Dalata H1 earnings to exceed €100m amid ‘very strong’ trading

Dalata has said it expects adjusted EBITDA to be in excess of €100m (£85m) in the first half of the year, as it welcomed a “very strong” H1 trading performance across its existing hotels, with the impact of new hotels “ramping up” over the period. Dalata previously revealed that group like-for-like RevPAR was 28% ahead of 2019 levels for the January to April period. Now, RevPAR is expected to be 29% ahead of 2019 levels for the H1 period. In Q2, like-for-like group RevPAR was up by 11% in the second quarter of FY23. Against last year, UK and Regional Ireland RevPAR was up by 15% in the quarter respectively, while Dublin RevPAR was up by 10%. The group said its margin performance has continued to improve, and its decentralised hotel teams are “successfully managing the inflationary environment through the use of dynamic pricing, cost management and an increase in sustainability initiatives delivering a reduction in utility consumption”. Dalata said it was confident about the summer trading period as demand is “robust” across all markets, and it has seen a strong mix of corporate and leisure business boosted by the return of international travel and sustained domestic demand. It added it has continued its UK growth strategy with two new London hotel acquisitions, with Maldron Hotel and Finsbury Park and Clayton Hotel London Wall both set to begin operations in the coming weeks. Elsewhere, development works on Dalata’s other pipeline hotels are said to be progressing well, with Maldron hotels in Shoreditch London, Brighton, Liverpool and Manchester on track to open in 2024. Dermot Crowley, CEO of Dalata, said: “I am delighted with our performance for the year to date. The financial performance is the result of the dedication and professionalism of our teams in our hotels and central office – our people remain our greatest strength. “I am very pleased with the performance of the hotels we recently added to the portfolio, it gives me great confidence that the current pipeline of new hotels will also create significant value for our shareholders.” He added: “We continue to deliver on our growth strategy with the exciting addition of two new hotels in London since the start of the year. The excellence of our people, the ongoing strength of demand across our markets and the quality of our portfolio gives me great confidence for the remainder of the year.”