Dalata reports 30% jump in revenue in its maiden results

Hotel group Dalata reported a 30.4 per cent boost in revenue in its maiden financial results as a public company on Tuesday, as it annouced its latest acquisition, the Holiday Inn Hotel in Belfast, and plans to rebrand the Moran Bewleys Hotels under the new four-star brand Clayton Hotels.

Revenues at the group, which floated on the Dublin Stock Exchange in March 2014, advanced by 30.4 per cent to €79 million in year to December 31st 2014, while pre-tax profits soared to €4.2m from €0.07m in 2013. Earnings (EBITDA) rose by 54 per cent to €8.2 million, and group revpar increased by 15.7 per cent on a ‘like for like’ basis primarily due to a 13.4 per cent increase in average room rate. Rents at the hotels it leases rose by 17.3 per cent to €16.2 million.Dalata has negotiated a term loan facility of € 282 million to part fund acquisitions and the group had no debt outstanding as of year-end 2014.

Pat McCann, CEO, said that the business performed “very strongly”, with all hotels showing revenue growth.

“The outlook is encouraging for the markets we operate within. However, recovery in provincial Ireland is still fragile and I welcome the continued support of the Government for the tourist industry. This support has contributed to increased visitor numbers and the creation of 30,000 new jobs,” he said.

While the Dublin market has recovered strongly, Dalata said that it has also seen “the beginning of a recovery in our provincial Ireland hotels where all properties showed revenue increase”.

Since the group's IPO in March 2014, at which it raised €256m net of costs, it has invested the full proceeds 12 months ahead of schedule. Its investments included the Maldron Hotel Pearse Street (Dublin), Maldron Hotel Parnell Square (Dublin) and Maldron Hotel Derry in 2014, as well as the Clayton Hotel (Galway), Whites Hotel (Wexford) and Pillo Hotel (Galway) in 2015. Its new Clayton brand will be rolled out to thirteen of its hotels over the next six months, while the Maldron brand will be used in 14 of its properties.

In a note Davy Stockbrokers said that the company “is in great shape as it enters the next stage of its evolution”.

Dalata also said on Tuesday that it has acquired Belfast’s Holiday Inn Hotel for £18.5m (€25.7m), its first owned property in Belfast. The hotel is a 4 star hotel located in the city centre, close to the business and shopping district of Belfast. The hotel contains 170 bedrooms, 40 car spaces, a full leisure centre with pool, a restaurant and nine custom built seminar and meeting rooms as well as a ballroom that can cater for up to 600 people.

Dalata said that the acquisition will allow the group to expand its position in Belfast where it already operates the Maldron Hotel Belfast.