Business

Recovery is exceeding expectations, according to Ireland’s largest hotel group

blank

Ireland’s largest hotel group, Dalata, said the hotel industry’s recovery was faster than expected and continued to beat the group’s expectations.

In a trading update for the second quarter of the year, Dalata said revenue per available room (RevPAR) for the March-April period was 9 percent above 2019 levels. This is expected to increase to 18 percent of pre-pandemic levels for the May-June period.

Dalata’s May-June RevPAR in the UK and regional Ireland is also expected to be 7 percent and 27 percent above 2019 levels, respectively.

The company, which runs the Clayton and Maldron brands, also said the recovery in Dublin has been “particularly strong” due to the combination of limited supply and increased demand. This comes as major events return to the city and weekend trips increase.

Dalata also attributed the reduction in supply to giving Ukrainian refugees access to emergency shelters.

The company expects adjusted EBITDA of around EUR 81 million for the six months ended June 30, despite limitations in the first two months of the year.

In 2021, the group recorded a loss after tax of 6.3 million euros on sales of 192 million euros.

The hotel operator is currently experiencing cost inflation across the business but says demand has not been impacted. Chief Executive Dermot Crowley said that despite this inflation, the group will continue to honor “long-term agreed prices” over the summer.

He added that the average room rate in Dublin has risen by a fifth since 2019, but the group’s hotels were expecting to hit 93 per cent occupancy in June.

“The outlook for the summer months looks positive and while inflation concerns remain, this is an industry-wide concern and strong room rates are helping to mitigate this,” said David Brohan, analyst at Goodbody.

“Encouragingly, the group has not seen any negative impact from the weaker macro backdrop either.”

Dalata has also completed the sale of the Clayton Crown Hotel in London for £21million (€24 million). The group owns 48 hotels in Ireland, the UK and continental Europe.

https://www.independent.ie/business/irelands-largest-hotel-group-says-recovery-is-surpassing-expectations-41800597.html Recovery is exceeding expectations, according to Ireland’s largest hotel group

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button