Dalata Hotel Group reports steady growth, plans expansion

DUBLIN and LONDON - Dalata Hotel Group PLC (ISE:DHG, LSE: DAL), the largest independent four-star hotel operator in the UK and Ireland, convened its Annual General Meeting (AGM) today, announcing continued growth and expansion plans. During the AGM, Chair John Hennessy highlighted the company’s strong operating performance, with revenue reaching €652 million and successful mitigation of cost inflation through innovation and efficiency projects.

The Group has expanded its UK presence with the opening of four new Maldron hotels in key cities and secured agreements for lease for future hotels in London and Edinburgh, slated to open in 2028. Additionally, a new Clayton hotel is set to be developed in Madrid, aligning with Dalata’s strategy to target gateway cities in Europe. The acquisition of Radisson Blu Hotel Dublin Airport is under review by the Competition and Consumer Protection Commission (Ireland).

Despite a slower than anticipated pickup in transient leisure business affecting March’s performance, the Group’s revenue per available room (RevPAR) for the January to April period is expected to align with the same period in 2024, with Dublin showing a 3% increase. The UK portfolio’s RevPAR is slightly behind last year’s figures, but the outlook for London is optimistic going into the summer months.

Dalata also announced a strategic review initiated on March 6th, exploring options to optimize capital opportunities and enhance shareholder value, which may include a potential sale of the Group. This review is still in progress.

The Group’s preliminary results had projected ’like for like’ Group RevPAR and Dublin RevPAR to be 2.5% and 5% ahead of the previous year for the first quarter. However, actual trading turned out to be lower than projected due to a slower pick up in transient leisure business. The company expects RevPAR to be lower in May and June compared to the exceptionally strong event calendar in 2024.

Dalata’s plans include the opening of Maldron Hotel Croke Park, Dublin, and Clayton Hotel St Andrew Square, Edinburgh next year, with further expansion discussions in Berlin and London. The company’s 2030 Vision aims for a portfolio of 21,000 rooms, either operational or in development.

This article is based on a press release statement from Dalata Hotel Group PLC.

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