Dalata chief executive Dermot Crowley. Photo: Maxwell
Irish hotel group Dalata has reported revenue of €302.3m in the first six months of this year, up 6pc. Revenue per available room (RevPar1), a standard measure of hotel profitability, was down 1pc to €108.57, however.
Higher wage costs fed through to a drop in like for like earnings, but Dalata said it had made excellent progress reducing that impact through innovation and efficiency projects, in addition to reduced energy pricing.
The results for the first half of 2024 show profit after tax of €35.8m, down 15pc).
The board has declared an interim dividend of 4.1 cents per share, higher than in 2023 and announced a €30m share buy-back.
Dalata’s UK estate now exceeds 5,000 rooms, up 20pc since the end of 2023 with four new UK Maldron hotels opened this summer including leased properties in Manchester, Liverpool and Brighton and the freehold Maldron Hotel Shoreditch, in London.
Four projects in progress, primarily in the UK, representing an additional 700 rooms and management said the group continues to see exciting opportunities to deploy capital organically and via acquisitions.
Since the end of the half year ‘like for like’ RevPAR1 was 1pc ahead of 2023 levels for July / August. Trade was lower than expected particularly in Regional Ireland and the UK as a result of what management said was more measured consumer spending.
Demand from corporate and international visitors remains strong but the business reported a softening from more cost conscious domestic customers relative to last year.
Dermot Crowley, Dalata Hotel Group CEO, said the passenger cap at Dublin Airport is an important issue for the business.
“We remain hopeful that it will be resolved in the short term. The ability of Dublin Airport to continue to increase passenger numbers is critical to support further growth in the Irish economy, particularly in the hospitality and tourism sectors which are a key source of employment for the island of Ireland,” he said.
Last week Dalata denied that it had deliberately cancelling room bookings and then reselling the rooms at a higher price for nights when Oasis are due to play in Manchester next summer blaming it on a technical error.
In its results the group said it continues to see periods of good leisure demand around events.
