About Tony Elumelu’s $200m Transcorp Hilton Lagos Project

FUNSHO AROGUNDADE

Transcorp Hotels, the hospitality arm of Transnational Corporation (Transcorp Group), a conglomerate led by banking magnate Tony Elumelu, recently unveiled an ambitious $200 million investment plan during its 10th Annual General Meeting (AGM) in Abuja.

The strategic initiative entails the development of a lavish 20-storey 315-room hotel to be located on Glover Road in Lagos’ upscale Ikoyi neighborhood, marking a significant milestone in Nigeria’s hospitality sector.

This venture aligns with the company’s strategy to capitalise on the growing global luxury hotel market, which is projected to experience significant growth from $107.77 billion in 2024 to $157.59 billion by 2029.

The audacious project, which has been long in the making, was stalled at a point, but after resolving the complex issues, the ambitious hotel project resumed.

Initially, the hotel was meant to offer conference facilities, meeting rooms, gym, spa, swimming pool and an iconic design which Transcorp argues will add verve to the Lagos landscape.

However, the hotel promoters said the project required more land in order to construct a multi-use structure ‘Twin Tower’ that will feature the hotel as well as office space.

Dupe Olusola, Managing Director and CEO of Transcorp Hotels, noted that the company is expanding the Ikoyi, Lagos hotel project and it is going to be a phenomenal, five-star hotel that offers accommodation, event space, restaurant, health and fitness among others.

More importantly, the hotel will have an additional facility of a 21-storeyed office block, with construction cost estimated at $110 million.

“We have acquired additional land, expanding the (Lagos Hotel) project’s footprint to 14,000 square meters,” Olusola disclosed during the recent AGM.

She revealed that the colossal investment aligns seamlessly with the company’s strategic vision of elevating Nigeria’s stature as a premier destination for both business and leisure travelers.

The forthcoming establishment vows to establish a new pinnacle of hospitality excellence, boasting world-class amenities and services, thus fortifying Transcorp Hotels’ position as a frontrunner in the industry.

She noted that the upcoming project with an impressive inventory of 315 meticulously designed rooms, scheduled to commence operations by 2027, will set a new standard for hospitality excellence in the region.

“This expansion initiative reflects our forward-thinking approach and proactive stance in meeting the evolving needs of the market,” she stated.

At the moment, 90% of Transcorp Hotels revenue comes from their Abuja property, known as Transcorp Hilton Abuja.

Transcorp counts Texas-based Hilton Hotels & Resorts as its partner.

It launched a hospitality platform, Aura, in July 2021, enabling users to book to stay in accommodation across 30 states in Nigeria.

Transcorp Hilton Lagos will features locally-inspired design with a focus on sustainability.

It will also includes a range of guest rooms as well as meeting and function space, a spa, pool, fitness center, and a variety of bars and restaurants as well as 5 levels of above-ground parking.

The building is oriented to maximize energy efficiency; the design incorporates a green roof system with a storm water collection system, solar water heaters, and photovoltaic technologies.

The Lagos hotel will help the firm diversify its earnings away from the Abuja Transcorp, from which it currently makes over 90 percent of its revenue.

“It is significant as it will help grow our revenues and deliver more in the hospitality space,” said Olusola while noting that Transcorp will consider equity and debt financing for the Lagos hotel.