Dalata Hotel Group, the country's biggest hotel group, has reported higher revenues for the six months to the end of June, but said its profit after tax fell as trading was softer than had been expected of late.
The company also announced today a €30m share buyback.
Dalata, which owns the Clayton Hotel and Maldron Hotel brands, said its half year revenue rose by 6% to €302.3m from €284.8m the same time last year, while its profit after tax fell by 15% to €35.8m from €42m.
The company said its revenue per available room - a key performance measure - was down 1% to €108.57, while its occupancy rate eased to 77.6% from 78.4% the same time last year.
The Board has declared an interim dividend of 4.1 cents per share, which is up 2.5% on the 2023 interim dividend of 4 cents per share.
The hotel group said its UK footprint now exceeds 5,000 rooms, an increase of 20% since the end of last year with four new UK Maldron hotels opening during the summer - in Manchester, Liverpool, Brighton and Shoreditch in London.
Dalata said that trade was lower than expected in the first half of the year, especially in Regional Ireland and the UK as a result of more measured consumer spending.
It said its RevPAR for its Dublin portfolio was in line with 2023 levels in the key months of July and August, while RevPAR for the Regional Ireland portfolio was also in line with 2023 levels.
Meanwhile, its UK portfolio achieved like for like RevPAR growth of 3% including the ongoing positive momentum from hotels opened in 2022.
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Dalata said that demand from corporate and international visitors remains strong but it was seeing a softening from more cost conscious domestic customers relative to last year.
"We continue to see periods of good leisure demand around events. As we look ahead to the balance of the year, we expect these recent trends to continue," the company said.
It added that the events calendar for the remainder of 2024 looks strong particularly in Dublin.
Dermot Crowley, Dalata Hotel Group CEO, said he continues to view Dublin as a great city in which to operate hotels.
"Despite the digestion of approximately 2,500 (9%) additional rooms in the city since January 2023 and the 4.5% VAT rate increase introduced on September 1 2023, RevPAR for the period January to July is only down 5.4% versus last year for the market," he noted.
He said Dalata outperformed the market with RevPAR for its Dublin portfolio down 4.6% for the same period.
"On the back of a strong events calendar, RevPAR for our Dublin hotels in August was 5% higher than last year. RevPAR for the period January to August was therefore 3% lower than last year," he said.
"The outlook for the Dublin economy is very encouraging, supported by rising population numbers, a significant growth in employment and strong international visitor numbers," he added.
Dermot Crowley said the passenger cap at Dublin Airport is an important issue for its business, and he remains hopeful that it will be resolved in the short term.
"The ability of Dublin Airport to continue to increase passenger numbers is critical to support further growth in the Irish economy, particularly in the hospitality and tourism sectors which are a key source of employment for the island of Ireland," he added.
"I remain very confident on Dalata's future growth prospects as we continue to deliver on our stated growth strategy, becoming a key four-star market player in targeted locations," the CEO said.
"While the quantum and timing of hotel investments vary from year to year, I am excited by the opportunities we are currently considering. Our ambition is to announce over 6,500 additional rooms over the medium-term across all of our markets as we look to continue to grow in Regional UK, expand our presence in London and the large European cities and maintain our market share in Ireland," he said.
"Dalata's strong financial position and our experienced team ensures we are well positioned to continue to deliver sustainable growth and returns for our shareholders," he added.
The hotel group today also said that it had appointed its Corporate Development Director Shane Casserly as Deputy Chief Executive with immediate effect, while its Chief Operating Officer Des McCann will be appointed to the Board with effect from January 2025.
Mr Casserly joined Dalata in March 2014 as Head of Strategy and Development and was appointed to the Board as Corporate Development Director in January 2020.
Mr McCann joined the hotel group in 2011, and held General Manager positions at several hotels before he was appointed Group General Manager of Clayton Hotels in Ireland in November 2018. In January 2022, he was appointed Chief Operating Officer.
Shares in the company moved lower in Dublin trade today.
