Dalata Hotel Group – which owns and operates the Clayton and Maldron hotel chains across Ireland, the UK, the Netherlands and Germany – has reported an improvement in trading; with all four of its geographic regions now expected to outperform their individual 2023 levels this summer.
In April, Dalata told shareholders at its agm, in Dublin, that the trading environment was quieter than usual in the early months of 2024, with group RevPAR (revenue per available room, which is a key growth and performance metric for hotel operators) 4% behind 2023 levels.
That, largely, was down to a quieter first quarter in terms of big global events in key regions.
However, since then Dalata has seen an improvement; stating in its half-year trading update that group RevPAR was 3% up, year-on-year for the busier months of May and June. For the first six months of the year, Dalata said it is confident of reporting adjusted earnings of more than €105m (which would be ahead of the same period last year) and RevPar only marginally down, year-on-year.
Dermot Crowley, CEO, Dalata said: “The Group’s RevPAR outperformed 2023 levels for May/June, which is reflected across each of our four regions. This is pleasing following what had been a more challenging start to 2024 RevPAR performance for the markets in which we operate, compared to 2023. In Dublin specifically, demand remains strong, however, the combination of increased supply and the increase in the VAT rate has impacted RevPAR in the first six months of the year.”
“I am pleased with our performance to date which reflects the hard work and professionalism of our teams in our hotels and at our central office. Our focus on innovation over the last three years has mitigated the impact of rising costs on our margins. As we look ahead, we are positive in our outlook for the summer period supported by future demand indicators across our markets, including growing air traffic forecasts and active event calendars.”
Dalata said inflation continues to be an “ongoing challenge”, but said it is continuing to “proactively respond” to inflationary pressures, particularly increasing rates of pay.
“The focus on creating a culture of innovation is delivering initiatives that are improving productivity, whilst enhancing both our employee and customer experience,” the group said in its trading update.
