Transcorp to develop luxury Nigeria hotels with IPO proceeds

Transcorp Hotels will invest the proceeds of a $49-million initial public offering into two new luxury Nigerian hotels as the operator seeks to benefit from a rise in international travel, Bloomberg reports. The company already owns two hotels, including a Hilton in Nigeria’s capital, Abuja (pictured). It plans to add two more in within the next three years, CEO Valentine Ozigbo said.

“The next three to four years would see our new hotels become operational and boost profit significantly,” Ozigbo said. “International travel arrivals into Nigeria have risen in the past few years, due to increasing economic activity in the financial services sector, telecommunications and construction industries.”

Transcorp Hotels will sell 800 million shares at 10 naira each to finance the development of a 300-room luxury hotel in Lagos, Nigeria’s commercial capital, and another 250-room property in the oil-hub city of Port Harcourt. The projects, which will cost about $500 million, will be funded by a combination of debt and equity, Ozigbo said. Rooms in the Transcorp Hilton Abuja range from about $400 to $3,600 per night, according to its website.