Dalata CEO Pat McCann said during the hotel group's AGM on Wednesday April 29 that it has laid off 3,500 employees due to the COVID-19 crisis.
McCann said that he was sorry that the group has been forced to lay off staff as a result of COVID-19-related closures, but that contact with those who have been laid off is continuing via various programmes. He also said that the pay of those who have not been laid off have has been cut significantly.
"In A Strong Position"
In a statement from Dalata's chairman, John Hennessy, issued on the morning of April 29 before the AGM, it was revealed that the group's revenue per available room (RevPAR) decreased in the first quarter of 2020, but Hennessy said that the group is "in a strong position [financially] to trade through the [COVID-19] crisis."
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Talking to RTE following the AGM, McCann also asserted that Dalata can weather the crisis for the foreseeable future, saying, "On top of having obviously cash on the balance sheet, we also have a lot of assets on the balance sheet, so that gives us an opportunity to do other things without resorting to shareholders.
"So having the mix on the balance sheet of having owned, leased and managed assets means we are in a very strong position compared to a lot of our international competitors who have a majority of leased hotels on their balance sheet."
© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.