Dalata sees revenue rise 40% as Covid restrictions removed
over 3 years in The Irish Times
Revenue at hotel group Dalata grew 40 per cent in 2021, as the pandemic receded and restrictions on the hospitality industry and travel were loosened.
The group said revenue for the year was €192 million, compared with €136.8 million in 2020. That figure was still less than half than the €429.2 recorded in 2019, before the pandemic began.
Hotels reopened at the end of the second quarter of 2021, with trading showing a marked inprivement once restrictions eased.
Dalata narrowed its pretax losses from €111.5 million in 2020 to €11.4 million last year. Losses per share were also significantly lower last year at 2.8 cent, compared to 50.9 in 2020.
Adjusted earnings before interest, tax, depreciations and amortisation was €63.2 million.
Dalata is the biggest hotel operator in the State. It also has operations in the UK and Continental Europe.
Occupancy rates at the hotels were just under 40 per cent for the year, up from 31 per cent a year earlier but still significantly lower than the 82.6 per cent achieved in the year before the pandemic struck. The average room rate wa salso higher year on year, at €100.71 in 2021 compared to €88.77 in 2020.
“As we look forward, it is most definitely a busy and exciting time for Dalata. In the first two months of 2022 we opened two new hotels in Manchester City Centre and we took our first steps into Continental Europe through a new leasehold interest in Hotel Nikko, a 393-bedroom hotel in Dusseldorf which we now operate. On top of this, there are four more hotels opening over the coming four months. Whilst these new hotels provide an exciting backdrop for the year ahead, we remain focused on the recovery of earnings at our existing hotels as restrictions are eased,” chief executive Dermot Crowley said.
“Our current pipeline comprises over 2,000 rooms and our acquisitions and development team continue to look for further opportunities. Regional UK and London remains our primary focus for growth at this time. However, we are also looking at large European cities that fit our model.”
Mr Crowley said the company would continue to remain agile in the face of ongoing uncertainty over the pandemic and the situation in Ukraine. The business was also facing challenges from inflationary pressures and labour shortages, he said.
“I am optimistic and truly confident in our abilities to respond to and grow in this emerging environment. We will continue to empower our people, always our greatest asset, through ongoing development and growth opportunities.” Mr Crowley said.
“ There is a strong calendar of events for 2022, and as flight capacity increases, I expect a strong return of international leisure travel. As more and more companies return to offices I believe this will provide a catalyst for the recovery of international corporate travel.”