DUBLIN and LONDON - Dalata Hotel Group PLC, Ireland's largest hotel operator with an expanding presence in the United Kingdom (TADAWUL:4280) and Continental Europe, has announced a strong trading performance for the second half of 2024. The company expects to achieve an Adjusted EBITDA of over €232 million for the year, marking approximately a 4% increase from the previous year.
The Group's revenue and Adjusted EBITDA have both surpassed 2023 figures, with November and December showing a Group RevPAR (Revenue Per Available Room) approximately 3.5% higher than the last year, driven by solid performances in Dublin and the UK. Overall, the Group RevPAR for the year is anticipated to be 1% above 2023.
Despite facing rising external costs, Dalata's focus on innovation over the past three years has helped improve productivity and offset cost inflation impacts. The Group is also set to benefit from a €2 million reduction in contracted energy pricing and the rollout of further efficiency initiatives. These measures, along with RevPAR growth, are expected to cover the increased hotel payroll costs resulting from changes in UK National Insurance, and increased minimum and living wage rates in Ireland and the UK.
Dalata CEO Dermot Crowley expressed satisfaction with the company's response to cost pressures and its strategic achievements, including the opening of four new hotels in the UK, the acquisition of Radisson Blu Hotel Dublin Airport, and the agreement for a Clayton hotel in London. The Group has also completed refinancing, securing a €600 million debt package.
Looking ahead, Crowley anticipates passenger growth at Dublin Airport, which is crucial for the Irish hospitality and tourism sectors. The removal of the summer cap in 2025 and projected growth in passenger numbers, particularly from North America, is expected to positively impact the hotel industry in Ireland.
Information in this article is based on a press release statement from Dalata Hotel Group PLC.
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