31st Aug 2022 09:51
(Alliance News) - Dalata Hotel Group PLC on Wednesday reported a return to profit as more people stayed at its hotels following the lifting of Covid restrictions.
In the six months to June 30, the hotel chain swung to a pretax profit of EUR52.0 million from a loss of EUR37.8 million in the first half of Covid-battered 2021. Revenue jumped more than fivefold to EUR220.2 million from EUR39.6 million.
The Dublin-based company emphasised beating pre-pandemic 2019 figures. Pretax profit was up 38% and revenue up 9.1% versus the first half of 2019, when Dalata reported a profit of EUR37.8 million and revenue of EUR201.9 million.
"Bookings are driven by continued strong leisure demand and an active events calendar. As is normal for this time of year, corporate travel decreases during the summer months but we expect this to increase from September. We are cautiously optimistic on trade for the remainder of the year," the company operating in the UK and Ireland explained.
While Dalata noted rising inflation and energy prices, it said it is applying "dynamic pricing strategies" to counter the effects of this. It expects gas and electricity costs to increase by 62% to EUR21 million in the second half of 2022 from EUR13 million in the first half.
Trading continues to be strong, the company said, but it added that supply in Ireland is reduced as its rooms are being used "for government-related business" including as emergency accommodation for refugees from Ukraine.
Dalata expects to open 1,125 new rooms between 2023 and 2025 and is actively looking for new opportunities across all regions, highlighting continental Europe. It is currently building new hotels in Brighton, Liverpool, London and Manchester.
Dalata declared no interim dividend. It paid no dividend at all in 2021.
Dalata shares were 1.0% higher at 298.55 pence each in London on Wednesday morning.
By Tom Budszus; [email protected]
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