Business

Dalata’s Irish revenues decline since January but ‘modest’ growth recorded in UK

The hotel company says average revenue per room expected to be 4% behind 2023 for the period of January to April on a like-for-like basis

Hotel group Dalata owns the Maldron hotels chain

Ciara O'Brien
Thu Apr 25 2024 - 07:38

Hotel group Dalata said trade was lower in Ireland as the increased VAT rate and higher competition hit its business. The company, which owns and operates the Maldron and Clayton hotel brands, said average revenue per room was expected to be 4 per cent behind 2023 for the period of January to April on a like-for-like basis.

Dalata said the timing of certain events in 2023 was also creating an unfavourable comparison, such as the visit of US president Joe Biden that boosted demand in April 2023.

However, its UK portfolio is expected to achieve “modest” growth in revenue per average room between January and April, and corporate demand remained “healthy”, Dalata said.

The company is holding its annual general meeting in Dublin on Friday.

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Dalata, which floated on the stock exchange 10 years ago, has 53 hotels across Ireland, the UK and continental Europe, and recorded more than €600 million in revenue last year.

“2023 marked another record performance for the group in terms of revenue and free cash flow generation together with strong execution of our growth strategy. We added a hotel in Amsterdam, two hotels in London and secured a building conversion opportunity in Edinburgh, representing three very commercially-attractive cities in our target markets,” said John Hennessy, chair of Dalata.

“As reported during our full-year results in February there has been lower levels of trade in Ireland. While the Dublin market continues to digest the impact of new supply, trade improved during March compared to January and February.”

However, the company remains optimistic for the remainder of the year, with a combination of seasonal trade and a greater contribution from 10 hotels added to its portfolio since 2022 and the four new hotels opening this year in the UK.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist

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