27th Aug 2025 09:52
(Alliance News) - Dalata Hotel Group PLC shares fell on Wednesday as it said profit decreased in the first half of the year against a "challenging" backdrop in the UK.
The Dublin-based operator of the Maldron and Clayton hotel chains said revenue increased 1.4% to EUR306.5 million in the six months to the end of June from EUR302.3 million a year prior.
Pretax profit, however, decreased 44% to EUR23.3 million from EUR41.9 million, as revenue per available room fell 1.9% to EUR108.61 from EUR110.77.
Shares in Dalata were down 5.0% at 525.00 pence in London on Wednesday morning.
The results follow Dalata's board unanimously recommending a cash takeover offer of EUR6.45 per share in July from an acquisition vehicle owned by Pandox AB and Eiendomsspar AS. The offer converts to about 556p per share currently.
Pandox is a Stockholm-based hotel developer and Eiendomsspar an Oslo-based real estate firm. They have partnered to form Pandox Ireland Tuck Ltd, which described itself as "well-positioned to support Dalata's business and long-term growth ambitions".
The EUR1.39 billion offer was 35% higher than Dalata's closing price on March 5, the day before the Irish firm began a strategic review and sale process. The bid also improved upon an approach from the consortium back in June, when it offered EUR6.05 per share, or EUR1.3 billion in total.
"Having met with Pandox and Scandic on a number of occasions, I am confident that the acquisition will also be a very positive outcome for the people working within Dalata. I look forward to working in close partnership with our new owners to enable Dalata and its people to continue to grow and prosper within a larger international hotel company," said Chief Executive Officer Demot Crowley.
Going forward, Dalata said it anticipates like-for-like RevPAR for July and August to be around 2.5% lower on-year.
The firm said demand levels are supported by "strong levels" of flight volumes and an event schedule to drive interest particularly in Dublin.
It noted that the second half of the year will also benefit from the acquisition of the Radisson Blue Hotel Dublin Airport and the full-year impact of the four UK openings in mid-2024.
CEO Crowley said: "Despite the potential for distraction by the strategic review, our team remained focused and delivered a very strong operational performance as well as continuing to grow our development pipeline. Notwithstanding the external commentary of a challenging year for tourism in Ireland, on a like-for-like basis, our RevPAR in Dublin and Regional Ireland is at the same level as the same period last year.
"However, continued increases in costs and especially pay rates puts downward pressure on our margins. The UK market has been more challenging, and this has impacted on our RevPAR performance with a 3.5% reduction versus last year. Our focus on innovation and looking for smarter ways to do things has helped to protect our margins across all geographies."
Crowley said if shareholders approve the recommended offer on September 11, this is likely to be the firm's last results announcement as a PLC.
"While in some ways that is a sad occasion, I am happy that the board is recommending a strategy that is in the best interests of shareholders," Crowley concluded.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Dalata Hotel Gp