Strong UK performance offsets challenges in Ireland for Dalata

18 December 2019 by
Strong UK performance offsets challenges in Ireland for Dalata

Ireland-based Dalata Hotel Group has said challenging conditions in the country have hit revenue as it looks to expand its UK portfolio with plans for a Liverpool opening.

Dalata said the Dublin market has been "more challenging than expected" in the second half of 2019, with revenue per available room (revpar) for the market down 3.2% in the 11 months to the end of November, compared to a decline of 1.4% for the first half of the year.

A VAT increase, increased supply and a reduction in events in October and November also hit business in the Irish capital where the company's hotels saw revpar fall by 3.2%.

Across Ireland revpar for the group's portfolio fell by 0.7% in the 11 months to the end of November 2019. However Dalata's UK hotels outperformed their markets, ensuring the group's earnings before interest, tax, depreciation and amortisation (EBITDA) will be in line with market expectations for 2019.

The group has also announced that it has signed an agreement to lease the Maldron hotel in Liverpool's Park Lane. The hotel will comprise approximately 260 rooms, a restaurant, bar and meeting room facilities. It is expected to open in mid-2022.

Dermot Crowley, deputy chief executive – business development and finance, said: "We look forward with confidence to 2020. We expect to see the continued very positive impact of the seven hotels opened or acquired in the last 18 months. We have a modern, young and well invested portfolio of hotels that are run by highly trained and motivated Dalata teams.

"This puts us in a very strong position versus our competition as we head into 2020. Although supply continues to increase in Dublin, strong economic indicators for Ireland as a whole and an improved calendar of events in the city will help us to continue to grow profitably in the months ahead."

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking