The owner of the Clayton and Maldron hotel chains expects to deliver 4% earnings growth this year.
In an end of year trading update, Dalata Hotel Group – which operates across Ireland, the UK, Germany and the Netherlands – said trading, of late, has been “robust” and has been helped by the impact of recent hotel additions to its portfolio.
It said adjusted earnings should be up by around 4% this year, to over €232m, while RevPAR (revenue per available room; a key growth metric for hotels) should be up by around 3.5% for this November/December period, led by particularly strong performances in Dublin and the UK.
Dalata Chief Executive Dermot Crowley, said: “We are on track to deliver another strong financial performance, headlined by another year of growth in both our revenue and Adjusted EBITDA performance. Our focus on innovation over the last three years continues to deliver enhanced productivity and mitigate the impact of cost inflation on our margins. It is always challenging when external input costs are rising; however, I am delighted with how everyone at Dalata has responded to the challenge.
“We executed a number of strategic objectives during the year. We opened four new hotels in the UK this summer, we added to our growth pipeline with the acquisition of the Radisson Blu Hotel Dublin Airport and we exchanged an agreement for lease for a Clayton hotel to be developed in the heart of the City of London.
“Our growth is supported by our investment in our brands, which has enhanced our guests’ experience and driven a stronger market position. We also completed the refinancing of our debt facilities, securing a €600 million debt package including our inaugural private placement. This positions us strongly to capitalise on any opportunities that will deliver accretive value to the business and further strengthen our financial performance. We will continue to balance disciplined growth, capital efficiency and financial strength with returns to shareholders reflected by our dividend payments and two share buy-back programmes.
“The ability of Dublin Airport to continue to increase passenger numbers is crucial to support further growth across the Irish economy, particularly in the hospitality and tourism sectors which are key sources of employment for the island of Ireland. Looking forward, I am pleased that the cap will not apply in the summer of 2025, and we are hopeful that it will be removed fully in time. It is expected that passenger numbers at Dublin Airport will grow by 4% in 2025, with increased access from North America, which will be very positive for hotels across the whole of Ireland.
“I look forward to 2025 with optimism. I am very happy with the early trading performance of the four hotels we opened in 2024 and I look forward to Dalata benefitting from their full year impact next year. The addition of the Radisson Blu Hotel at Dublin Airport (subject to CCPC approval) is very exciting and will positively impact on 2025 performance. Our focus is on delivering our exciting 2030 Vision growth strategy to increase our footprint to 21,000 bedrooms”.
