Dalata Records Rise In Revenue
Dalata Hotel Group has revealed that its revenue rose 9.3% to €429.2 million during the year that ended on December 31, 2019.
Meanwhile, the group's earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by nearly 13% to €134.8 million and its basic earnings per share rose 7.5% to 46 cent.
The Irish Times quotes Dalata chief executive Pat McCann as saying, "I am delighted that we generated over €100 million in free cash flow for the first time in the history of the group. Our continued strong cash generation and our strong balance sheet allows us to fund acquisitions and development in a sustainable and disciplined manner. It also allows us to fund a progressive dividend policy."
Dalata's revenue per average room (RevPAR) decreased by 3.1% in Dublin last year while its like for like RevPAR dropped 1% in regional Ireland. In the UK, the group's RevPAR outperformed in regional markets while London hotels outperformed local markets.
McCann commented, "We are mindful that Dalata is exposed to global headwinds that can impact the hospitality sector. We expect approximately another 1,900 hotel rooms will open in Dublin during 2020 and the digestion of this new supply will have an impact on the market. However, I remain encouraged by the strong forecasts for the Irish economy, further job creation by multinational companies and the continued demand for bedrooms."
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.