Dalata Releases Year End Trading Update
Published on Dec 19 2017 10:11 AM in Hotel tagged: Featured Post / Dalata Hotel Group / Clayton Hotel Charlemont / Clayton Hotel Dublin Airport / Clarion Hotel Liffey Valley / Maldron Hotel Kevin Street
According to Dalata Hotel Group's year end trading update, trading in the final four months of the year has been as expected and EBITDA for the year ending 31 December will be in line with market expectations.
The update reveals that the Dublin market has continued to be strong for Dalata in the second half of the year, with RevPAR at the group's hotels being up 9.5% for the year to date as at the end of November. Likewise, RevPAR growth in Dalata's regional Ireland portfolio continues to be strong with an increase of 8.7% for the 11 months to the end of November.
Meanwhile, RevPAR growth for the group's London hotels has been slower in the second half of the year, leading to lower growth in Dalata's overall UK & Northern Ireland portfolio. However, the year to date growth at the end of November was still the strongest of Dalata's three regions at 10.4%.
Additionally, the final four months of the year has seen Dalata rebrand both Clarion Hotel Liffey Valley in Dublin and the Hotel LaTour Birmingham as Clayton hotels. There are now 19 Clayton hotels in Ireland and the UK, with over 4,800 rooms.
Dalata also continued to make progress on its development pipeline of over 1,840 rooms across the UK and Ireland:
· 35 additional rooms, a new restaurant and refurbished meeting facilities were completed at Clayton Hotel Dublin Airport in November. An additional 106 bedrooms are on course to open in May 2018.
· Construction is coming to a conclusion at the 237 room Maldron Hotel Belfast City, which is scheduled to open in mid-March 2018.
· Construction continues at Dublin Maldron Hotel Kevin Street and Clayton Hotel Charlemont, which are scheduled to open in June and November 2018 respectively.
· Construction commenced on the 164 room Maldron Hotel South Mall in Cork during November and is scheduled to be completed in December 2018.
· Construction also recently commenced at the extensions in Clayton Hotel Ballsbridge, Dublin (31 rooms), and Maldron Hotel Parnell Square, Dublin (53 rooms), which will open in August 2018 and December 2018, respectively
· Construction at Maldron Hotel Sandyroad, Galway, is well underway where Dalata is constructing an additional 64 rooms and new meeting facilities, as well as refurbishing all existing bedrooms and public areas. The project will be completed by June 2018.
· The opening of the Maldron Hotel Newcastle has been deferred from late 2018 to February 2019.
· The preparation for the planning process has commenced for the Clayton Hotel Glasgow and a formal planning application has been submitted for Clayton Hotel Manchester.
On top of all of the above, Dalata has announced the signing of an agreement to lease a new Maldron hotel to be built in Glasgow with McAleer & Rushe. The new hotel will be a 4-star property with circa 250 air-conditioned rooms, a bar, restaurant and conference facilities, planned to located on Renfrew Street.
The group has also just announed that it has entered into agreements to acquire 24 suites (62 bedrooms) in the Clayton Hotel Cardiff Lane for €8.7 million and a further 13 suites (18 bedrooms) in Clayton Hotel Liffey Valley for €2 million. These transactions will result in Dalata owning 252 out of a total of 304 bedrooms in Clayton Hotel Cardiff Lane, and 261 out of a total of 361 bedrooms in Clayton Hotel Liffey Valley.