18th Dec 2019 08:42
(Alliance News) - Dalata Hotel Group PLC on Monday reported a "strong performance", and is set to meet earnings expectations despite a number of difficulties in Dublin.
Dalata said despite these headwinds, earnings before interest, tax, depreciation, and amortisation will be in line with market expectations for 2019.
The Irish hotel group said revenue per available room, or RevPar, in Dublin was down 3.2% in 11 months to November in comparison to the 1.4% decline recorded in the first half of the year. Dalata said the Dublin market has proved more difficult than expected since June.
This was as a result of an increase in VAT, the additional supply of hotel rooms, and a reduction in the number of events in October and November.
The UK portfolio performed strongly, Dalata said, exceeding market growth and recording a 3.0% like-for-like increase in RevPar for the 11-month period.
Dermot Crowley, deputy chief executive of business development & finance, commented: "This result is very encouraging for our growth strategy in the UK. Considering the considerable once off impact of the substantial increase in VAT together with increased supply in Dublin, I am happy our Irish hotels have managed to protect their margins and help the group as a whole meet market expectations on Ebitda performance."
Dalata expects a substantial increase in pretax profit in 2019 as a result of hotels opened or extended earlier this year and in 2018.
Dalata also announced it has secured planning permission for a new Maldron hotel in Liverpool with construction expected to commence in the first half of next year and the opening scheduled for mid-2022.
The company plans to add approximately 2,660 additional rooms across the UK and Ireland. The Maldron hotel Merrion Road and the Samuel hotel, both in Dublin, are projected to open in the second quarter of 2021. Construction of the Maldron hotel in Shoreditch is due to commence in the second quarter of 2020 with an estimated opening date of first-quarter 2022.
Shares in Dalata were 2.2% lower on Wednesday in London early on at 483.46 pence each.
By Ife Taiwo; [email protected]
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