Dalata Hotel Group, the largest hotel operator in Ireland, has provided a trading update for the second half of 2024, and expects to deliver adjusted EBITDA in excess of €232 million for the year.
The group claims trading has remained robust and coupled with the positive impact of recent hotel additions in 2023 and 2024, it expects 4% growth year-on-year.
“We are on track to deliver another strong financial performance, headlined by another year of growth in both our revenue and Adjusted EBITDA performance," said Dermot Crowley, CEO of Dalata.
"Our focus on innovation over the last three years continues to deliver enhanced productivity and mitigate the impact of cost inflation on our margins."
Dalata estimates that the recently announced changes in UK National Insurance, the increased minimum wage rates in Ireland and the increased living wage rates in the UK will increase hotel payroll by c. 5% in 2025 on a ‘like for like basis’.
The Group claims it continues to 'respond proactively' to cost pressures and is confident it will cover these additional costs with the benefit of a €2 million reduction in contracted energy pricing, the ongoing roll out of further efficiency and innovation initiatives and through RevPAR growth in its markets.
In 2025, Dalata also hopes to benefit from the full year impact of hotels opened in 2024 and the addition of Radisson Blu Hotel Dublin Airport.
"We opened four new hotels in the UK this summer, we added to our growth pipeline with the acquisition of the Radisson Blu Hotel Dublin Airport and we exchanged an agreement for lease for a Clayton hotel to be developed in the heart of the City of London," said Crowley.
"Our growth is supported by our investment in our brands, which has enhanced our guests’ experience and driven a stronger market position."
Dalata also completed the refinancing of our debt facilities in 2024, securing a €600 million debt package including its inaugural private placement. Crowley believes this positions Dalata strongly to capitalise on any opportunities that will deliver accretive value to the business and further strengthen its financial performance.
Crowley also said that the ability of Dublin Airport to continue to increase passenger numbers is "crucial" to support further growth across the Irish economy, particularly in the hospitality and tourism sectors.
"Looking forward, I am pleased that the cap will not apply in the summer of 2025, and we are hopeful that it will be removed fully in time," said Crowley.
"It is expected that passenger numbers at Dublin Airport will grow by 4% in 2025, with increased access from North America, which will be very positive for hotels across the whole of Ireland."
