The company, Ireland’s biggest hotel operator, is in the process of being sold in a €1.4bn deal to Scandinavian firms Pandox and Eiendomsspa. Dalata shareholders will vote on the sale on September 11.
Dalata operates its hotels under the Madron and Clayton brands.
Today’s News in 90 Seconds, Wednesday, August 27
“Notwithstanding the external commentary of a challenging year for tourism in Ireland, on a like for-like-basis, our RevPAR (revenue per available room) in Dublin and regional Ireland is at the same level as the same period last year,” according to Dalata chief executive Dermot Crowley.
“However, continued increases in costs and especially pay rates puts downward pressure on our margins,” he added. “The UK market has been more challenging, and this has impacted on our RevPAR performance, with a 3.5pc 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.”
Revenue at the group in the first half of the year edged 1pc higher to €306.5m. Its adjusted earnings before interest, tax, depreciation and amortisation declined 5pc to €102.5m. Profit after tax tumbled 45pc to €19.6m, the company noted in results published on Wednesday. It blamed the sharp fall in after-tax profits on the cost of its strategic review that led to the agreed sale of the business, as well as an increase in non-cash accounting charges.
During the first half of the year, Dalata announced that it will open its first hotels in Madrid and Berlin. It also completed the purchase of the Radisson Blu hotel at Dublin Airport, which will be rebranded as a Clayton hotel next year.
Mr Crowley said that for the first time in Dalata’s history, the company has more rooms outside Ireland than within it.
He said that while the impending sale of the business is in some ways “sad” for the group, he insisted it’s in the best interests of shareholders.
“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,” he said. “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.”
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