Dalata hails a “strong rebound” as trade tops pre-pandemic levels

Ireland’s largest hotel group Dalata said revenue and profits topped 2019 levels as the hotel industry recovered sharply from the impact of the pandemic.

na Trading Update, Dalata reported sales of €220.2 million for the six months ended June 30, 2022. This was an increase of €180.7m over the same period in 2021, when Ireland and the UK remained in lockdown.

This also meant an increase of 9 percent compared to the first half of 2019.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were EUR 83.5 million, up from EUR 1.4 million in the same period last year.

EBITDA was also up 14 percent from 2019 figures.

Earnings before taxes amounted to €52 million in the first half of the year. Dalata posted a loss of 37.8 million euros in the first six months of 2021 as travel restrictions prevented it.

Dalata, which operates the Clayton and Maldron brands, said room occupancy is now at 69.8 percent. This remains below pre-pandemic levels, which saw an average occupancy of 80.2 percent.

The hotel group said revenue per available room (RevPAR) increased 5 percent from 2019. The like-for-like RevPAR was €91.75 for the first half of 2022.

To date, more than 1,600 rooms have been added, while Dalata has also leased the Hotel Nikko in Dusseldorf, its first hotel in continental Europe.

Dalata said it was “cautiously optimistic” about the rest of the year, adding that supply in Ireland remained reduced due to the provision of emergency shelters.

The hotel operator said it doesn’t know when those rooms will come back on the market and has been using up to 5 percent of its rooms as emergency accommodation.

The company described the current trading environment as challenging, with food supply and payroll pressures. Dalata also highlighted energy as a particular issue, but the group has made appointment agreements for gas and electricity.

According to Dalata, the group either purchased or fixed prices for about 75 percent of its electricity use and 65 percent of its gas use for the remainder of the year.

This corresponds to “an estimated increase in gas and electricity costs from 13 million euros for the first half of 2022 to 21 million euros for the second half of 2022”.

Dalata Group Chief Executive Dermot Crowley said the year to date has been a period of strong recovery.

“As a company, we have practiced responsible pricing during the strong market recovery. Our average room rate in Dublin over the four months from May to August was strong but reasonable at €166 per night,” he said.

“We value the long-term relationships we maintain with our bus tour operators, corporate customers, sports organizations, event organizers and airlines.”

https://www.independent.ie/business/irish/dalata-hails-strong-recovery-as-trade-exceeds-pre-pandemic-levels-41949477.html Dalata hails a “strong rebound” as trade tops pre-pandemic levels

Fry Electronics Team

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