Transcorp plc, owners of Transcorp Hilton Hotel, Abuja, says it is ready to expand its business to six states of the federation.
The expansion is in pursuit of the company’s agenda under the second phase of its post-acquisition plan as contained in the Share Purchase Agreement it had with the Bureau of Public Enterprises (BPE).
The expansion plan would lead to hotels in Lagos, Ibadan in Oyo state, Port- Harcourt in Rivers state, Kano in Kano state, Asaba in Delta state, and Calabar in Cross River state within the next five years
Valentine Ozigbo, the Chief Executive Officer of Transcorp plc, told the BPE team (led by an Assistant Director, Rabiu Abba) that visited him in Abuja on Wednesday, that the second phase action plan to be submitted within the next two weeks would spell out other details like recapitalization and market dominance.
Mr. Ozigbo, who attributed the delay in the take-off of the expansion programme to the illegal encroachment on the hotel’s land, said that since the issue had been resolved, his management was ready to begin the second phase action plan.
He said the areas of focus during the exercise would be the construction of a world class shopping mall within the hotel grounds in Abuja; as well as the construction of short/long stay service apartments within the premises, to cater for the needs of corporate clients.
The Transcorp boss said regarding recapitalization that, funding and development plans are already in to leverage internal resources, debt funding for new business development, as well as further refurbishments.
“After the BPE succeeds with further sale of government’s interest in the hotel, equity funding will be deployed to boost the capital base for further expansion,” he said.
While speaking on the progress recorded since the hotel was privatized, Mr. Ozigbo said the hotel now has staff strength of about 1,430 from the 957 it inherited in 2005.
He decried the poor power supply situation in the country and the current security challenge, saying these were hampering the optimal performance of the hotel.