The Dalata Hotel Group – which owns the Clayton and Maldron hotel chains – has reported a slower start to the year, but said it remains “optimistic” for its financial and operational performance for 2024, as a whole.
The group – which operates across Ireland, the UK, Germany and the Netherlands – said the first four months of this year saw strong growth in the UK market, but a slowdown in business in Ireland.
Addressing shareholders at the group’s AGM in Dublin, today, Dalata chair John Hennessy, said: “2024 has commenced with good performance for our UK portfolio which is expected to achieve modest RevPARi growth on January to April 2023. We also continue to see healthy levels of corporate demand across all regions. As reported during our full year results in February, there has been lower levels of trade in Ireland. While the Dublin market continues to digest the impact of new supply, trade improved during March compared to January and February. The timing and nature of events compared to 2023 – such as the visit of US President in April 2023 – in addition to the increased VAT rate from September 2023 has had an impact during the first four months. RevPAR for the Group is expected to be 4% behind 2023 for the period of January to April on a ‘like for like’ basis.
“As we look ahead, 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 also touched on the fact that this year marks Dalata’s 10th anniversary as a public company.
“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 €60 million 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.“
