Dalata reports 'record set of financial results'
Dalata Hotel Group has reported a "record set of financial results" with revenue growth of 29% as it continues to pursue expansion.
Ireland's largest hotel operator reported H1 2023 revenues of €284.8m (£244.1m), however pre-tax profits fell by 3% on the same period in 2022 standing at €50.4m (£43.2m).
RevPAR for the period stood at €109.42 (£93.79), up from €88.61 (£75.95) in 2022, with an average room rate of €139.50 (£119.57) and occupancy at 78.4%.
Dalata Hotel Group CEO Dermot Crowley said: "The group has delivered a record set of financial results and reported excellent customer and employee satisfaction scores. We have responded effectively to the challenge of rising costs through cost and revenue management initiatives, a focus on reducing utility consumption and adopting innovation across all areas of the business. Our ongoing investment in consumer research ensures that customer insights are continuously used to inform and guide decisions, from hotel designs to the food and beverage offerings we serve our customers.
"As a result of these efforts, we achieved a ‘like for like' hotel EBITDAR margin1 of 41.4% in H1 2023, exceeding the equivalent H1 2019 margin by 1.0%. As a company, we have taken a reasonable approach to pricing; our average room rate in Dublin during the four-month period from May to August was €177. We remain mindful that the current cost environment is highly dynamic, and our innovation and cost management measures will need to keep pace."
He added: "We have continued to expand our asset portfolio with the two recent high-quality acquisitions in London which are both performing well. This speaks to the strength of our balance sheet and our development team's ability to identify and deliver additional rooms in times of market volatility and uncertainty. Since IPO, we have delivered €0.5 billion in property value growth on our developments and acquisitions. In addition, we have our growing leased portfolio which is currently delivering €17.5 million EBITDA (after rent) in H1 2023 equating to a very strong 1.7x rent cover.
"As we open our current pipeline and secure new opportunities, I am confident that we will continue to create further value through the combined strength of our development and operating teams supported by our investment capacity. Our firepower potential provides scope to grow our property assets by €750 million in the medium term beyond our currently announced pipeline."
The last year has seen Dalata acquire the 89-bedroom Apex Hotel London Wall, since renamed the Clayton Hotel London Wall, and the Maldron Hotel Finsbury Park, both of which commenced trading under the group in July. The Maldron Hotel Shoreditch, London is expected to be completed in Q2 2024, bringing the group's London room portfolio to 876.
Three further leased hotels are under construction in Liverpool, Brighton and Manchester.
