Dalata Hotel Group, which owns the Maldron and Clayton hotel brands, said that the trading environment has improved as it enters what is typically a busier period for hoteliers.
Dalata has a portfolio of 54 hotels with a pipeline of three further hotels due to open in the UK this year - in Liverpool, London and Brighton.
The hotel group also said it had not yet seen any material impact of industrial action at Aer Lingus, but added that any prolonged dispute presents a risk to the wider industry in Ireland.
In a trading update for the first six months of 2024, Dalata said the trading environment had been quieter in the early months of the year, with Group RevPAR (revenue per available room) 4% behind 2023 levels, on the back of supply dynamics in key markets and a lower number of events.
Dalata said that for May and June, all four regions are expected to outperform 2023 with group RevPAR 3% ahead of 2023 levels, while corporate demand remains strong and ahead of last year.
For the six months to the end of June, adjusted EBITDA is expected to be in excess of €105m, surpassing 2023 levels, with RevPAR for the Group 1% below 2023 levels.
The hotel group said that while it remains an on-going challenge, it continues to proactively respond to inflationary pressures, particularly increasing rates of pay.
Dermot Crowley, the company's chief executive, noted that Dublin market demand remains strong, however, the combination of increased supply and the increase in the VAT rate has impacted RevPAR in the first six months of the year.
"I am pleased with our performance to date which reflects the hard work and professionalism of our teams in our hotels and at our central office. Our focus on innovation over the last three years has mitigated the impact of rising costs on our margins," Mr Crowley said.
The CEO said the company is positive in its outlook for the summer period supported by future demand indicators across its markets, including growing air traffic forecasts and active event calendars.
"Within the Irish market, we are not yet seeing any material impact of industrial action at Aer Lingus, though any prolonged dispute presents risk to the wider industry in Ireland," he said.
He also said the company continues to execute its UK growth strategy and will increase its UK footprint by 20% in 2024 equating to 838 new rooms.
"We opened the new Maldron Hotel Manchester Cathedral Quarter in May, and we will welcome our first guests to our Maldron Hotels in Liverpool and Brighton followed by the opening of Maldron Hotel Shoreditch, London over the next two months," the CEO said.
"We remain focused on delivering strategic growth supported by our strong balance sheet, cash generative business and skilled teams. I am excited by the quantity and quality of opportunities we are assessing, as we continue to build on our ambitious growth strategy," he added.
