DJ Dalata Hotel Group PLC: FY 2024 Trading Update
Dalata Hotel Group PLC (DAL,DHG)
Dalata Hotel Group PLC: FY 2024 Trading Update
18-Dec-2024 / 07:00 GMT/BST
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FY 2024 Trading Update
Adjusted EBITDA in excess of EUR232m
2024 Revenue and Adjusted EBITDA ahead of 2023
Focus on innovation continues to enhance productivity
ISE: DHG LSE: DAL
Dublin and London | 18 December 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 second
half of 2024.
Trading has remained robust and, coupled with the positive impact of recent hotel additions in 2023 and 2024, the Group
now expects to deliver Adjusted EBITDA1 in excess of EUR232 million for the year, c. 4% growth year-on-year. Group RevPAR
2 is expected to be c. 3.5% ahead of last year for November / December with strong performances in Dublin and the UK.
For the full year, Group RevPAR2 is expected to be 1% ahead of 2023.
The Group estimates that the recently announced changes in UK National Insurance, the increased minimum wage rates in
Ireland and the increased living wage rates in the UK will increase hotel payroll by c. 5% in 2025 on a 'like for like
basis'. The Group continues to respond proactively to cost pressures and is confident it will cover these additional
costs with the benefit of a EUR2 million reduction in contracted energy pricing, the ongoing roll out of further
efficiency and innovation initiatives and through RevPAR growth in our markets. In 2025, the Group will also benefit
from the full year impact of hotels opened in 2024 and the addition of Radisson Blu Hotel Dublin Airport (subject to
Competition and Consumer Protection Commission "CCPC" approval).
Dermot Crowley, CEO, Dalata said:
"We are on track to deliver another strong financial performance, headlined by another year of growth in both our
revenue and Adjusted EBITDA1 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 EUR600 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".
-ENDS-
About Dalata
Dalata Hotel Group plc is a leading hotel operator backed by EUR1.7bn in hotel assets primarily 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 a mix of owned and leased hotels with 56 primarily four-star hotels operating through its two main
brands, Clayton and Maldron Hotels, with 12,150 rooms and a pipeline of over 870 rooms. For the six-month period ended
30 June 2024, Dalata reported revenue of EUR302 million, basic earnings per share of 16.0 cent and Free Cashflow per
Share of 21.5 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 87 737 9089
Sam Moore / Rugile Nenortaite Tel +353 85 277 9905
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.
1 Refer to the Supplementary Financial Information within the Group's interim results announcement for the six-month period ended 30 June 2024.
2 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 periods.
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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.: 365748 EQS News ID: 2053285 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
December 18, 2024 02:00 ET (07:00 GMT)
