Dalata Hotel Group report strong first half show with earnings over €100m

DALATA Hotel Group, who operate all Maldron and Clayton brands in Ireland has reported a strong first half performance as it pointed to “robust” demand for both corporate and leisure travel.

Dalata now expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the first six months of the year to be in excess of €100m.

In 2022, the business reported an EBITDA of around €81m for the same period.

Revenue per available room (RevPar) is now expected to be 29 per cent ahead of 2019 levels for the January to-June period. This reflects an increase from earlier in the year.

The hotel group reported that RevPar between January and April was 28 per cent ahead of the same period pre-pandemic.

Group RevPar is now 11 per cent ahead of 2022 levels, the hotel operator said.

In Dublin, RevPar is up 10 per cent but has risen 15 per cent in both regional Ireland and the UK.

This was attributed to a mix of corporate and leisure business, as well as the return of international travel and continued domestic demand.

The group said that margin performance had improved, while inflation was being managed by price increases, cost management and use of sustainable practices in hotels to reduce consumption.

The Maldron Hotel Finsbury Park and Clayton Hotel London Wall, which were both acquired in February and June respectively, are set to open in the coming weeks.

Four further Maldron locations will open next year across the UK.

“It gives me great confidence that the current pipeline of new hotels will also create significant value for our shareholders,” chief executive Dermot Crowley said.

“We continue to deliver on our growth strategy with the exciting addition of two new hotels in London since the start of the year.”

Dalata currently owns 29 hotels, with a further 18 leases and three management contracts.

These hotels are located across Ireland and the UK, as well as one property in Düsseldorf, Germany.

Its EBITDA for 2022 was €184.3m, while revenues for the year were €558.3m, the first time it breached the €500m mark.

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