Hotel in Accra, the Head of Sales and Business Development at Air Peace, Mr Davids Odeyemi, emphasized the airline’s mission to connect Africa and its diaspora.

He highlighted Air Peace’s extensive network, which offers seamless travel solutions for diasporans seeking to reconnect with their roots, explore their heritage, and invest in Africa’s burgeoning markets.

Mr Odeyemi also reaffirmed the airline’s role as a driver of intra-African trade, enhancing connectivity to enable the movement of goods, services, and people, thereby creating jobs and fostering economic growth.

Air Peace’s partnership with the ADINA Summit also aligns with its broader commitment to promoting tourism and showcasing Africa’s rich cultural heritage. The airline’s continuous investment in a modern fleet underscores its determination to provide a world-class travel experience, reinforcing its position as a catalyst for African development.

The programme underscored the critical role of diaspora remittances in bolstering local economies, with discussions focusing on the potential of the diaspora to surpass traditional foreign direct investments.

Air Peace, through this partnership, gained access to a high-level network of African and diaspora leaders, creating opportunities to connect with talent, clients, and collaborators while amplifying its branding and marketing initiatives.

By actively participating in the ADINA Summit 2024, Air Peace reaffirmed its dedication to shaping the continent’s future. This partnership exemplifies the airline’s leadership in African aviation and its unwavering commitment to driving progress across the continent. Together with ADINA, Air Peace is helping to unlock Africa’s economic potential and strengthen its global connections.

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Musawa, Governor Mba Commission Enugu Christmas Village

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Enugu Christmas Village

By Dipo Olowookere

The Enugu Christmas Village has been commissioned by the Minister of Arts, Tourism, Culture, and the Creative Economy, Ms Hanatu Musawa; and the Governor of Enugu State, Mr Peter Mba.

This development officially kicked off the holiday season in the state, giving residents and others from across Nigeria and outside the opportunity to relax in an atmosphere of love, positioning Enugu as a key destination for cultural and holiday tourism.

Facilitated by Omu Resort, a leading tourism promoter in Africa, the Enugu Christmas Village is set to become the heartbeat of holiday celebrations in the state.

The company has already organised a 25-day festival at the village designed to attract residents, visitors, and dignitaries from across the region.

With its vibrant atmosphere and festive attractions, the Enugu Christmas Village boasts an array of attractions such as a waterpark, roller skating, archery, amusement rides, and much more.

At its centre is a breathtaking display of 500,000 Christmas lights, illuminating the village in a magical glow that promises to captivate visitors of all ages.

The festival goes beyond the lights and rides, offering a rich tapestry of events that celebrate the state’s cultural heritage.

Highlights include Afrobeat Concert, Praise Night, Highlife Concert Street Carnival, Cultural Parade and a Grand Fireworks Show.

One of the most anticipated moments is the Santa Street Storm, where over 100 Santa Claus figures riding tricycles will parade through the streets, distributing gifts to orphanages and the less privileged, spreading joy and goodwill.

Running from December 7 to December 31, 2024, the Enugu Christmas Festival is more than just a celebration of the holiday season. It underscores the state’s cultural vibrancy and its potential as a leading tourist destination.

The festival offers a unique opportunity for families and friends to come together, celebrate, and unwind in a festive atmosphere. It is also expected to fosters unity and showcases the rich cultural heritage of Enugu State, while promoting arts, tourism, and community well-being.

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