The Board of Dalata Hotel Group has announced it is undertaking a strategic review to explore options available to optimise capital opportunities for the Group, including but not limited to a potential sale of the Group.
This week, Dalata reported record revenue for 2024 of €652.2 million, Adjusted EBITDA of €234.5 million and Adjusted EBITDA (after rent) of €173.2 million.
Dalata’s portfolio includes 30 owned hotels which are valued at €1.7 billion including assets under construction, 73% of which relates to hotels in Dublin and London. It also operates 22 leased hotels, the majority of which are on long term institutional lease agreements with a weighted average lease length of 29 years. Dalata also operates three managed hotels.
In a statement, the Board said it recognised that the Group faces 'certain structural challenges', including its relatively small scale in a public market context, its relatively concentrated shareholder register, and a constrained capital base.
The Board has appointed Rothschild & Co as its financial adviser to assist with a review of its strategic options.
"We believe that now is the right time to undertake a rigorous and formal strategic review, which will consider options to increase access to capital and also enhance shareholder value," said John Hennessy, Dalata Chairman.
