The owner of the Clayton and Maldron hotel chains has said it has “considerable financial firepower” to expand further in the UK and mainland Europe.
Dalata Hotel Group – which is Ireland’s largest hotelier – has market leading positions, through both of its brands, in Ireland and the UK; and in the last year or so has expanded into continental Europe with single openings in Germany and the Netherlands.
On the back of its half-year financial results, the Dublin-headquartered hotel group said it has the money in place to fund its next wave of expansion in the UK – where it has been growing aggressively over the past 12 months – and to open in more large European cities, as well as for maintaining its market share in larger Irish cities.
Dalata said it is seeing “some signs” that the leasing market is starting to reopen. Group chief executive, Dermot Crowley told The Irish Times, that continental Europe will be Dalata’s growth engine in the coming years and pointed to big cities (as opposed to tourist resorts) in Spain, Portugal, Belgium and more in Germany as areas of interest.
Dalata’s half-year results show a 6% year-on-year rise in group revenue, to €302.3m, but a 15% drop in net profit to €35.8m.
One of its key performance indicators – RevPAR (revenue per available room) was 1% ahead, year-on-year, at €110.77.
In terms of outlook, Dalata said it continues to see good leisure demand and strong demand from corporate and international visitors, although there has also been a softening in domestic demand.
Mr Crowley said: “As I look ahead, I remain very confident on Dalata’s future growth prospects as we continue to deliver on our stated growth strategy, becoming a key four-star market player in targeted locations. While the quantum and timing of hotel investments vary from year to year, I am excited by the opportunities we are currently considering. Our ambition is to announce over 6,500 additional rooms over the medium-term across all of our markets as we look to continue to grow in Regional UK, expand our presence in London and the large European cities and maintain our market share in Ireland. Dalata’s strong financial position and our experienced team ensures we are well positioned to continue to deliver sustainable growth and returns for our shareholders”.
