Ireland-based Dalata Hotel Group has said challenging conditions in the country have hit revenue as it looks to expand its UK portfolio with plans for a Liverpool opening.
Dalata said the Dublin market has been “more challenging than expected” in the second half of 2019, with revenue per available room (revpar) for the market down 3.2% in the 11 months to the end of November, compared to a decline of 1.4% for the first half of the year.
A VAT increase, increased supply and a reduction in events in October and November also hit business in the Irish capital where the company’s hotels saw revpar fall by 3.2%.
Across Ireland revpar for the group’s portfolio fell by 0.7% in the 11 months to the end of November 2019. However Dalata’s UK hotels outperformed their markets, ensuring the group’s earnings before interest, tax, depreciation and amortisation (EBITDA) will be in line with market expectations for 2019.
The group has also announced that it has signed an agreement to lease the Maldron hotel in Liverpool’s Park Lane. The hotel will comprise approximately 260 rooms, a restaurant, bar and meeting room facilities. It is expected to open in mid-2022.
Dermot Crowley, deputy chief executive – business development and finance, said: “We look forward with confidence to 2020. We expect to see the continued very positive impact of the seven hotels opened or acquired in the last 18 months. We have a modern, young and well invested portfolio of hotels that are run by highly trained and motivated Dalata teams.
“This puts us in a very strong position versus our competition as we head into 2020. Although supply continues to increase in Dublin, strong economic indicators for Ireland as a whole and an improved calendar of events in the city will help us to continue to grow profitably in the months ahead.”