Dalata Hotel Group Plans Expansion
Published on Sep 25 2013 9:30 AM in Hotel
The largest chain in the country, the Dalata hotel group which operates 34 properties, is planning further expansion following strong sales growth in 2012, as the recovery in the country’s hotel market gathers pace.
Dalata’s operating profit more than doubled to €3.2 million but it still made a loss of €2 million after charging interest and tax. About €4.1 million of the interest charges, however, were paid out on loan notes held by the company’s shareholders, including McCann.
Dalata owns the 12-strong Maldron chain of three and four-star hotels, which includes one property in Cardiff. It also operates a further 22 unbranded hotels in Ireland under management contracts, mostly on behalf of banks and receivers. It is backed by TVC Holdings and private clients of Davy stockbrokers.
Dalata, founded in 2007 by the former Jurys Doyle chief executive Pat McCann, saw its revenues climb last year by 55 per cent to €54.1 million, according to accounts obtained by The Irish Times. It added five new properties in 2012.
“Trading conditions in the sector improved in 2012 with increased demand growth in Dublin. As the year progressed there was evidence of stabilization in the rest of the country,” Dalata’s directors said in a statement, before adding it is continuing to look for expansion opportunities.
“The outlook for 2013 is positive with further growth expected in earnings, driven by gathering and conferences and events, particularly in Dublin.”
Dalata highlighted the special 9 per cent VAT rate for tourism related services, and said it has boosted its trade.