The Dalata Hotel Group has said it remains optimistic about its growth potential this year, despite seeing a significant drop in profits during the first six months of the year.
The group – which operates its twin Clayton and Maldron hotel brands across Ireland, the UK and Germany – has reported a net profit of €42m for the first half of 2023; 10% down on the same period last year.
Also, pre-tax profit was 3% down, year-on-year, at €50.4m.
However, Dalata’s hotel revenues surged by 30%, year-on-year, to €285m.
Management said it remains confident of annual growth on the back of the recovery in international travel, resurgent UK airport traffic and record numbers at Dublin Airport.
“While we continue to monitor potential slowdowns in demand, as a result of high inflation levels, we are not seeing any such indicators,” the group said.
“Our performance year to date has been exceptional, thanks to all of our teams throughout the business, whose commitment and dedication are evident in the results announced today and in the continuous delivery of our ambitious growth strategy,” said Dalata chief executive Dermot Crowley.
“We have continued to expand our asset portfolio with the two recent high-quality acquisitions in London which are both performing well. This speaks to the strength of our balance sheet and our development team’s ability to identify and deliver additional rooms in times of market volatility and uncertainty.
“The Group has delivered a record set of financial results and reported excellent customer and employee satisfaction scores. We have responded effectively to the challenge of rising costs through cost and revenue management initiatives, a focus on reducing utility consumption and adopting innovation across all areas of the business. Our ongoing investment in consumer research ensures that customer insights are continuously used to inform and guide decisions, from hotel designs to the food and beverage offerings we serve our customers,” he said.
