Dalata Reports Strong Finish To 2016
Trading in the final four months of the year for Dalata Hotel Group has marginally exceeded its expectations, with STR results to the end of November 2016 showing that RevPAR for the Dublin market has...
Trading in the final four months of the year for Dalata Hotel Group has marginally exceeded its expectations, with STR results to the end of November 2016 showing that RevPAR for the Dublin market has increased by 16.6 per cent for the 11 months to the end of November versus 2015, according to its year-end report.
Although, as anticipated the growth in the Dublin market was lower in the second half of the year but still described as being 'very healthy'. RevPAR for the group's Dublin hotels was up 20.8 per cent for the same 11 month period, with Dalata stating that there was no impact from Brexit on any of its hotels in Ireland or the UK.
The final four months of the year has seen The Clayton hotel brand in Ireland increase in size from 1,588 rooms to 2,904 rooms as well as the rebranding to Clayton of the three former Clarion hotels and the former Doubletree by Hilton hotel in November and December 2016. Currently there are 17 Clayton hotels in Ireland and the UK with 4,369 rooms, with The Clayton Hotel Burlington Road expected to trade in 2017.
Dalata's report stated that it will add over 950 rooms to its owned and leased portfolio; the construction of the Maldron Hotel in Belfast is due for completion in the second quarter of 2018; the Clayton Hotel Charlemont to be completed in the middle of 2018; construction of Maldron Hotel Kevin Street will start in January 2017 and to open in the second quarter of 2018; and the group has received planning permission for the 140-room extension at the Clayton Hotel Dublin Airport which will be completed in the third quarter of 2018.
The hotel group has also completed a planning application for the new Maldron Hotel South Mall in Cork which is expected to open in the third quarter of 2018, with the extensions at Maldron Hotel Sandy Road, Maldron Hotel Parnell Square and the Clayton Hotel Ballsbridge all progressing well and due to be completed on time.
Construction is underway at the new 226 room Maldron Hotel Newcastle, which is due to open in the summer of 2018, and EBITDA for the year ending 31 December 2016 will be at the upper end of its analysts' expectations, stated the report.