10th Mar 2015 11:45
LONDON (Alliance News) - Dalata Hotel Group PLC posted a big rise in pretax profit for 2014 on Tuesday, pushed higher by lower finance costs as a rise in revenue was mostly offset by an increase in administration expenses.
The Irish hotel operator said its pretax profit for the year was EUR4.2 million, up from EUR73,000 in 2013 when the company's results were pushed lower by finance costs of EUR4.9 million. Finance costs in 2014 were only EUR1.2 million.
Revenue increased to EUR79.1 million in the year, up from EUR60.6 million, with its occupancy rate increasing to 75.3% from 73.8%, its average room rate up to EUR76.4 from EUR68.3, and its revenue per available room rising to EUR57.5 from EUR50.4.
The 30% rise in revenue was offset somewhat by one-off fees and stamp duty costs related to acquisitions Dalata made over the course of the year. Excluding the impact of acquisitions, earnings before interest, taxation, depreciation and amortisation rose by 54%, compared to a 14% rise when the costs are included.
"The business has performed very strongly in 2014. All our hotels showed revenue growth which was converted solidly to the bottom line. We have benefited from the continued strong growth of the Dublin market and the start of recovery in the cities and towns outside of Dublin," said Chief Executive Pat McCann.
"The outlook is encouraging for the markets we operate within. However, recovery in provincial Ireland is still fragile and I welcome the continued support of the Government for the tourist industry. This support has contributed to increased visitor numbers and the creation of 30,000 new jobs," McCann added.
In a separate statement on Tuesday, Dalata said it has reached an agreement to acquire the Holiday Inn in Belfast for EUR25.6 million in cash. The hotel is Dalata's first owned site in Belfast, where it operates the Maldron Hotel Belfast.
Shares in Dalata were trading up 2.0% in London at 250.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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