Reflecting on Dalata’s success and growth in the 10 years since IPO
ISE: DHG LSE: DAL
Dalata Hotel Group Plc | 2024 AGM Statement
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, is holding its Annual General Meeting (“AGM”) today at 11:30 am BST at Clayton Hotel Cardiff Lane, Sir John Rogerson’s Quay, Docklands, Dublin. Shareholders are welcome to attend the meeting in person or participate in the AGM electronically using the link below.
At the AGM, John Hennessy, Chair of Dalata, will make the following statement: “In March this year we celebrated ten years since Dalata’s flotation on the stock exchange. Reaching this milestone encourages us to reflect on the strong progress and growth we have achieved during that time. In the year prior to flotation, the Group’s revenue was just over €60 million with hotel assets of €5 million. Ten years on, Dalata has become the leading hotel operator in Ireland and has significantly expanded its footprint, with 53 hotels across Ireland, the UK and Continental Europe, delivering over €600 million revenue in 2023 with hotels assets of €1.7 billion at the end of last year. We remain committed to our belief that hospitality is all about people and Dalata’s success would not have been possible without the dedication and talent of our people who continue to deliver for our customers, our shareholders, and our other stakeholders.
2023 marked another record performance for the Group in terms of revenue and free cashflow generation together with strong execution of our growth strategy. 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. We have embraced a culture of innovation in our determination to increase efficiency and sustainability across our business. In 2023, we successfully protected margins despite the cost inflationary environment and reduced carbon emissions per room sold whilst maintaining strong customer and employee feedback scores.
2024 has commenced with good performance for our UK portfolio which is expected to achieve modest RevPARi growth on January to April 2023. We also continue to see healthy levels of corporate demand across all regions. As reported during our full year results in February, there has been lower levels of trade in Ireland. While the Dublin market continues to digest the impact of new supply, trade improved during March compared to January and February. 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. RevPAR[i] for the Group is expected to be 4% behind 2023 for the period of January to April on a ‘like for like’ basis. As we look ahead, we remain optimistic in our outlook for the remainder of the year where trade typically is driven by stronger seasonal factors, supported by a strong events calendar, flight schedules and forward bookings for May and June. 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.
Earlier this week we launched our refreshed Clayton and Maldron brands. Our new brands reflect our commitment to delivering value while fostering meaningful connections with our people and customers and provide an exciting platform for continued growth. We are also excited that this year will see the opening of four new Maldron hotels across the UK, all centrally located in our target cities of Liverpool, Brighton, Manchester and London. The Group has considerable firepower available for further growth in line with our ambitious and disciplined growth strategy. We remain focussed on growing in 11 key cities in the UK and establishing a presence in targeted large European cities with a strong mix of corporate and leisure demand.
I feel a great sense of pride as I reflect on the growth, performance and operational enhancements we have achieved as a Group over the past ten years. The business continues to be extremely well served today, by talented and experienced people who embody the Dalata culture and vision, which together with our financial strength, positions us well as we look to the future, respond to challenges and take advantage of opportunities as they arise.”
AGM details
Shareholders can access the AGM, ask questions and vote, via a virtual meeting platform. This can be done by accessing the meeting website at meetnow.global/DHGIAGM2024 on the date appointed for the AGM. The results of the resolutions relating to the AGM will be published later today. Further information relating to the AGM is published on the Company’s website at https://dalatahotelgroup.com/investor-relations/shareholder-centre/
