25th Feb 2020 10:35
(Alliance News) - Dalata Hotel Group PLC on Tuesday said its performance improved in 2019 as it added more rooms to its portfolio and increased rates.
The stock was 3.5% higher in morning trade in London at 407.20 pence a share.
The Dublin-based hotel operator said pretax profit in 2019 grew by 2.7% to EUR89.7 million from EUR87.3 million, as revenue increased by 9.3% to EUR429.2 million from EUR392.6 million. Revenue growth was driven by new additions to the portfolio.
Administrative expenses, meanwhile, were reduced to EUR155.5 million from EUR157.5 million year-on-year. Cost control ensured Dalata maintained earnings despite tougher market conditions in Ireland, it said.
Dalata said its occupancy levels slipped slightly during the year to 82.6% from 83.7% the year prior, while average room rate improved to EUR113.14 from EUR112.51. Some 367 new rooms were added to portfolio in London and Cambridge in 2019. Another 941 rooms added to the pipeline in Dublin, Liverpool and Birmingham.
As a result, revenue per available room slipped to EUR93.43 from EUR94.13 year-on-year.
The company declared 10.75 euro cents per share dividend for 2019, up 7.5% on the prior year.
Looking ahead, Dalata said trading in the first quarter of 2020 is in line with expectations and it is "very encouraged" by the quality of new opportunities that it is pursuing in the UK.
"We will continue to grow our portfolio, develop our people, exceed our customers' expectations and maximise the return from our assets. We are very focused and ready for the challenges and opportunities that 2020 presents," said Chief Executive Pat McCann.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Dalata Hotel Gp