‘Very successful’ first half of year for Dalata Hotel Group

DALATA Hotel Group, who operate all Maldron and Clayton brands in Ireland, has recorded a “very successful” first half of the year as the post-pandemic travel recovery showed no sign of slowing.

Hotel revenues for the first six months of the year were €284.8m, Dalata reported.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half of 2023 were €103.4m.

Last year, the business, Ireland’s largest hotel operator, reported an adjusted EBITDA of around €83m for the same period.

Revenue per available room (RevPar) was 23 per cent ahead of 2022 levels for the January to-June period, while the average room rate jumped 10 per cent to €139.50 a night.

In the July/August period, RevPar is up a further 5 per cent in Dublin and the UK and has risen 8 per cent in regional Ireland.

Occupancy levels also increased to 78.4 per cent compared to 69.8 per cent in the corresponding period last year.

Overall, the group’s property, plant and equipment (PPE) is now worth €1.6bn, a rise of 11 per cent since December 31. Around 5 per cent of this rise relates to revaluation increases on existing properties.

The company’s board has declared an interim dividend of 4 cent per share, which represents a total dividend payment of around €8.9m.

The Maldron Hotel Finsbury Park and Clayton Hotel London Wall, which were both acquired in February and June respectively, commenced trading under the Dalata brands in July.

The addition of these two locations have boosted their London room numbers by 64pc

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

The group said the first half of 2023 had been “very successful” as demand for international travel soared. It added that it had not seen any indication of potential slowdowns as a result of high inflation levels.

“The group has delivered a record set of financial results and reported excellent customer and employee satisfaction scores,” chief executive Dermot Crowley said.

“We have responded effectively to the challenge of rising costs through cost and revenue management initiatives, a focus on reducing utility consumption and adopting innovation across all areas of the business.”

He added that Dalata has taken a “reasonable” approach to pricing, with average Dublin room rate around €177 from May to August.

“We remain mindful that the current cost environment is highly dynamic, and our innovation and cost management measures will need to keep pace,” he said.

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