Dalata Announces Expansion Plans as Revenue Soars
Dalata has confirmed it will build new hotels in Dublin, as the hotel group announced H1 profits of €2.7 million and revenues of €97.7 million.
Profits in the six months up to the end of June were up from €900,000 for the same period last year, while revenue increased by 180 per cent from €35 million. The large increase was mainly due to the acquisition of nine Moran Bewley hotels in February, and a further five hotels in the six month period.
Speaking about the results, Dalata's chief executive Pat McCann said the company had been "transformed" by the new acquisitions and will seek to expand its portfolio by opening new hotels in Dublin City Centre and negotiating with Nama and the banks.
"We are in talks to both build and acquire hotels in the city centre but negotiations are at an early stage," said McCann. "The market has really picked up but there is a shortage of hotels, particularly in Dublin and other city locations." McCann had previously predicted an end to cheap hotel deals in the city.
Dalata confirmed it will raise €160 million through a share issue over the next few weeks, which was reported in the Sunday Independent last week.
In the six month period, the company has spent €523.7 million on acquisitions in Ireland and Northern Ireland, the majority of which went into the purchase of the nine Moran Bewley properties, including the former Bewley's Hotel in Ballsbridge (pictured), now part of the Clayton Hotel brand.