Dalata Hotel Group Records 60% Decrease In Revenue
Dalata Hotel Group has released its financial results for the six month period that ended on June 30, 2020, revealing that its revenue decreased by 60% year-on-year during the period to €80.8 million.
Meanwhile, the group's adjusted earnings before, interest, tax, depreciation and amortisation (EBITDA) decreased by 86.2% year-on-year during the period to €10.1 million; its average room rate decreased from €110.30 to €95.28; its revenue per available room (RevPAR) decreased from €88.48 to €32.69; its occupancy rate decreased from 80.2% to 34.3%; and the group experienced a €70.9 million loss before tax.
Additionally, Dalata's cash/available facilities increased from €162 million in December 2019 to €175 million in June 2020, and the group had cash of €110 million and undrawn committed debt facilities of €111 million at the end of August.
Dalata also said that it has a strong asset backed balance sheet, with €1.2 billion in hotel assets despite total revaluation losses of €161 million, which arose from independent asset valuations in June 2020 and represent a decrease of approximately 12% on valuations at December 2019.
Dalata has now reopened all of its hotels, and its occupancy rates were 30% in July and 40% in August. The group expects its adjusted EBITDA to be in the range of €7.0 million to €7.5 million for the July and August period. However, it noted that the outlook for the near term remains uncertain at present with short lead time on bookings.
"Determined To Emerge Stronger From The Impacts Of COVID-19"
Dalata CEO Pat McCann stated, "We remain focused on protecting the business, our people and our financial strength as we position the business for a successful recovery and to look for growth opportunities that may arise out of the crisis. Our key strengths continue to be our culture and people, our asset backed balance sheet, our strong liquidity position, our experienced management team and our record of identifying and securing opportunities in a crisis.
"There are many challenges ahead, but the Dalata team has demonstrated that it is up for those challenges and determined to emerge stronger from the impacts of COVID-19."
© 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.