Ireland’s largest hotel operator, the Dalata Hotel Group – which owns the Clayton and Maldron chains – has seen a slower start to the year for its Irish operations.
The group – which also operates in the UK, Germany and the Netherlands – told shareholders at its AGM in Dublin that the first four months of 2024 have seen good performance from its UK hotels, but “lower levels of trade in Ireland”.
That said, trade improved – particularly in Dublin – during March, compared to January and February.
Dalata chair, John Hennessy pointed to the increased VAT rate for the hospitality sector and the timing of certain events versus 2023 as the main reasons for the slowdown here. However, he stressed that the company is on course for further success and growth and upbeat about the rest of the year.
Addressing shareholders at the AGM, Mr Hennessy said: “We remain optimistic in our outlook for the remainder of the year where trade typically is driven by stronger seasonal factors, supported by a strong events calendar, flight schedules and forward bookings for May and June. We also look forward to the greater contribution from the ten hotels added to the portfolio since 2022 as they mature and the additional contribution from the four new hotels opening this year.“
Mr Hennessy added: “In March this year we celebrated 10 years since Dalata’s flotation on the stock exchange. Reaching this milestone encourages us to reflect on the strong progress and growth we have achieved during that time. In the year prior to flotation, the Group’s revenue was just over €60m, with hotel assets of €5m.
“Ten years on, Dalata has become the leading hotel operator in Ireland and has significantly expanded its footprint, with 53 hotels across Ireland, the UK and Continental Europe, delivering over €600m revenue in 2023 with hotels assets of €1.7bn at the end of last year. We remain committed to our belief that hospitality is all about people and Dalata’s success would not have been possible without the dedication and talent of our people who continue to deliver for our customers, our shareholders, and our other stakeholders.“
