18th Dec 2024 10:47
(Alliance News) - Dalata Hotel Group PLC on Wednesday said it anticipates a growth in its earnings during 2024, and noted the likely rise in costs for the year ahead.
The Dublin-based operator of the Maldron and Clayton hotel chains said it expects to deliver full-year adjusted earnings before interest, tax, depreciation and amortisation in excess of EUR232 million. This would be around a 5.3% growth year-on-year from EUR220 million.
The group also expects to post revenue per available room for November and December around 3.5% ahead of the year before, with full-year revenue PAR expected to be 1% higher year-on-year.
However, Dalata also expects recent changes to UK national insurance, the increase to minimum wage rates in Ireland and the increased living wage rates in the UK to grow hotel payroll by around 5% in 2025 on a like-for-like basis.
Chief Executive Officer Dermot Crowley said: "We are on track to deliver another strong financial performance, headlined by another year of growth in both our revenue and adjusted Ebitda performance. Our focus on innovation over the last three years continues to deliver enhanced productivity and mitigate the impact of cost inflation on our margins.
"We executed a number of strategic objectives during the year. We opened four new hotels in the UK this summer, we added to our growth pipeline with the acquisition of the Radisson Blu Hotel Dublin Airport and we exchanged an agreement for lease for a Clayton hotel to be developed in the heart of the City of London. Our growth is supported by our investment in our brands, which has enhanced our guests’ experience and driven a stronger market position.
"I look forward to 2025 with optimism. I am very happy with the early trading performance of the four hotels we opened in 2024 and I look forward to Dalata benefitting from their full-year impact next year.
"The addition of the Radisson Blu Hotel at Dublin Airport (subject to CCPC approval) is very exciting and will positively impact on 2025 performance. Our focus is on delivering our exciting 2030 Vision growth strategy to increase our footprint to 21,000 bedrooms."
Shares in Dalata Hotel Group were down 1.4% at 350.00 pence each in London on Wednesday morning.
By Emily Parsons, Alliance News reporter
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