Dalata Hotel Group – the largest hotel operator in Ireland – held its AGM last week, at the Clayton Hotel Cardiff Lane, in Dublin.
The group noted that 2023 marked another record performance for Dalata, in terms of revenue and free cash flow generation.
In March, Dalata celebrated ten years since it had made its stock exchange flotation.
‘Expansion’
“In the year prior to flotation, the group’s revenue was just over €60 million, with hotel assets of €5 million,” said John Hennessy, chair of Dalata.
“Ten years on, Dalata has become the leading hotel operator in Ireland and has significantly expanded its footprint, with 53 hotels across Ireland, the UK and continental Europe, delivering over €600 million revenue in 2023, with hotel assets of €1.7 billion at the end of last year.”
UK Portfolio
In 2023, Dalata added a hotel in Amsterdam and two hotels in London, and secured a building conversion opportunity in Edinburgh.
Hennessy noted that 2024 has commenced with a good performance from the UK portfolio, which is expected to achieve modest RevPAR growth on January-April 2023.
Irish Market
As reported during its full-year results in February, there have been lower levels of trade in Ireland.
“While the Dublin market continues to digest the impact of new supply, trade improved during March, compared to January and February,” said Hennessy.
“The timing and nature of events compared to 2023 – such as the visit of US President in April 2023 – in addition to the increased VAT rate from September 2023, has had an impact during the first four months.”
New Hotels
RevPAR for the group is expected to be 4% behind 2023 for the period of January to April, on a like-for-like basis.
Dalata remains optimistic in its outlook for the remainder of the year, when trade is typically driven by stronger seasonal factors, supported by a strong events calendar, flight schedules, and forward bookings for May and June.
The group also expects greater contributions from the ten hotels that have been added to the portfolio since 2022 as they mature, and the additional contributions from the four new hotels opening this year.
‘Sense Of Pride’
“I feel a great sense of pride as I reflect on the growth, performance and operational enhancements we have achieved as a group over the past ten years,” said Hennessy.
“The business continues to be extremely well served today, by talented and experienced people who embody the Dalata culture and vision, which, together with our financial strength, positions us well as we look to the future, respond to challenges, and take advantage of opportunities as they arise.”
