Dalata, one of Ireland’s largest hotel operators, has seen a rebound in business in May and June after a “challenging start” to 2024, but revenue for the first six months of the year is still expected to be marginally lower than the same period in 2023.
In a trading update issued on Thursday morning, the Maldron and Clayton owner noted an improvement in trading conditions in the last two months, with all four regions expected to outperform.
The group also anticipates its revenue per available room (RevPAR) in May and June to be 3% ahead of 2023 levels.
In a trading statement from earlier this year, Dalata said it had a quieter start to 2024, with RevPAR 4% behind last year’s levels.
The group also said that while it remains an ongoing challenge, it continues to proactively respond to inflationary pressures, particularly increasing rates of pay.
In total, the firm is anticipating RevPAR to be 1% below what it was in 2023. The group is also forecasting earnings before interest, tax, debt and amortisation (EBITDA) of €105m, surpassing 2023 levels.
“In Dublin specifically, demand remains strong, however, the combination of increased supply and the increase in the VAT rate has impacted RevPAR in the first six months of the year,” said chief executive of Dalata, Dermot Crowley.
The CEO added that Dalata was not seeing “any material impact” from the industrial action at Aer Lingus, but he warned that “prolonged dispute presents a risk to the wider industry in Ireland.”
“We remain focused on delivering strategic growth supported by our strong balance sheet, cash generative business and skilled teams. I am excited by the quantity and quality of opportunities we are assessing, as we continue to build on our ambitious growth strategy.”
The group aims to increase its footprint in the UK by 20% in 2024, equating to 838 new rooms.
Just last month, Dalata opened its newest hotel in Manchester, with the group set to welcome guests to its Maldron Hotels in Liverpool and Brighton, followed by the opening of the Maldron Hotel Shoreditch in London over the next two months.