Transcorp Hotels Plc has reported a strong start to the 2026 financial year, posting a revenue of N22.41 billion for the first quarter ended March 31, reflecting a 9 per cent increase from N20.64 billion recorded in the same period of 2025.

The company also recorded a 15 per cent rise in profit before tax, alongside an improvement in gross profit margin to 77 per cent, according to its unaudited financial results released on Friday.

Management attributed the performance to a strategy focused on operational discipline, efficiency and consistent value creation, noting that the results demonstrate resilience in its business model and execution of its growth plans.

“Transcorp Hotels is not only growing, we are setting new benchmarks for world class hospitality in Africa,” the company said in a statement.

The Chief Finance Officer, Oluwatobiloba Ojediran, said the improved performance was driven by cost management without compromising service quality.

He disclosed that the company reduced its cost of sales margin from 25 per cent in the first quarter of 2025 to 23 per cent in the same period of 2026, reflecting tighter operational controls.

“These results reflect a clear and compelling story of a team deeply committed to efficiency and cost management without compromising our service standard,” Ojediran said.

As a subsidiary of Transnational Corporation Plc, Transcorp Hotels continues to leverage group synergies to strengthen its position in the luxury hospitality market across Africa.

Analysts say the company’s performance is comparable to running a high end facility that not only attracts more guests but also manages its internal costs more efficiently, resulting in stronger profitability.

With sustained revenue growth and improved margins, the company appears well positioned to maintain its upward trajectory through the 2026 financial year.