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Dalata to close some hotels

Dalata Hotel Group expects its revenue in the quarter to the end of March to be down about 16% compared to the same time last year due to the "unprecedented" Covid-19 mccann0320situation.It said the combination of major public events being cancelled, the introduction of travel restrictions and the redefining of the use of hotels by both the Irish and UK governments has severely impacted the business over the last two week.

"We expect that to continue for as long as the current restrictions on movement and travel remain," the hotel group said.
In a trading update, Dalata also said that it will have to temporarily close several of its hotels in Ireland and the UK over the coming days and significantly reduce operating capacity at its remaining hotels. 


It is implementing a combination of reduced working hours for some employees as well as a progressive, temporary reduction of basic salary for those whose hours have not been reduced. 
The Dalata board has also taken reductions in basic pay and fees - these reductions will be in place for an initial two months and be reviewed on a rolling basis.
The company also said it has had to temporarily lay off a large number of employees for whom it currently has no work.
Welcoming the income support initiatives announced by the Irish and UK Governments in response to the Covid-19 outbreak, the company said it will seek to avail of these schemes and retain the link between these employees and Dalata. 
"These staff members remain part of the Dalata team and the group looks forward to welcoming them back to work as soon as our business recovers," it stated.
As a consequence of the uncertain outlook and in order to preserve the Group's liquidity, Dalata said it has decided to withdraw its proposed final dividend of 7.25 cent per share.



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