Dalata Hotel Group Plc | 2024 Half Year Trading Update

Wednesday, July 03, 2024. 11:34am
Dalata Hotel Group Plc | 2024 Half Year Trading Update
Dermot Crowley, Dalata Heart of Hospitality

HY 2024 Trading Update ISE: DHG LSE: DAL

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 first six months of 2024.

As outlined at our AGM in April, the trading environment was quieter in the early months of the year, with Group RevPARi 4% behind 2023 levels, driven by supply dynamics in key markets and a lower number of events. However, the trading environment has improved as we have entered what is typically a busier period for hoteliers. For May and June, all four regions are expected to outperform 2023 with Group RevPARi 3% ahead of 2023 levels. Corporate demand remains strong and ahead of last year. For the six months ending 30th June 2024, Adjusted EBITDAii is expected to be in excess of €105 million, surpassing 2023 levels, with RevPARi for the Group marginally below 2023 levels (-1%).

While it remains an on-going challenge, the Group continues to proactively respond to inflationary pressures, particularly increasing rates of pay. The focus on creating a culture of innovation is delivering initiatives that are improving productivity whilst enhancing both our employee and customer experience.

Dermot Crowley, CEO, Dalata said:

The Group’s RevPARi outperformed 2023 levels for May/June, which is reflected across each of our four regions. This is pleasing following what had been a more challenging start to 2024 RevPAR performance for the markets in which we operate, compared to 2023. In Dublin specifically, demand remains strong, however, the combination of increased supply and the increase in the VAT rate has impacted RevPAR in the first six months of the year. I am pleased with our performance to date which reflects the hard work and professionalism of our teams in our hotels and at our central office. Our focus on innovation over the last three years has mitigated the impact of rising costs on our margins.

As we look ahead, we are positive in our outlook for the summer period supported by future demand indicators across our markets, including growing air traffic forecasts and active event calendars. Within the Irish market, we are not yet seeing any material impact of industrial action at Aer Lingus, though any prolonged dispute presents risk to the wider industry in Ireland. The refresh of our consumer brands, Maldron and Clayton, has been well received and we have launched a new customer experience training programme across our hotels to bring our signature brand of customer experience, the Heart of Hospitality, to all guests.

We continue to execute on our UK growth strategy and will increase our UK footprint by 20% in 2024 equating to 838 new rooms. We opened the new Maldron Hotel Manchester Cathedral Quarter in May, and we will welcome our first guests to our Maldron Hotels in Liverpool and Brighton followed by the opening of Maldron Hotel Shoreditch, London over the next two months. We remain focused on delivering strategic growth supported by our strong balance sheet, cash generative business and skilled teams. I am excited by the quantity and quality of opportunities we are assessing, as we continue to build on our ambitious growth strategy”.

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