Dalata sees revenue rise 40% as Covid restrictions are removed

Dalata hotel group expects to expand further in the hotel market in continental Europe over the next year after recently opening its first property outside Ireland and the UK, the 393-bedroom Hotel Nikko in Dusseldorf, Germany.

Speaking after the group announced strong annual results on Tuesday, Dermot Crowley, Dalata's chief executive, said he was "very confident" that the hotel, leased from German property group Art-Invest, would lead to further deals.

Mr Crowley said the focus of Dalata’s growth strategy remained in the UK but it was also looking at the possibility of new openings in markets including Germany, the Netherlands, Italy and Spain.

“It is unlikely that we will open anything else in Europe in the first half of the year, but I’d be hopeful that we’d do another one in the next 12 months,” he said.

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Dalata, which owns the Maldron and Clayton brands, reported growth in its revenues of 40 per cent for 2021 to €192 million as the pandemic receded and restrictions on the hospitality industry and travel were loosened.

Its annual revenue was still less than half the €429.2 million recorded in 2019, before the pandemic began.

The group said trading showed a marked improvement once restrictions eased. Dalata narrowed its pretax losses from €111.5 million in 2020 to €11.4 million last year. Adjusted earnings before interest, tax, depreciations and amortisation were €63.2 million.

Dalata is the biggest hotel operator in the State, with about 50 hotels here and in the UK.

Occupancy rates at the hotels were just under 40 per cent for the year, up from 31 per cent a year earlier but still significantly lower than the 82.6 per cent achieved in the year before the pandemic struck. The average room rate was also higher year-on-year at €100.71 in 2021 compared to €88.77 in 2020.

“In the first two months of 2022 we [also] opened two new hotels in Manchester city centre,” said Mr Crowley.“On top of this there are four more hotels opening over the coming four months. Whilst these new hotels provide an exciting backdrop for the year ahead, we remain focused on the recovery of earnings at our existing hotels as restrictions are eased,” said Mr Crowley said.

“Our current pipeline comprises over 2,000 rooms and our acquisitions and development team continue to look for further opportunities.”

He said the company would continue to remain agile in the face of ongoing uncertainty over the pandemic and the situation in Ukraine. The business was also facing challenges from inflationary pressures and labour shortages.

“ There is a strong calendar of events for 2022, and as flight capacity increases I expect a strong return of international leisure travel. As more and more companies return to offices I believe this will provide a catalyst for the recovery of international corporate travel,” said Mr Crowley.