Why We Sold Calabar Hotel Worth N2.5bn To Eco Travels-Transcorp

Transcorp Hotels Plc has revealed that it sold Transcorp Hotels Calabar Ltd to focus on more profitable ventures, adding that the fair value of Calabar-based hotel was N2.5bn.

The group made the disclosure in its financial statement for June 2024, obtained by THE WHISTLER.

The subsidiary has been sold to Eco Travels and Tours Limited.

“At the end of 2023, the board had resolved to dispose of one of its subsidiaries, Transcorp Hotels Calabar Limited. The disposal is consistent with the group’s long-term policy to focus its activities on the group’s other businesses. Consequently, assets and liabilities allocable to the subsidiary were classified as a disposal group,” Transcorp said.

On February 5, 2024, the company obtained approval from the Federal Competition & Consumer Protection Commission (FCCPC) for the divestment of Transcorp Hotels Plc’s 100 per cent shares in Transcorp Hotels Calabar Limited.

Transcorp also received the consent of the Securities and Exchange Commission (SEC).

The disposal was completed on February 29, 2024, on which date control of Transcorp Hotels Calabar Limited was passed to the acquirer, Eco Travels and Tours Limited, an indigenous hospitality company.

Although the details of the transactions were not revealed, THE WHISTLER can report that the company’s books for the period ending June, 2024 show that the total asset which was classified as held for sale was N2.89bn.

However, the company revealed that the fair value of Transcorp Calabar which was sold to Eco Travels and Tours Ltd was N2.5bn.

The total liabilities associated with Transcorp Calabar were worth N398.9m.

Meanwhile, Transcorp Hotel posted revenue of N29.7bn in the first half of 2024 ending June, up from the N18.46bn recorded in 2023.

The group’s profit jumped from N2.4bn in June 2023 to N6.6bn in the first half of 2024.