Dalata to hit €500m revenue milestone as trading exceeds expectations

Hotel group Dalata said trading was ahead of expectations amid strong recovery and continued expansion of the business.

The owner of the Clayton and Maldron brands said revenue would exceed €500 million in the year ended December 31st, 2022, the first time it has ever hit that milestone. Adjusted earnings before interest, tax, depreciation and amortisation (ebitda) for the year are expected to be more than €182 million, up from €162 million In 2019, before Covid took its toll on the hospitality industry.

Like-for-like group revenue per average room was up 21 per cent compared to 2019 levels in the period covering September to November 2022. Dalata said corporate bookings had increased after the summer period, with the strong US dollar leading to a noticeable increase in visitors from North America.

The group also noted continued supply constraints in the Irish market as the Government continued to use hotel rooms, primarily as accommodation for refugees.

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However, its new hotels are performing ahead of group expectations, with occupancy for the September to November period at 79 per cent for the seven hotels added to the group between August 2021 and September 2022.

Business energy supports in Ireland and the UK have cut guidance for gas and electricity costs for the year by €2 million, with the company expecting the bills to total €32 million for the year.

Looking ahead to the coming year, Dalata said it was “cautiously optimistic”, with positive engagement with corporate customers and tour operators on demand and pricing, and the resumption of more normalised conference business levels in the UK and Ireland.

The group said it would continue to monitor the macroeconomic backdrop and any potential for a slowdown, but had not seen any indicators of such in its trade levels to date.

The group is also continuing to add to its hotel portfolio, with the construction of a Maldron Hotel in Shoreditch, London scheduled for completion in December 2023, and three more under construction in Brighton, Liverpool and Manchester, scheduled to open in the second quarter of 2024. The Maldron Hotel Croke Park in Dublin is scheduled for completion in the second half of 2025.

Dalata’s chief executive, Dermot Crowley, said 2022 had been a successful year for the hotel group, with six new hotels opened, including Dalata’s first in continental Europe.

“We remain mindful of global inflationary cost pressures and the potential impact on consumer discretionary spending. We will continue to focus our efforts on protecting and growing the business sustainably as we have always done,” he said.

“Despite macroeconomic uncertainties, we remain confident in our ability to outperform with our well-invested product, ESG focus, decentralised operating model and track record of providing an excellent guest experience. As we look ahead, Dalata’s robust balance sheet, financial resources, pipeline of talented people and excellent reputation position us strongly for further growth.”