Dalata Growth Continues

Dalata Hotel Group says that the strong recovery in trade has continued in the second half of the year.

Annual revenue is expected to exceed €0.5 billion for the first time in the Group’s history. Adjusted EBITDAI for the year ending 31 December 2022 is expected to be in excess of €182 million.
"Like for Like" Group RevPARii was 21% ahead of 2019 levels for the September to November 2022 period, with all of the Group’s regions performing well.

Corporate bookings have picked up after the summer period; there is continued strong leisure demand and a notable increase in North American visitors supported by the favourable USD exchange rate.

Supply in Ireland remains constrained due to rooms in use for government related business, primarily the provision of emergency accommodation for refugees. The timing and degree to which these rooms will return to the market remain uncertain.

The Group’s new hotels are performing ahead of expectations. Occupancy for the September to November period was 79% for the seven hotels added to the Group between August 2021 and September 2022. Dalata rebranded the Hotel Nikko Düsseldorf to Clayton Hotel Düsseldorf in December.

The business energy supports in Ireland and the UK are welcomed by Dalata. Due to the impact of these and other factors, the Group now expects gas and electricity costs for 2022 to be approximately €32 million (versus previous guidance of €34 million).

The Group is cognisant of the cost-of-living challenges and has announced pay increases of 6.5% for employees earning below €13/£13 per hour and 4% for those earning above this level, effective from 1 January 2023.

The Group is cautiously optimistic on its outlook for 2023. Engagement with corporate customers and tour operators on demand and pricing has been positive. There are also positive demand indicators in Ireland and the UK, including on the resumption of more normalised conference business levels and the continuing return of international travellers, in particular from the US market. 

The Group also continues to develop its pipeline hotels with the construction of the Maldron Hotel in Shoreditch, London progressing well and scheduled for completion in December 2023. The Group also has three more UK Maldron Hotels under construction in Brighton, Liverpool and Manchester, all scheduled to open in Q2 2024. Maldron Hotel Croke Park, Dublin is scheduled for completion in H2 2025.