Monday, May 27, 2024

Dalata sees revenue fall amid ‘lower trade levels’ in Ireland

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Maldron and Clayton owner, Dalata has reported lower trade levels in the first four months of this year, citing the impact of rising competition and Vat rate increases on the business. 

In a statement published on Thursday morning ahead of the hotel owner’s Annual General Meeting, the group said its average revenue per room was expected to be 4% behind 2023 levels from January to April.

However, the group, which is the largest hotel operator in Ireland, said the timing and nature of certain events last year, including the visit of US President, Joe Biden and the rise in Vat, hurt like-for-like comparisons. 

It noted that March saw improvements in trading conditions compared to January and February, adding that the Dublin market “continues to digest the impact of new supply.”

Offsetting Dalata’s softer trading in Dublin, the group said 2024 commenced with a “good performance” for its UK portfolio, which is expected to achieve “modest” revenue per room growth from January to April 2023.

“2023 marked another record performance for the Group in terms of revenue and free cash flow generation together with strong execution of our growth strategy,” said Chair of Dalata, John Hennessey.

“In 2023, we successfully protected margins despite the cost inflationary environment and reduced carbon emissions per room sold.”

Last year saw the group add a hotel in Amsterdam, two hotels in London and secured a building conversion opportunity in Edinburgh.

The business, which operates 53 hotels across Ireland, the UK and Continental Europe, said it remained optimistic in its outlook for the remainder of the year, where trade is “typically driven by stronger seasonal factors.”

“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 Hennessey added.

The group’s AGM is being held today in Dublin.

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