Dalata Hotel Group has released half year results which shows revenue growth of 6% to €302.3 million and Adjusted EBITDA growth of 4% to €107.6 million.
The group noted trade was lower than expected particularly in Regional Ireland and the UK as a result of more measured consumer spending.
'Softer Trading'
"Trading has been softer than we expected of late and there is a return to a more measured domestic customer spending behaviour in Ireland and the UK," said Dermot Crowley, Dalata Hotel Group CEO.
"I continue to view Dublin as a great city in which to operate hotels. Despite the digestion of approximately 2,500 (9%) additional rooms in the city since January 2023 and the 4.5% VAT rate increase introduced on September 1st 2023, RevPAR1 for the period January to July is only down 5.4% versus last year for the market."
VAT Rate
Dalata noted in the results that demand from corporate and international visitors remains strong but the group is seeing a 'softening' from more cost conscious domestic customers relative to last year.
The group claims that the events calendar for the remainder of 2024 looks strong particularly in Dublin.
In addition, Dalata believes the impact of the 4.5% Irish VAT rate increase will be fully absorbed from 1 September 2024.
Inflationary Pressures
Dalata said it continues to proactively address inflationary pressures by rolling out new initiatives to drive efficiencies whilst enhancing customer experiences.
"The outlook for the Dublin economy is very encouraging, supported by rising population numbers, a significant growth in employment and strong international visitor numbers," said Crowley.
'Important Issue'
Dalata has also called for the passenger cap to be lifted at Dublin Airport.
"The passenger cap at Dublin Airport is an important issue for our business, and we remain hopeful that it will be resolved in the short term," said Crowley.
"The ability of Dublin Airport to continue to increase passenger numbers is critical to support further growth in the Irish economy, particularly in the hospitality and tourism sectors which are a key source of employment for the island of Ireland," said Crowley.
€30m Share Buyback Programme
Dalata also announced a €30 million share buyback programme and the appointment of corporate development director Shane Casserly as deputy chief executive.
"Our ambition is to announce over 6,500 additional rooms over the medium-term across all of our markets as we look to continue to grow in Regional UK, expand our presence in London and the large European cities and maintain our market share in Ireland," said Crowley.
"Dalata’s strong financial position and our experienced team ensures we are well positioned to continue to deliver sustainable growth and returns for our shareholders.”
