Revenue per available room (RevPar) for the January to April period was 4pc lower than 2023 levels, with the group attributing this to increased supply, a rise in the VAT rate and a lower number of events.
However, as the group enters a typically busier season, Dalata now expects RevPAR for May and June to be 3pc higher than the same months last year.
The group’s RevPAR for the first half of 2024 is now set to be 1pc lower than the corresponding period in 2023, Dalata reported in an update today.
Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) is expected to be more than €105m in the first six months of 2024.
Last year, the group reported adjusted Ebitda of €103.4m.
Dalata expects a strong performance across its Irish and UK locations, as well as its hotels in Düsseldorf, Germany and Amsterdam in the Netherlands.
Corporate demand has been ahead of last year, the group reported.
Dalata also noted that it had not yet seen “any material impact” of ongoing industrial action at Aer Lingus. However, the group added that “any prolonged dispute presents risk to the wider industry in Ireland.”
“The Group’s RevPAR outperformed 2023 levels for May/June, which is reflected across each of our four regions,” chief executive Dermot Crowley said.
“In Dublin specifically, demand remains strong, however, the combination of increased supply and the increase in the VAT rate has impacted RevPAR in the first six months of the year,” he added.
Mr Crowley also said that the group’s UK footprint is set to grow by 20pc this year, which represents around 838 new rooms.
The Maldron Hotel Manchester Cathedral Quarter opened last month, with Maldron locations Liverpool, Brighton and Shoreditch, London set to welcome their first guests over the next two months.
Davy analyst Paul Ruddy wrote in a note to investors that the momentum in the busier part of the year is “encouraging”, adding that the group’s management is “positive in its outlook for the summer period.”
