Dalata Revenue Up 33% To €130m, Seals Maldron Hotel Cork Deal
Ireland's largest hotel operator, Dalata Hotel Group, has announced that revenue was up 33% to €130.1 million, generating profit before tax of €18.2 million, in the first half of 2016.
Dalata, which recently revealed that it has entered exclusive discussions to acquire operating interests in Double Tree by Hilton Hotel in Dublin 4, the landmark hotel formerly known as The Burlington, reported that adjusted EBITDA increased by 50% to €35.3 million in the first six months of the year.
In announcing the results this morning (6 September), Dalata also revealed that it has completed the purchase of the freehold interest of Maldron Hotel Cork for €8.1 million, following the newly refurbished property going on the market for €6 million in late May.
The group added that it is involved in the construction of four new hotels in Dublin, Belfast and Cork, and extensions at four other hotels to add 400 full time roles to current employee base of 3,610 people.
Elsewhere in results, the group highlighted that RevPAR increased by 11.2% to €74.90 in the first half of the year, while a weaker sterling exchange rate reduced ‘euro denominated’ UK earnings by €0.6m,
Other strategic and operating highlights from the Dalata mid-term report include:
- €38.9 million spent on acquisition of leasehold interests and businesses of four Choice Hotels
in March 2016; €34.5 million spent on acquisition of freehold interest of three hotels.
- €30.8 million spent on acquisition of three hotel development sites in Dublin and Cork.
Exchanged contracts for purchase of development site in Belfast during the period which
subsequently completed on 5 August 2016. The four projects will create circa 675 rooms on the
island of Ireland.
- Increase in room numbers at owned and leased hotels to 6,601 at the end of June 2016.
- €13.2 million invested in hotel development and refurbishment in H1 2016.