Transcorp to build $240m hotels in Lagos, Port Harcourt

TRANSCORP Hotels Plc (THP) has concluded plans to build two new flagship hotels in Lagos and Port Harcourt, at an estimated cost of $240 million (N38.4 billion), as part of its business expansion agenda.

   Besides, the company will soon expand the operational profile of Transcorp Hilton Hotel in Abuja, with the construction of a new multi-purpose convention centre and 200 unit apartments within the 20 hectare facility in the Federal Capital Territory.

    Specifically, the proposed hotel in Lagos will be built at a cost of $140 million (N22.4 billion), while that of Port Harcourt will gulp $100 million (N16 billion).

    THP’s managing director and chief executive officer, Valentine Ozigbo, while making the disclosures in Lagos at the weekend, explained that the new projects would be partly funded from the proceeds of the ongoing Initial Public Offer (IPO) of the company.

   THP is planning to list its shares on the Nigerian Stock Exchange, offering 800,000,000 ordinary shares of 50 kobo each at N10.00 per share for subscription

  Ozigbo stated that the proposed 300 room Lagos hotel would be built in Ikoyi, specifically on a 6,000 square metres of land already acquired on Glover Road.

  He added that the company also has plans to to build more of such facility at Ikeja and Lekki areas of Lagos.

  According to Ozigbo, THP has the vision to be the top hospitality company in Africa, “creating maximum and sustainable value for stakeholders, as well as to build Africa’s choice hospitality assets underpinned by excellence entrepreneurship and execution.”

  He added: ““Nigeria’s hospitality industry is experiencing significant growth, with major demand for expanded capacity and enhanced quality and service.

  “THP is ideally positioned, as the existing owner of the largest number of hotel rooms in Nigeria, and partnered with one of the world’s most prestigious hotel brands, Hilton Worldwide, to leverage this demand.

  “The proceeds of this offer will be used to fund the development of two new Transcorp Hilton hotels, one in Ikoyi, Lagos, and the second in Port Harcourt, with both due for completion in 2017.

  “We are delighted to be able to offer the Nigerian public the opportunity to participate in our future success. This offer reiterates our commitment to creating sustainable value for all stakeholders. ”

   The President and Chief Executive Officer of Transcorp Plc, the parent company, Emmanuel Nnorom, remarked that the existing shareholders and members of the public should be excited by this positive development to open up ownership of what is widely regarded as the most strategic piece of real estate in Nigeria and share in the fortunes of the company that is already known for its impeccable track record, healthy financials and strong corporate governance.

  THP is the hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp Plc) and owns and operates the Transcorp Hilton Abuja and the Transcorp Hotels Calabar.

  The offer for subscription opened on September 24th and will close on September 30.

Culled from http://www.ngrguardiannews.com