Dalata Hotel Group has published its results for the six-month period that ended on 30 June 2022.
Details
According to a statement published on DalataHotelGroup.com, the group’s business levels surpassed those of pre-pandemic H1 2019, with revenue increasing by 9%, to €220.2 million, and adjusted EBITDA increasing by 14%, to €83.5 million, while group revenue per available room (RevPAR) went up by 5% when compared to H1 2019, and by 18% when compared to May/June 2019. The group experienced a post-tax profit of €46.7 million in H1 2022, compared to €32.7 million in H1 2019, and its free cash flow in H1 2022 was €56.6 million, compared to €45.2 million in H1 2019.
The group has added 1,600 rooms in the year to date, after adding five hotels in H1 2021, and a further hotel opened in August. The group entered into a lease for its first hotel in Continental Europe. It opened the Maldron Hotel Merrion Road, in Dublin, in August, its 50th hotel – the Clayton Hotel Glasgow City – will open in October, and it currently has hotels under construction in Brighton, Liverpool, London and Manchester, according to the statement published on DalataHotelGroup.com.
The statement also revealed that Dalata had net debt to EBITDA after rent of 1.9x as of 30 June 2022, compared to 2.8x at 31 December 2019. It had net debt to value of 17%, compared to 24% at 31 December 2021, it had cash and undrawn committed debt facilities of €365.2 million, compared to €298.5 million at 31 December 2021, and it owned assets of €1.3 billion, which includes costs that were incurred in relation to two development assets – the Maldron Hotel Merrion Road, in Dublin, and the Maldron Hotel Shoreditch, in London – as of 30 June this year.
Additionally, the statement published on DalataHotelGroup.com noted that the group’s trade is continuing to perform strongly, with like-for-like group ARR of €151 and group occupancy of 89% for the July/August period. Like-for-like group RevPAR is expected to be €134 for the July/August period, which is 25% ahead of 2019 levels. Like-for-like RevPAR for the July/August period is expected to be 21% ahead of 2019 levels in Dublin, 36% in regional Ireland, and 15% in the UK. The group is continuing to progress its pipeline of 1,125 rooms, which it expects to open between next year and 2025, and it is also actively looking at new opportunities across all of its regions.
Statement By Dalata CEO
The statement published on DalataHotelGroup.com included one from its CEO, Dermot Crowley, wherein he said, “The first half of 2022 was a period of strong recovery after the lifting of Covid-related restrictions at the end of January. The year to date has also been very busy on the development front, with the addition of six hotels – 1,600 rooms – across four cities. This includes our first exciting step into Continental Europe, as we entered the lease for Hotel Nikko Düsseldorf. Despite a challenging start to the year, we delivered revenues of €220.2 million for the period, exceeding the levels achieved in the first half of 2019.
“Over the last two years, financial stability has been a key focus for our team. I am especially happy to report that our balance sheet has significantly strengthened since the start of the year, which ensures we have the capability to exploit opportunities to expand the portfolio further.
“As a company, we have taken a responsible approach to pricing during the strong market recovery. Our average room rate in Dublin during the four-month period from May to August was strong but reasonable, at €166 per night. We value greatly long-term relationships, such as those we enjoy with our coach tour operators, corporate customers, sporting organisations, event organisers, and airlines.
“ESG remains a key business focus for our central office team and across each of our hotels. How we operate sustainably and the impact we have on the environment is fundamental to decisions made every day across the group. I am delighted to report that we reduced our energy consumption per room sold by 17% in Q2, compared with 2019. This is driven by our recently opened Dalata-built hotels, which are more energy efficient, along with our good operational practices and initiatives, and is tangible evidence of our capability to meet the challenge of responding to climate change issues.
“We continue to explore innovative and new ways in which we operate our hotels, for the benefit of all stakeholders, and are conscious of the need to mitigate the impact of inflation on our cost base. While technology will play a crucial role in managing costs, going forward, the interest rate on our term debt to October 2024 is fixed and 60% of our rent is fixed until 2026, which will support us in the period ahead.
“I am personally delighted with the progress we have made since the start of 2022. The achievements are the result of the expertise and commitment of the teams that operate throughout Dalata. I want to personally thank the entire team of people within Dalata for delivering six additional hotels and an excellent trading recovery. Despite the macroeconomic challenges, we look forward with optimism and enthusiasm to the months and years ahead.”
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