HY
2024 Trading Update
ISE:
DHG
LSE:
DAL
Dublin and London |
27 June 2024: Dalata Hotel Group
plc (‘Dalata’ or the ‘Group’), the largest hotel operator in
Ireland, with a growing presence in the United Kingdom and
Continental Europe, provides a trading update for the first six
months of 2024.
As outlined at our AGM
in April, the trading environment was quieter in the early months
of the year, with Group RevPAR[i] 4% behind 2023 levels, driven by
supply dynamics in key markets and a lower number of events.
However, the trading environment has improved as we have entered
what is typically a busier period for hoteliers. For May and June,
all four regions are expected to outperform 2023 with Group
RevPARi
3% ahead of 2023
levels. Corporate demand remains strong and ahead of last
year. For
the six months ending 30th
June 2024, Adjusted
EBITDA[ii] is
expected to be in excess of €105 million, surpassing 2023 levels,
with RevPARi
for the Group
marginally below 2023 levels (-1%).
While it remains an
on-going challenge, the Group continues to proactively respond to
inflationary pressures, particularly increasing rates of pay. The
focus on creating a culture of innovation is delivering initiatives
that are improving productivity whilst enhancing both our employee
and customer experience.
Dermot Crowley, CEO,
Dalata said:
“The Group’s
RevPARi
outperformed
2023 levels for May/June, which is reflected across each of our
four regions. This is pleasing following what had been a more
challenging start to 2024 RevPAR performance for the markets in
which we operate, compared to 2023. 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. I am pleased with our performance to date which
reflects the hard work and professionalism of our teams in our
hotels and at our central office. Our focus on innovation over the
last three years has mitigated the impact of rising costs on our
margins.
As
we look ahead, we are positive in our outlook for the summer period
supported by future demand indicators across our markets, including
growing air traffic forecasts and active event
calendars. Within the
Irish market, we are not yet seeing any material impact of
industrial action at Aer Lingus, though any prolonged dispute
presents risk to the wider industry in Ireland. The refresh of our
consumer brands, Maldron and Clayton, has been well received and we
have launched a new customer experience training programme across
our hotels to bring our signature brand of customer experience, the
Heart of Hospitality, to all guests.
We
continue to execute on our UK growth strategy and will
increase our UK footprint by 20% in 2024 equating to 838 new rooms.
We opened the new Maldron Hotel Manchester
Cathedral Quarter in May, and we will welcome our first guests to
our Maldron Hotels in Liverpool and Brighton followed by the
opening of Maldron Hotel Shoreditch, London over the next two
months. We remain
focused on delivering strategic growth supported by our strong
balance sheet, cash generative business and skilled teams. I am
excited by the quantity and quality of opportunities we are
assessing, as we continue to build on our ambitious growth
strategy”.
-ENDS-
About
Dalata
Dalata Hotel Group plc
is a leading hotel operator backed by €1.7bn in freehold and long
leasehold assets in Ireland and the UK. Established in 2007, Dalata
has become Ireland’s largest hotel operator with an ambitious
growth strategy to expand its portfolio further in excellent
locations in select, large cities in the UK and Continental Europe.
The Group’s portfolio comprises 54 primarily four-star hotels
operating through its two main brands, Clayton and Maldron Hotels,
with 11,601 rooms and a pipeline of 1,364 rooms. For the year ended
31 December 2023, Dalata reported revenue of €607.7 million, basic
earnings per share of 40.4 cent and Free Cashflow per Share of 59.7
cent. Dalata is listed on the Main Market of Euronext Dublin (DHG)
and the London Stock Exchange (DAL). For further information
visit: www.dalatahotelgroup.com
Contacts
Dalata Hotel Group
plc
|
investorrelations@dalatahotelgroup.com
|
Dermot Crowley, CEO
|
Tel +353 1 206 9400
|
Carol Phelan, CFO
|
Niamh Carr, Head of
Investor Relations & Strategic Forecasting
|
Joint Group Brokers
|
|
Davy:
Anthony Farrell
|
Tel +353 1 679 6363
|
Berenberg:
Ben Wright
|
Tel +44 203 753 3069
|
|
|
Investor Relations
and PR | FTI Consulting
|
Tel +353 86 401 5250
|
Melanie Farrell
|
dalata@fticonsulting.com
|
Note on
forward-looking information
This Announcement contains
forward-looking statements, which are subject to risks and
uncertainties because they relate to expectations, beliefs,
projections, future plans and strategies, anticipated events or
trends, and similar expressions concerning matters that are not
historical facts. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of the Group or the
industry in which it operates, to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. The forward-looking statements
referred to in this paragraph speak only as at the date of this
Announcement. The Group will not undertake any obligation to
release publicly any revision or updates to these forward-looking
statements to reflect future events, circumstances, unanticipated
events, new information or otherwise except as required by law or
by any appropriate regulatory authority.