Shares in Dalata Hotel Group, which owns the Clayton Hotel and Maldron Hotel brands, jumped over 7% in Dublin trade today after it said that trading remained robust during 2024.
In a trading update, the hotel group said that along with the positive impact of recent hotel additions in 2023 and 2024, it now expects to deliver adjusted EBITDA of over €232m for the year, which would mark 4% growth year-on-year.
Dalata is the country's biggest hotel group and its portfolio includes a mix of owned and leased hotels with 56 mainly four-star hotels with 12,150 rooms and a pipeline of over 870 rooms.
In today's trading statement, it said that group Revenue per Available Room (RevPAR) is expected to be about 3.5% ahead of last year for November and December with strong performances in Dublin and the UK.
For the full year, Group RevPAR is expected to be 1% ahead of 2023.
The hotel group estimates that the recently announced changes in UK National Insurance, the increased minimum wage rates in Ireland and the increased living wage rates in the UK will increase hotel payroll by about 5% next year.
It said it continues to respond proactively to cost pressures and is confident it will cover these additional costs in 2025 with the benefit of a €2m reduction in contracted energy pricing, the ongoing roll out of further efficiency and innovation initiatives and through RevPAR growth in its markets.
The group said it will also benefit from the full year impact of hotels opened this year and the addition of Radisson Blu Hotel Dublin Airport - subject to Competition and Consumer Protection Commission approval.
Dalata opened four new hotels in the UK this summer, added to its growth pipeline with the purchase of the Radisson Blu Hotel Dublin Airport and exchanged an agreement for lease for a Clayton hotel to be developed in the heart of the City of London.
Dermot Crowley, Dalata's chief executive, said the hotel group was on track to deliver another strong financial performance, headlined by another year of growth in both its revenue and Adjusted EBITDA performance.
Mr Crowley said the company also completed the refinancing of its debt facilities during the year, securing a €600m debt package including its inaugural private placement.
"This positions us strongly to capitalise on any opportunities that will deliver accretive value to the business and further strengthen our financial performance. We will continue to balance disciplined growth, capital efficiency and financial strength with returns to shareholders reflected by our dividend payments and two share buy-back programmes," he added.
Mr Crowley said the ability of Dublin Airport to continue to increase passenger numbers is crucial to support further growth across the Irish economy, particularly in the hospitality and tourism sectors which are key sources of employment for the island of Ireland.
"I am pleased that the cap will not apply in the summer of 2025, and we are hopeful that it will be removed fully in time. It is expected that passenger numbers at Dublin Airport will grow by 4% in 2025, with increased access from North America, which will be very positive for hotels across the whole of Ireland," he said.
He said the addition of the Radisson Blu Hotel at Dublin Airport (subject to CCPC approval) is very exciting and will positively impact the company's 2025 performance.
Shares in the company ended higher in Dublin trade today.
