TIDMDAL
RNS Number : 7159Z
Dalata Hotel Group PLC
19 December 2017
Year End Trading Update
Announcement of Maldron Hotel Glasgow & Acquisition
Update
Dublin, 19 December 2017 | Trading in the final four months of
the year has been as expected and EBITDA for the year ending 31
December 2017 will be in line with market expectations.
Market Review
The Dublin market has continued to be very strong for us in the
second half of the year with RevPAR at our hotels now up 9.5% for
the year to date as at the end of November. Likewise, RevPAR growth
in our Regional Ireland portfolio continues to be very strong with
an increase of 8.7% for the 11 months to the end of November. As we
had anticipated, RevPAR growth in our London hotels has been slower
in the second half of the year leading to lower growth in our
overall UK & Northern Ireland portfolio. However, the year to
date growth at the end of November was still the strongest of our
three regions at 10.4%.
The final four months of the year has continued to see progress
across the business. Hotel LaTour Birmingham and Clarion Hotel
Liffey Valley in Dublin have both been successfully rebranded as
Clayton hotels. There are now 19 Clayton hotels in Ireland and the
UK with over 4,800 rooms.
We continue to make excellent progress on our development
pipeline of over 1,840 rooms across the UK and Ireland:
-- 35 additional rooms, a new restaurant and refurbished meeting
facilities were completed at Clayton Hotel Dublin Airport in
November. An additional 106 bedrooms are on course to open in May
2018
-- Construction is coming to a conclusion at our 237 room
Maldron Hotel Belfast City which is now scheduled to open in
mid-March, 2018
-- Construction continues at Maldron Hotel Kevin Street, Dublin
and Clayton Hotel Charlemont, Dublin which are scheduled to open in
June and November 2018 respectively
-- Construction commenced on the 164 room Maldron Hotel South
Mall in Cork during November and is scheduled to be completed in
December 2018
-- Construction also recently commenced at the extensions in
Clayton Hotel Ballsbridge, Dublin (31 rooms) and Maldron Hotel
Parnell Square, Dublin (53 rooms) and which will open in August
2018 and December 2018 respectively
-- Construction at Maldron Hotel Sandyroad, Galway is well
underway where we are constructing an additional 64 rooms, new
meeting facilities as well as refurbishing all existing bedrooms
and the public areas. The project will be completed by June
2018.
-- The opening of Maldron Hotel Newcastle has been deferred from late 2018 to February 2019
-- The preparation for the planning process has commenced for
Clayton Hotel Glasgow and a formal planning application has been
submitted for Clayton Hotel Manchester.
New Hotel Development - Maldron Hotel Glasgow
We are delighted to announce that we have signed an agreement to
lease a new Maldron hotel to be built in Glasgow with McAleer &
Rushe. The new hotel will be a 4-star property ideally located on
Renfrew Street in the centre of Glasgow. The hotel will have circa
250 air-conditioned rooms, a bar, restaurant and conference
facilities. The construction of the hotel is subject to the receipt
of planning permission from Glasgow City Council.
Once construction is completed, Dalata will operate the hotel
under a 35-year operating lease, subject to five-year rent reviews
linked to the Retail Price Index. The hotel is projected to open in
the second half of 2020.
Clayton Hotel Cardiff Lane & Clayton Hotel Liffey Valley
We are also pleased to announce that we have entered into
agreements to acquire 24 suites (62 bedrooms) in the Clayton Hotel
Cardiff Lane for EUR8.7 million and a further 13 suites (18
bedrooms) in Clayton Hotel Liffey Valley for EUR2 million. These
transactions will result in Dalata owning 252 out of a total of 304
bedrooms in Clayton Hotel Cardiff Lane, and 261 out of a total of
361 bedrooms in Clayton Hotel Liffey Valley. The annual rent of the
suites at Clayton Hotel Cardiff Lane amounted to EUR0.467 million
in 2017. This transaction is consistent with our stated strategy of
buying out the freehold interests of those leased properties with
future unpredictable rent reviews.
Dermot Crowley, Deputy CEO - Business Development & Finance,
said: "2017 has been another very successful year for Dalata in
terms of trading at our existing hotels, the acquisition of new
hotels and building up a development pipeline in the UK. Our hotel
portfolio continues to perform very strongly across the all of our
regions. We are very happy to have secured the effective freehold
interests of additional rooms at both Clayton Hotel Cardiff Lane
and Clayton Hotel Liffey Valley.
We are delighted to have entered into an agreement to lease a
newly constructed Maldron hotel in Glasgow. We have a very strong
relationship with McAleer & Rushe who are currently building
our new hotels in Belfast, Newcastle and Charlemont, Dublin.
Today's announcement brings the number of UK hotels in our
development pipeline to 5 with a total of circa 1,350 rooms.
Given the pipeline of hotels due to open in the next year and
the continued strength of trading in our three regions, we look
forward to 2018 with confidence."
ENDS
About Dalata
Dalata Hotel Group plc is Ireland's largest hotel operator, with
a current portfolio of 38 hotels with over 7,600 rooms. Dalata
successfully operates Ireland's two largest hotel brands, Clayton
Hotels and Maldron Hotels across Ireland and the UK, as well as
managing a small portfolio of partner properties. 26 of the hotels
are owned by Dalata, nine hotels are operated under lease
agreements and three are operated under management agreements.
For the half year 2017, Dalata reported revenue of EUR161.8
million (full year 2016: EUR290.6 million). Dalata is listed on the
Main Market of the Irish Stock Exchange (DHG) and the London Stock
Exchange (DAL).
For further information visit: www.dalatahotelgroup.com.
Contacts
Dalata Hotel Group plc Tel +353 1 206 9400
Pat McCann, CEO
Dermot Crowley, Deputy CEO, Business Development and Finance
Sean McKeon, Company Secretary and Head of Risk and
Compliance
Davy Corporate Finance Tel +353 1 679 6363
Ronan Godfrey
Brian Ross
Anthony Farrell
Investor Relations and PR | FTI Consulting Tel +353 1 66 33
686
Melanie Farrell dalata@fticonsulting.com
This information is provided by RNS
The company news service from the London Stock Exchange
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