Ireland’s largest hotel operator, the Dalata Hotel Group has reported record revenues and a return to annual profitability as its post-Covid health continues to improve.
Dalata – which operates across Ireland, the UK and Germany via its Clayton and Maldron hotel brands – has reported pre-tax profits of €109.7m for 2022 and revenues of €558.3m.
The profit figure is a turnaround from the €11.4m loss made in 2021, but also – more crucially – is up from the €89.7m profit Dalata recorded in 2019, the last year to be completely unspoilt by the Covid pandemic crisis.
The revenue figure, meanwhile, is up from the €192m generated in 2021 and is even up 20% on the €429.2m Dalata generated in pre-Covid 2019.
Last year was the first year in which Dalata generated revenues of over €500m.
Speaking on the back of the results, Dalata Hotel Group chief executive Dermot Crowley said: “As I reflect on 2022, I am very pleased with the Group’s recovery and record performance. We have emerged from the pandemic and its after-effects with a business that has grown in scale and ambition. We are proud to have recently opened our 50th hotel with the completion of Clayton Hotel Glasgow City, to have added seven hotels to the Group’s portfolio during the year and to have exceeded €0.5 billion in revenues for the first time. We understand that the Group’s performance was achieved through the contributions of all our stakeholders whom we continue to place at the heart of all we do.
“When I assumed the role of CEO in November 2021, I positioned people, customer focus, growth, sustainability and innovation at the core of my strategic priorities. I wanted Dalata to retain the elements which have made it successful while responding to the new realities facing our industry, the after-effects of the pandemic and the current geopolitical events in Europe. I believe Dalata can respond effectively to the challenges faced by our industry utilising these strategic pillars to optimise our product offering, streamline our processes, drive innovation while maintaining a healthy bottom line and to manage and grow our business responsibly and sustainably.
“We welcome the supports received in 2022 from the Irish and UK governments in assisting the hospitality sector in its recovery from the pandemic and responding to inflationary pressures impacting businesses and consumers. These supports recognise the key role the hospitality sector plays in the economy and its importance to economic growth and job creation spread throughout the cities and regions in the countries in which we operate. The pandemic reminded us of the essential social contribution that hotels make in providing a place for people to connect and come together for social, leisure and corporate activities. Furthermore, we welcome the recent extension by the Irish government of the reduced VAT rate to support the hospitality sector.“
Mr Crowley added: “In 2023, Dalata is well set to capitalise on the opportunities that will undoubtedly arise in the markets in which we operate. I was pleased to recently launch our employer brand which further expands our capacity to be an employer of choice offering a rewarding career path with development opportunities across our growing international portfolio. We continue our ambitious UK expansion plans with the recent purchase of Maldron Hotel Finsbury Park, London due to open in summer 2023 to be closely followed by our Maldron Hotel Shoreditch, London.
“We remain confident in our ability to outperform with our modern hotel portfolio, our focus on sustainability, our decentralised operating model and our track record of providing a superior guest experience. As we look ahead, Dalata’s robust balance sheet, financial resources, pipeline of talented people and excellent reputation position us strongly for further growth. I believe Dalata offers a different way, a better way to deliver success and growth, sustainably for all our stakeholders.”
