Dalata Hotel Group said its annual revenue is expected to exceed €0.5 billion for the first time in the company's history.
In a trading update, the operator of the Clayton and Maldron hotels said the strong recovery in trade, as previously reported, has continued in the second half of the year.
It said its adjusted EBITDA for the year ending December 2022 is expected to be in excess of €182m, up from €162m in 2021.
Dalata said its like for like group Revenue per available room (RevPAR) was 21% ahead of 2019 levels for the September to November 2022 period, with all of the group's regions performing well.
It noted that corporate bookings have picked up after the summer period, while there is continued strong leisure demand and a notable increase in North American visitors supported by the favourable dollar exchange rate.
But it added that supply in Ireland remains constrained due to rooms in use for government related business, mainly the provision of emergency accommodation for refugees.
The timing and degree to which these rooms will return to the market remains uncertain, it added.
Dalata said its new hotels are performing ahead of expectations.
Occupancy for the September to November period was 79% for the seven hotels added to the group between August 2021 and September 2022.
The hotel group said it continues to develop its pipeline hotels with the construction of the Maldron Hotel in Shoreditch, London progressing well and scheduled for completion in December 2023.
It also has three more UK Maldron Hotels under construction in Brighton, Liverpool, and Manchester, all scheduled to open in the second quarter of 2024.
Maldron Hotel Croke Park, Dublin is scheduled for completion in the second half of 2025.
The company also said today that the business energy supports in Ireland and the UK are welcomed.
"Due to the impact of these and other factors, we now expect gas and electricity costs for 2022 to be approximately €32m (versus previous guidance of €34m)", it added.
Dalata said it is cognisant of the cost-of-living challenges and has announced pay increases of 6.5% for employees earning below €13/£13 per hour and 4% for those earning above this level, effective from January 2023.
Dermot Crowley, the Dalata CEO, said that 2022 has been a very successful year for the company as it showed its ability to bounce back from the challenges of Covid-19.
"I am very pleased with how we managed the recovery in trade of our existing hotels, opened six new hotels and added our first hotel in continental Europe. We are proud to have recently opened our 50th hotel with the completion of Clayton Hotel Glasgow City," Mr Crowley said.
"We remain mindful of global inflationary cost pressures and the potential impact on consumer discretionary spending. We will continue to focus our efforts on protecting and growing the business sustainably as we have always done," the CEO said.
"Despite macroeconomic uncertainties, we remain confident in our ability to outperform with our well-invested product, ESG focus, decentralised operating model and track record of providing an excellent guest experience," Mr Crowley said.
"As we look ahead, Dalata's robust balance sheet, financial resources, pipeline of talented people and excellent reputation position us strongly for further growth. The future is bright for Dalata and I am excited about the group's opportunities and prospects," he added.
Shares in the company moved higher in Dublin trade today.