Dalata Experienced Adjusted EBITDA Loss Of €3.6m During First Quarter Of 2021
Dalata Hotel Group plc has revealed that it experienced an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss of €3.6 million during the first quarter of 2021. Dala...
Dalata Hotel Group plc has revealed that it experienced an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss of €3.6 million during the first quarter of 2021.
Dalata revealed its first quarter adjusted EBITDA loss ahead of its AGM, which will take place today (Thursday April 29) at Clayton Hotel Cardiff Lane on Sir John Rogerson's Quay at Grand Canal Dock in Dublin 2.
Additional Statistics And Information
According to Dalata, the group's chairman, John Hennessy, will make the following statement at the company's AGM, "The COVID-19 pandemic continues to have a significant impact on our business and daily lives. Since the start of January, our hotels have been closed to the general public, serving customers related to essential services only. For the first quarter of 2021, occupancies at our hotels were 14% in Dublin, 16% in regional Ireland and 13% in the UK. We continue to minimise the impact of lower revenues through proactive cost control and availing of government support. For the first quarter, the adjusted EBITDA loss was €3.6 million.
"We continue to protect our strong liquidity. The company had cash and undrawn debt facilities of €272 million at the end of March 2021. As a result of careful cash flow management, the cash outflow of €21 million for the first quarter of 2021 is in line with our expectations.
"We recently announced two senior management appointments. Dermot Crowley is to succeed Pat McCann as chief executive officer and Carol Phelan is to become group chief financial officer. I am delighted we were able to fill these positions internally in keeping with our strategy to develop our people and promote from within. They bring a wealth of experience and expertise to their new roles, and their extensive knowledge of the business and our culture will be vital as the business recovers from the impact of COVID-19 and positions itself for further growth. Our ability to appoint leaders from within reflects the strength of the team we have built, a process which has been led by Pat McCann, our founding CEO.
"We look forward to welcoming guests back to our hotels over the coming months. We expect hotels in the UK to reopen fully in the middle of May in line with the timetable set out by the UK government. The near-term outlook in Ireland is more uncertain, but we remain encouraged by the acceleration of the vaccine rollout. The Irish government have yet to announce when hotels can reopen to non-essential customers. We will reopen to all guests as soon as restrictions allow.
"We continue to progress our development pipeline of close to 3,300 rooms. We expect to open three new hotels before the end of this year. We have appointed the management teams, and they are busy getting ready to successfully launch these hotels. Four more hotels are due to open in the first half of 2022.
"While the protection of our people, our business and our cash remain our top priority, we are excited about the long term prospects of the company. Our portfolio of hotels is well-invested and we have built a solid foundation for future growth. The company's asset backed balance sheet remains robust and we have enhanced our reputation with developers and institutional landlords.
"We are repeating the independent audit of our health and safety practices by Bureau Veritas ahead of general reopening. This independent accreditation of our Dalata Keep Safe Programme will reassure our guests as they return to our hotels.
"Our people remain positive and motivated and are ready and waiting to deliver the excellent experience our guests are accustomed to when they stay at a Dalata hotel."
Development Pipeline Update
Outlining its current development pipeline, Dalata stated, "Dalata continues to progress the development pipeline of close to 3,300 rooms located in Dublin, London, Glasgow, Manchester, Liverpool, Birmingham, Bristol and Brighton. Maldron Hotel Glasgow and Clayton Hotel Manchester are scheduled to open in July and November 2021, respectively. Maldron Hotel Manchester and Clayton Hotel Bristol are expected to open in January 2022 and Clayton Hotel Glasgow is on track to open in Q2 2022. The phased return of construction in Ireland has commenced with residential construction reopening on 12 April and hotel construction expected to start in May. As a result, we expect the Samuel Hotel and Maldron Hotel Merrion Road to open in Q4 2021 and Q2 2022, respectively. Planning permission has been approved for Maldron Hotel Croke Park in Dublin, with the hotel on track to open in Q1 2024."
Non-Executive Director Retirement
Dalata has also announced that Alf Smiddy, who has been a director of the company since February of 2014, will retire from the company's board with effect from the conclusion of the company's AGM today (Thursday April 29).
Smiddy's retirement is part of the company's plans to refresh its board's non-executive membership.
Commenting on Smiddy's retirement from Dalata's board, Hennessy said, "Alf has made an immense contribution to Dalata during his time on the board. He has served as senior independent director, chair of the nomination committee and director with responsibility for engagement with staff. He has also served as a member of the audit and risk committee of the board. He has approached each of these responsibilities with energy and skill, and his input and advice as a director have been very valuable. On behalf of the board and the company, I would like to express my gratitude to Alf for his commitment and dedication during his time on the board, and I wish him well for the future."
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.