Dalata Hotel Group says that trading is better than expected

By Maurice Garvey

DALATA Hotel Group, who operate all Maldron and Clayton brands in Ireland, expects to be close to break-even at adjusted earnings before interest, taxation, depreciation and amortisation (ebitda) for the first six months of this year.

The group cite the easing of Covid restrictions and a continuation of cost management as positive factors for business in the second half of the year.

Dalata reported a loss of €3.6m for the first three months of the year due to Covid-19 restrictions.

However in a trading update, Ireland’s largest hotel group said that it is mitigating the impact of reduced trading levels through “pro-active cost control” and the use of government supports.

In the months of April, May and June, Dalata said trade at its hotels improved as non-essential customers were allowed to return to hotels from May 17 in England and Wales.

Non-essential hotel guests have been allowed back since June 2 in the Republic of Ireland.

Occupancies for the second quarter of this year were 24 per cent in Dublin, 32 per cent in regional Ireland and 30 per cent in the UK.

Since re-opening, the group said trading has been “better than expected.”

Dalata said lead times on bookings remains short, however the group’s forward bookings continue to improve.

Occupancies for June were 37 per cent in Dublin, 60 per cent in regional Ireland and 44 per cent in the UK.

They said there has been a bounce in leisure demand at its hotels in regional Ireland and regional UK driven by staycations during the summer months.

Founded in 2007, Dalata’s portfolio now consists of 29 owned hotels, 12 leased hotels and three management contracts with a total of 9,261 bedrooms.