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Ireland’s largest hotel group, Dalata, described itself as “optimistic” about the remainder of the year following improved revenues for the six months to the end of June, and it is planning to expand its portfolio by €750M.
With a summer surge in travel and strong domestic demand, half-year revenue rose by 29% to €285M compared with €220M for the same time last year, with adjusted earnings before interest, taxes, depreciation and amortization up 24% to €103M from €84M. However, pre-tax profits for the six-month period dipped 3% to €50M.
Revenue for the Dublin portfolio totalled €149M for the six months to June, up 35% on the first half of 2022, with EBITDA of €69M for the six-month period up 27% from €54M the same time last year.
The Dublin portfolio consists of eight Maldron hotels, seven Clayton hotels, The Gibson Hotel, The Samuel Hotel, plus the Clayton Hotel Düsseldorf, with 10 owned and eight operated under lease.
Dalata said that the “continued normalisation” of international trade plus ongoing domestic demand resulted in strong performance across Dublin, with like-for-like occupancy levels in the second quarter at 91%, just above the same time last year.
The average room rate in the second quarter was 11% higher than the second quarter of 2022 on a like-for-like basis, with hotel room supply in Dublin still constrained because of an estimated 10% of rooms allocated for emergency refugee accommodation.
The company said its regional Ireland portfolio — which comprises seven Maldron hotels and six Clayton hotels of which 12 are owned and one is operated under lease — also performed well, generating EBITDA of €16M in the first half of 2023, up 8% on H1 2022.
Revenue increased 23% to €53M, supported by strong domestic demand plus an increase in the number of overseas visitors, particularly from the U.S., with second-quarter occupancy at 88%, representing 105% of Q2 2022 levels.
The average room rate of €137.52 in the second quarter was 10% up on Q2 2022.
Outside Ireland, Dalata has acquired two London hotels this year for a combined €112M, adding 280 rooms to its UK portfolio and expanding its London room portfolio by 64%. Meanwhile, the 157-room Maldron Hotel Shoreditch is due for completion in Q2 2024.
Three leased hotels are also under construction in Liverpool, Brighton and Manchester and are expected to open at the end of 2024.
"Our firepower potential provides scope to grow our property assets by €750M in the medium term beyond our currently announced pipeline," Dalata CEO Dermot Crowley said.
Separately, iNua Hospitality has completed the refinancing of eight hotels across Ireland with a group of lenders, having first appointed CBRE in March of 2023 to seek refinancing partners.
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