Dalata Hotel Group Plc (“Dalata” or “the Group”), the largest hotel operator in Ireland, with a growing presence in the United Kingdom and continental Europe, provides a trading update for the second quarter of 2023.
The Group has continued to trade strongly and expects Adjusted EBITDA to be in excess of €100 million for the six months ending 30th June 2023. This reflects a very strong first half trading performance across the Group’s existing hotels and the continued impact of new hotels as they ramp up. Dalata disclosed in April that Group ‘like for like’ RevPAR[i] was 28% ahead of 2019 levels for the January to April period. RevPARi is expected to be 29% ahead of 2019 levels for the H1 period.
The Group’s margin performance has continued to improve, and Dalata’s decentralised hotel teams are successfully managing the inflationary environment through the use of dynamic pricing, cost management and an increase in sustainability initiatives delivering a reduction in utility consumption. The Group continues to utilise innovation to drive efficiencies whilst protecting or enhancing both our employee and customer experience, this has been highly successful during the period.
Dalata looks forward with confidence to the summer trading period as demand is robust across all markets. We continue to see a strong mix of corporate and leisure business boosted by the return of international travel and sustained domestic demand.
‘Like for like’ Group RevPARi ahead of 2022 levels:
Q2 2023
- Dublin
- +10%
- Regional Ireland
- +15%
- UK
- +15%
- Group
- +11%
The Group continues to execute on its UK growth strategy with two new London hotel acquisitions, demonstrating its ability to reinvest Free Cashflow and expand its hotel portfolio. Maldron Hotel Finsbury Park and Clayton Hotel London Wall are due to commence operations for the Group in the coming weeks. Development works on Dalata’s other pipeline hotels are progressing well, with Maldron hotels in Shoreditch London, Brighton, Liverpool and Manchester on track to open in 2024. These additions will further enhance the Group’s portfolio of modern four-star hotels as it continues to deliver on its strategic growth plan.
Dermot Crowley, CEO, Dalata said: “I am delighted with our performance for the year to date. The financial performance is the result of the dedication and professionalism of our teams in our hotels and central office – our people remain our greatest strength. I am very pleased with the performance of the hotels we recently added to the portfolio, it gives me great confidence that the current pipeline of new hotels will also create significant value for our shareholders. We continue to deliver on our growth strategy with the exciting addition of two new hotels in London since the start of the year. The excellence of our people, the ongoing strength of demand across our markets and the quality of our portfolio gives me great confidence for the remainder of the year.”
