6th Sep 2016 07:13
LONDON (Alliance News) - Dalata Hotel Group PLC on Tuesday reported growth in profit in the first half of 2016 and said prospects in Ireland remain strong, although it said the impact of the UK's decision to leave the European Union is not yet clear.
The Ireland-based hotel operator said pretax profit in the first six months of the year multiplied to EUR18.2 million, from EUR2.7 million in the first half of 2015, as revenue rose to EUR130.1 million from EUR97.7 million.
Dalata said revenue was boosted by a slight increase in occupancy to 79% from 78.8%, while a rise in average room rate to EUR94.78 from EUR85.48 helped revenue per available room to grow to EUR74.90 from EUR67.34.
Dalata said the second half of 2016 continues to be "a very busy and exciting time" for the company, adding that it has acquired the freehold interests of the Maldron Hotel Cork for EUR8.1 million and the three buildings adjacent to Maldron Hotel Parnell Square for EUR5.0 million. It plans to extend the hotel using the three buildings.
Dalata added that while the "impact of Brexit on the UK hotel market is not yet clear", prospects for the hotel market in Ireland remain "very strong".
"The second half of 2016 will continue at the energetic pace of the first half of the year. We will continue to work on our four hotel development projects as well as progressing plans to build extensions to our Clayton Dublin Airport, Clayton Ballsbridge and Maldron Sandy Road, Galway hotels. We will also rebrand three of our acquired hotels to Clayton in November. Trade in our Irish hotels has been very strong in July and August while it has been in line with our expectations in our UK properties," Chief Executive Pat McCann said in a statement.
Shares in Dalata were up 1.2% at EUR4.35 on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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