Dalata Recovery Continues

Dalata Hotel Group has reported profit after tax of €46.7m for the first half of the year.

This marked a significant improvement on the loss of €30.4m reported the same time last year when there were widespread closures across the sector due to Covid-19.

Dalata, which owns the Maldron and Clayton hotel chains, said its revenue for the six months to the end of June came in at just over €220m from €39.6m the same time last year. Revenue for the first half of this year also surpassed the levels achieved in the first half of 2019 (pre-Covid) by 9%, on the back of the expansion of its portfolio.

The hotel chain said its occupancy rate stood just below 70% with an average room rate of €126.89 during the six month period, up from €81.99 in 2021 and €110.30 in 2019. Its Revenue Per Available Room (RevPAR) jumped to €88.61 from €16.28 the same time last year. It also marked an increase on the rate of €88.48 in 2019.

The hotel group said that demand has largely returned across all segments, led by very strong leisure demand particularly around event dates and weekends.

It also said its corporate business returned, though the mix and profile were slightly more skewed towards non-international corporates as most US multinational corporates have not yet returned to pre-pandemic travel levels.

The supply of hotel rooms in Ireland is also temporarily reduced as a significant number of rooms are currently being utilised by the Government to accommodate refugees, notably those fleeing the war in Ukraine, it added.

Dalata's Group Chief Executive Dermot Crowley said the first half of 2022 was a period of strong recovery after the lifting of Covid-related restrictions at the end of January.