REG-Dalata Hotel Group PLC Dalata Hotel Group PLC: Trading Update: Trading ahead of expectations

Dalata HotelAnnouncement

14/12/2022 07:15

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   Dalata Hotel Group PLC (DAL,DHG)
   Dalata Hotel Group PLC: Trading Update: Trading ahead of expectations

   14-Dec-2022 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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                         Trading ahead of expectations

             Revenue to exceed €0.5 billion as expansion continues

                                        

                         ISE: DHG              LSE: DAL

   Dublin and London | 14 December 2022: Dalata Hotel Group plc ("Dalata"  or
   "the Group"),  the  largest  hotel operator  in Ireland,  with  a  growing
   presence in  the United  Kingdom and  continental  Europe, is  pleased  to
   announce that the strong  recovery in trade,  as previously reported,  has
   continued in the second  half of the year.  Annual revenue is expected  to
   exceed €0.5 billion for  the first time in  the Group’s history.  Adjusted
   EBITDAi for the year ending 31 December  2022 is expected to be in  excess
   of €182 million (2019: €162 million).

   ‘Like for  Like’ Group  RevPARii was  21%  ahead of  2019 levels  for  the
   September to  November  2022  period,  with all  of  the  Group’s  regions
   performing well.  Corporate  bookings  have picked  up  after  the  summer
   period; there is continued strong leisure demand and a notable increase in
   North American visitors  supported by  the favourable  USD exchange  rate.
   Supply in Ireland remains constrained due  to rooms in use for  government
   related business, primarily the  provision of emergency accommodation  for
   refugees. The timing and  degree to which these  rooms will return to  the
   market remains uncertain. 

   ‘Like for like’ Group RevPARii ahead of 2019    September to November 2022
   levels:
   Dublin                                                     +18%
   Regional Ireland                                           +30%
   UK                                                         +19%

    

   The Group’s new hotels are performing ahead of our expectations. Occupancy
   for the September to November period was 79% for the seven hotels added to
   the Group between August 2021 and September 2022. Dalata is rebranding the
   Hotel Nikko Düsseldorf  to Clayton  Hotel Düsseldorf in  December and  the
   Group is excited about the opportunities this will provide.

   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 €32 million (versus previous  guidance
   of €34 million).

    

   The Group 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 1 January 2023.

   The Group is  cautiously optimistic  on its outlook  for 2023.  Engagement
   with corporate customers and tour operators on demand and pricing has been
   positive. There are also positive demand indicators in Ireland and the UK,
   including on the resumption of more normalised conference business  levels
   and the continuing return of international travellers, in particular  from
   the US market. We continue to monitor the macro-economic backdrop and  any
   potential for  a  slowdown,  most  notably  in  domestic  leisure  demand.
   However, we are  not seeing  any such indicators  in our  trade levels  to
   date.

   The  Group  also  continues  to  develop  its  pipeline  hotels  with  the
   construction of our Maldron Hotel  in Shoreditch, London progressing  well
   and scheduled for completion  in December 2023. The  Group also has  three
   more UK  Maldron Hotels  under construction  in Brighton,  Liverpool,  and
   Manchester, all scheduled to  open in Q2 2024.  Maldron Hotel Croke  Park,
   Dublin is scheduled for completion in H2 2025.

   Dermot Crowley, CEO, Dalata said:

   “2022 has been a very successful year for Dalata where we demonstrated our
   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.

   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.

   Our people remain  top of our  agenda. It is  through our dedicated  teams
   that we  ensure our  consistently high  service standards.  We are  making
   efforts to alleviate the cost-of-living challenges for our people  through
   meaningful pay increases and  the provision of  one-off vouchers. We  also
   continue to provide  other benefits important  to our employees  including
   quality staff  meals,  enhanced  holiday leave  and  support  through  our
   Employee Assistance Programme,  as well as  maintaining our investment  in
   training and career development.

   We continue our  investment in  sustainability and are  delighted to  have
   received the Gold Award from Green Tourism across all 48 tested hotels  in
   our portfolio  throughout  Ireland  and  the  UK.  This  is  an  important
   milestone in our green journey and is testament to all the efforts of  our
   teams across the Group.

   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. 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.”

                                     -ENDS-

   About Dalata

   Dalata Hotel Group  plc was founded  in August  2007, listed as  a plc  in
   March 2014 and  is now Ireland’s  largest hotel operator,  with a  growing
   presence in  the UK  and continental  Europe. The  Group is  a  vertically
   integrated hotel owner operating two primary hotel brands, Clayton  Hotels
   and Maldron Hotels.  The Group’s portfolio  comprises 50 primarily  4-star
   hotels situated in city-centre locations with over 10,950 rooms across  29
   owned hotels, 18 leased hotels  and three management contracts. The  Group
   has ambitious expansion  plans for the  UK and continental  Europe with  a
   committed pipeline  of 1,125  rooms. For  the first  six months  of  2022,
   Dalata reported revenue of €220.2 million and a profit after tax of  €46.7
   million. Dalata is listed on the Main Market of Euronext Dublin (DHG)  and
   the  London  Stock   Exchange  (DAL).  For   further  information   visit:
    1 www.dalatahotelgroup.com

    

    

    

    

    

   Contacts

   Dalata Hotel Group plc              Tel +353 1 206 9400
   Dermot Crowley, CEO                 investorrelations@dalatahotelgroup.com
   Carol Phelan, CFO
   Niamh Carr, Group Head of Investor Relations and Strategic Forecasting

   Graham White, Investor Relations
    
   Joint Company Brokers                
   Davy: Anthony Farrell               Tel +353 1 679 6363
   Berenberg: Ben Wright               Tel +44 20 3753 3069
                                        
   Investor Relations  and  PR  |  FTI Tel +353 86 401 5250
   Consulting
   Melanie Farrell                     dalata@fticonsulting.com

    

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   i EBITDA  adjusted to  show the  underlying operating  performance of  the
   Group and  excludes  items which  are  not reflective  of  normal  trading
   activities or distort comparability either period on period or with  other
   similar businesses.

   ii RevPAR KPIs are stated  on a ‘like for like’  basis and include a  full
   period performance of all hotels regardless of when acquired. KPIs for the
   Dublin portfolio exclude the  Ballsbridge Hotel, as  the lease matured  at
   the end of  2021 and the  three hotels  added in 2022  (The Samuel  Hotel,
   Maldron Hotel Merrion Road  and Hotel Nikko Dϋsseldorf).  KPIs for the  UK
   portfolio exclude the Clayton Crown Hotel which was sold in June 2022  and
   the five new  hotels added  during 2021  and 2022  (Maldron Hotel  Glasgow
   City, Clayton Hotel Manchester City Centre, Maldron Hotel Manchester  City
   Centre, Clayton Hotel Bristol City and Clayton Hotel Glasgow City).

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   ISIN:          IE00BJMZDW83, IE00BJMZDW83
   Category Code: TST
   TIDM:          DAL,DHG
   LEI Code:      635400L2CWET7ONOBJ04
   Sequence No.:  208379
   EQS News ID:   1512253


    
   End of Announcement EQS News Service

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