Business

Dalata looks ahead after slower start to 2024

Increased supply, rise in VAT rate hits room revenue

Dalata chief executive Dermot Crowley. Photograph: Barry Cronin

Ciara O'Brien
Thu Jun 27 2024 - 08:28

Hotel group Dalata said room revenue fell in the early months of the year, as increased supply and a rise in the VAT rate impacted the business.

But things looked brighter for May and June, the group said, and corporate demand remained strong.

In a trading update, Ireland’s biggest hotel operator said revenue per available room (revpar) was down 4 per cent in the first four months of 2024, driven by a lower number of events. But fortunes changed in May and June, with the company’s markets expecting to outperform 2023 and revenue 3 per cent ahead.

Adjusted earnings before interest, depreciation, tax, depreciation and amortisation are also expected to come in ahead of last year’s levels, at more than €105 million, although revpar is expected to fall 1 per cent.

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Dalata shares rose 2.4 per cent in early trading.

While the market in Dublin remained strong, Dalata is also continuing to grow in the UK, adding more than 800 new rooms this year and increasing its footprint by 20 per cent. The company has already opened the Maldron Hotel Manchester Cathedral Quarter, with more planned for Liverpool, Brighton and London.

“As we look ahead, we are positive in our outlook for the summer period supported by future demand indicators across our markets, including growing air traffic forecasts and active event calendars,” said Dermot Crowley, Dalata chief executive.

“Within the Irish market, we are not yet seeing any material impact of industrial action at Aer Lingus, though any prolonged dispute presents risk to the wider industry in Ireland.”

Ciara O'Brien

Ciara O'Brien

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

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