9th Sep 2014 08:37
LONDON (Alliance News) - Dalata Hotel Group PLC Tuesday said it swung to profit in the first half, as revenue rose in the period, and said it had completed another acquisition to add to the two already made after the period end in the wake of its IPO in March.
The Irish hotel operator said its pretax profit for the six months to June 30 was EUR943,000, against the EUR1.7 million loss posted a year earlier. That came on the back of a jump in revenue in the period, up 31% to EUR35.0 million from EUR26.8 million a year earlier, outstripping the rise in the cost of sales in the period to EUR13.6 million from EUR9.9 million.
Earnings before income, tax, depreciation and amortisation more than doubled in the half-year, up to EUR2.4 million from EUR0.9 million. The group said it expects full-year EBITDA to be between EUR7.5 million and EUR8 million, excluding the impact of acquisition activity. EBITDA in 2013 was EUR5.3 million.
Revenue per available room in the company's Irish hotels rose 11% in the half, with occupancy slightly lower, down 0.5%, due to refurbishment work at two hotels, while average daily room rates increased 12%.
The group said revenues were boosted by the addition of the Maldron Hotels at Dublin Airport and in Tallaght, along with growth in its existing business.
The group raised EUR256 million via its initial public offering in March and has been on an acquisition spree in recent months. In June, the group bought the Maldron and Pearse hotels in Dublin for a total of EUR29.7 million and in August it said it has entered into an agreement to buy a 25% stake in both Qulpic Ltd and Zrko Ltd for EUR21.8 million.
Those were followed up Tuesday with the announcement it will buy the Tower Hotel in Derry, Londonderry in Northern Ireland for EUR5.5 million. The company had earlier Tuesday announced a lower acquisition price, but subsequently corrected the figure.
The group said there had been a continued recovery in the Irish hotel sector in the first half of the year, traditionally the weaker part of the year for revenue and profitability. It said figures from the Central Statistics Office in Ireland showed a 9.9% rise in total trips to the country in the first half and said the performance for the sector had been boosted by robust event activity in Dublin and by an improvement in domestic consumer sentiment.
"The outlook is encouraging and we are confident for the remainder of 2014 with strong momentum maintained. The sustained commitment of government to the development and support of the tourist industry through a combination of investment, promotional and fiscal measures has revived confidence in the hotel sector," said Pat McCann, chief executive of Dalata.
Dalata shares were up 1% to 3.1198 Euro cents on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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