6th Mar 2025 10:27
(Alliance News) - Dalata Hotel Group PLC on Thursday proposed a higher final dividend as it started a formal sales process aimed at optimising capital opportunities and enhancing value for shareholders.
The Dublin-based operator of the Maldron and Clayton hotel chains said it believed it is in a "highly attractive investment proposition," citing its hotel platform and a "well-invested portfolio of hotel properties in central locations," among others.
The company started a formal sales process and announced a strategic review. Dalata shares jumped 15% to 460.00 pence each on Thursday morning in London.
Dalata Chair John Hennessy said: "The board is excited about the 2030 Vision that was outlined by our senior management team at our capital markets day in October 2024. However, we are unanimous in the view that the key to achieving that vision is the availability of capital; and that the share price does not reflect the underlying value of the company. We believe that now is the right time to undertake a rigorous and formal strategic review, which will consider options to increase access to capital and also enhance shareholder value."
Further, the company posted its 2024 results, with revenue up 7.3% at EUR652.2 million in 2024 from EUR607.7 million in 2023. Revenue per available room rose 1.0% to EUR115.78 in 2024 from EUR114.66 in 2023.
Pretax profit however declined 14% to EUR91.2 million from EUR105.5 million, amid higher costs.
Cost of sales increased 14% to EUR238.8 million from EUR214.5 million, while administrative expenses were 7.5% higher, at EUR256.3 million from EUR238.5 million.
Net finance costs increased 33% to EUR67.2 million from EUR50.6 million.
Dalata proposed a final dividend of 8.4 euro cents per share for 2024, up 5.0% from 8.0c a year ago.
Chief Executive Officer Dermot Crowley said: "Since 2021, Dalata has undergone a remarkable transformation. We have grown our portfolio by circa 35% through additions and new openings to almost 12,000 rooms, doubled our UK business, and successfully ventured into Continental Europe. Our brands and marketing processes have been revolutionised, and sustainability is now deeply embedded in our operations. Both our people and customers report higher satisfaction than ever before."
He added: "I am confident about Dalata's prospects. We are a modern, international, outward looking, and innovative hotel company. We have a clear strategy, underpinned by our 2030 Vision, and a team of exceptional people with an unwavering focus on delivering on our ambitious growth targets."
By Tom Budszus, Alliance News slot editor
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