Monday, May 20, 2024

Dalata Hotel Group sees revenues dip following ‘lower levels of trade’ in Ireland

Must read

In a statement published ahead of the company’s AGM today, the company pointed to “lower level of trade” here.

As a result, revenue per available room (RevPar) for the group is expected to be 4pc lower than 2023 levels for the period of January to April.

However, Dalata noted that trade improved in March compared to January and February, adding that Dublin “continues to digest the impact of new supply.”

“The timing and nature of events compared to 2023 (such as the visit of US President in April 2023) in addition to the increased VAT rate from September 2023 has had an impact during the first four months,” chair John Hennessy said.

The business, which operates under the Clayton and Maldron brands, said it remained optimistic in its outlook for the rest of the year due to seasonal factors, such as events, flight schedules and forward bookings.

The group’s UK portfolio is also expected to achieve “modest” RevPar growth in the first four months of 2024 compared to the same period last year, while corporate demand levels remain healthy.

Four Maldron hotels will also open in the UK this year, located in the cities of Liverpool, Brighton, Manchester and London.

“We also look forward to the greater contribution from the ten hotels added to the portfolio since 2022 as they mature and the additional contribution from the four new hotels opening this year,” Mr Hennessy added.

Dalata saw sales rise to €607.7m in 2023, up 18pc from the prior year.

Adjusted earnings before interest, tax, depreciation and amortisation (Ebtida) for 2023 were €223.1m, rising 22pc from 2022.

Revenue per available room (RevPar) was 12pc ahead of 2022 levels last year, while the average room rate increased 6pc to €143.36 a night.

“We added a hotel in Amsterdam, two hotels in London and secured a building conversion opportunity in Edinburgh, representing three very commercially attractive cities in our target markets,” Mr Hennessy said.

Davy analyst Paul Ruddy wrote in a note that Davy anticipates an improvement in Dalata’s growth in “the seasonally more important part of the year due to the increase in scheduled flights this summer, a busy events calendar and easier comparatives from September onwards.”

Latest article