Dalata Hotel Group plc has published a trading update for the second quarter of 2022.
Details
According to the trading update, which was published on DalataHotelGroup.com/investors/latest-financial-news, Dalata announced in April that its revenue per available room (RevPAR) was 9% ahead of 2019 levels for the March/April period, and its RevPAR is expected to be 18% ahead of 2019 levels for the May/June period.
RevPAR in Dublin for the May/June period is expected to be 18% ahead of the same period in 2019, while RevPar in the UK and regional Ireland for the May/June period is expected to be 7% and 27% ahead of 2019 levels, respectively.
Dalata is expecting adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be in excess of €81 million for the six month period that ends on 30 June 2022.
Dalata also said that it is pleased to announce the completion of the sale of the Clayton Crown Hotel, London to a company that is controlled by AG Hotels Group for a cash consideration of approximately £21 million, and that it expects to conclude the sale of the Merrion Road residential units to Irish Residential Properties REIT plc for €42 million in the coming weeks.
Statement By Dalata CEO
The statement published on DalataHotelGroup.com/investors/latest-financial-news included a statement from Dalata CEO Dermot Crowley that said, "I am very pleased with the manner in which demand has recovered across our markets since COVID restrictions were lifted earlier in the year. Our teams in our hotels and central office have responded incredibly well to the swift recovery. Our focus on the development of our people and our strategy of keeping our core teams in place throughout the pandemic is underpinning our ability to fully operate our hotels despite the backdrop of a tight labour market. Our new hotels in Manchester, Bristol, Dusseldorf and Dublin are also trading very well and we look forward with confidence to the opening of the Clayton Hotel Glasgow City and Maldron Hotel Merrion Road in Dublin in the coming months, adding much needed additional supply to the market.
"I recognise concerns about rising hotel prices in Ireland. Our average room rate in Dublin for the second quarter of 2022 was €160. This is an increase of 20% over 2019 (on a like-for-like basis). Dublin’s highly competitive market is experiencing a period of exceptional pent-up post-pandemic demand at a time when supply is temporarily reduced as a direct consequence of the war in Ukraine. In June, our Dublin hotels are expected to reach an occupancy of 93%. Despite widespread cost inflation, we continue to honour longstanding agreed prices, including those in place for over 160,000 coach tour guests we are welcoming over this summer.
"We will continue to assist the Irish government in its response to the crisis created by the war in Ukraine by making 5% of our rooms in the Republic of Ireland available to the Department of Children, Equality, Disability, Integration and Youth for the remainder of this year at the rates requested.
"We look forward to the balance of the year with confidence whilst being aware of the potential threats caused by the general economic outlook. We are excited by the potential of our recently opened hotels and by those in the pipeline. We have strong teams in place and we will be agile and innovative in responding to any challenges that may emerge."
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