DJ Dalata Hotel Group PLC: HY 2024 Trading Update
Dalata Hotel Group PLC (DAL,DHG)
Dalata Hotel Group PLC: HY 2024 Trading Update
27-Jun-2024 / 07:00 GMT/BST
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HY 2024 Trading Update
ISE: DHG LSE: DAL
Dublin and London | 27 June 2024: Dalata Hotel Group plc ('Dalata' or the 'Group'), the largest hotel operator in
Ireland, with a growing presence in the United Kingdom and Continental Europe, provides a trading update for the first
six months of 2024.
As outlined at our AGM in April, the trading environment was quieter in the early months of the year, with Group RevPAR
[i] 4% behind 2023 levels, driven by supply dynamics in key markets and a lower number of events. However, the trading
environment has improved as we have entered what is typically a busier period for hoteliers. For May and June, all four
regions are expected to outperform 2023 with Group RevPARi 3% ahead of 2023 levels. Corporate demand remains strong and
ahead of last year. For the six months ending 30th June 2024, Adjusted EBITDA[ii] is expected to be in excess of EUR105
million, surpassing 2023 levels, with RevPARi for the Group marginally below 2023 levels (-1%).
While it remains an on-going challenge, the Group continues 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.
Dermot Crowley, CEO, Dalata said:
"The Group's RevPARi 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. Within the Irish market, we are not yet
seeing any material impact of industrial action at Aer Lingus, though any prolonged dispute presents risk to the wider
industry in Ireland. The refresh of our consumer brands, Maldron and Clayton, has been well received and we have
launched a new customer experience training programme across our hotels to bring our signature brand of customer
experience, the Heart of Hospitality, to all guests.
We continue to execute on our UK growth strategy and will increase our UK footprint by 20% in 2024 equating to 838 new
rooms. We opened the new Maldron Hotel Manchester Cathedral Quarter in May, and we will welcome our first guests to our
Maldron Hotels in Liverpool and Brighton followed by the opening of Maldron Hotel Shoreditch, London over the next two
months. We remain focused on delivering strategic growth supported by our strong balance sheet, cash generative
business and skilled teams. I am excited by the quantity and quality of opportunities we are assessing, as we continue
to build on our ambitious growth strategy".
-ENDS-
About Dalata
Dalata Hotel Group plc is a leading hotel operator backed by EUR1.7bn in freehold and long leasehold assets in Ireland
and the UK. Established in 2007, Dalata has become Ireland's largest hotel operator with an ambitious growth strategy
to expand its portfolio further in excellent locations in select, large cities in the UK and Continental Europe. The
Group's portfolio comprises 54 primarily four-star hotels operating through its two main brands, Clayton and Maldron
Hotels, with 11,601 rooms and a pipeline of 1,364 rooms. For the year ended 31 December 2023, Dalata reported revenue
of EUR607.7 million, basic earnings per share of 40.4 cent and Free Cashflow per Share of 59.7 cent. Dalata is listed on
the Main Market of Euronext Dublin (DHG) and the London Stock Exchange (DAL). For further information visit:
www.dalatahotelgroup.com
Contacts
Dalata Hotel Group plc investorrelations@dalatahotelgroup.com
Dermot Crowley, CEO Tel +353 1 206 9400
Carol Phelan, CFO
Niamh Carr, Head of Investor Relations & Strategic Forecasting
Joint Group Brokers
Davy: Anthony Farrell Tel +353 1 679 6363
Berenberg: Ben Wright Tel +44 203 753 3069
Investor Relations and PR | FTI Consulting Tel +353 86 401 5250
Melanie Farrell dalata@fticonsulting.com
Note on forward-looking information
This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Group will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.
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[i] Group RevPAR is stated on a 'like for like' basis and excludes the performance of hotels that newly opened or ceased trading under the Group during the comparative years.
[ii] Refer to the Supplementary Financial Information within the Group's results announcement for the year ended 31 December 2023.
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ISIN: IE00BJMZDW83, IE00BJMZDW83 Category Code: TST TIDM: DAL,DHG LEI Code: 635400L2CWET7ONOBJ04 OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 330471 EQS News ID: 1934125 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
June 27, 2024 02:00 ET (06:00 GMT)
