Shares in hotel operator Dalata rose more than 2 percent on Wednesday as it provided a strong trading update ahead of the year-end.
The group, Ireland’s largest hotel company, said it had beaten expectations with sales this year set to surpass €500m – the highest ever for the group.
The company expects adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) to exceed €182 million for the year. In comparison, it was 162 million euros in the previous year.
On a comparable basis, revenue per available room between September and November this year was 21 percent of 2019 levels, with all regions performing well, according to Dalata, of which Dermot Crowley is managing director.
It said corporate bookings had picked up after the summer and there was continued strong leisure demand with a notable increase in visitors from North America. Visitor numbers from the US were boosted by the strong dollar.
“[Room] Services in Ireland remain restricted due to spaces being used for government related business, primarily the provision of emergency shelter for refugees,” noted Dalata. “The timing and extent to which these rooms will return to the market remains uncertain.”
In Dublin, Dalata’s revenue per available room for the September-November period was 18 percent higher on a like-for-like basis. In the rest of Ireland it was up 30 per cent, while in the UK it was 19 per cent higher.
It added that its new hotels are exceeding expectations. Between August 2021 and September this year, it added seven hotels to its portfolio. These properties have experienced a combined occupancy rate of 79 percent.
A new Dalata Hotel in London’s Shoreditch is due to open in December next year.
Three more Maldron-branded hotels are under construction in Brighton, Liverpool and Manchester, all due to open in the last quarter of 2024. The new Maldron Hotel Croke Park in Dublin is scheduled for completion in the first half of 2025.
Dalata also welcomed the support provided to businesses by the governments in Ireland and the UK, saying his electricity and gas bill for the year will be around €32 million. This compares to a previous estimate of 34 million euros.
The hotel group is “cautiously optimistic” for 2023, with positive demand from corporate customers and tour operators.
“Engagement with corporate clients and tour operators in terms of demand and pricing has been positive,” it said, adding that there are also signs of more “normalized” conference activity.
https://www.independent.ie/business/shares-in-hotel-firm-dalata-rise-on-solid-trading-update-42220067.html Shares in hotel company Dalata rise on solid trading updates