Nigeria’s hospitality industry in the first quarter has yet to recover from the negative impact of Covid-19 as Transcorp Hotels, a big player in the business lost N201.97m.
This is based on the First Quarter report released by the Transnational Corporation of Nigeria Plc on the Nigerian Exchange Group.
The industry was weakened by the disruptions induced by the virus in 2020. The ban on international flight, coupled with the national lockdown had disrupted activities in the sector.
The sector categorised under ‘Accommodation and Food Service’ had in the full year of 2020 contracted by 17.75 per cent as Nigeria plunged into recession last year.
With the recovery of the economy which grew 0.11 per cent in the fourth quarter of last year, the sector was projected to also recover particularly with the opening of international travels.
But for Transnational Corporation of Nigeria PLc, its hotel business posted a revenue of N3.96bn, down by 4.9 per cent compared to the N4.2bn revenue recorded in the first quarter of 2020.
In the corresponding quarter of last year, Transcorp Hotel lost N686.536m in the wake of the pandemic.
The hotel has its branches in Calabar, Cross River State; Port Harcourt; Ikoyi, Lagos State and Abuja.
Analysis of the results shows that the company raised a total of N2.6bn from rooms, N1bn from food and beverages, N201.1m from shop rentals and N188.7m from other operating revenue.
The Transcorp Hotels lost N6.28bn in the full year of 2020, after realising N613.74m profit in 2019.
The company held a total asset of N58.63bn in the First Quarter of 2021.