Dalata reports strong 2017 results with €77.3m profit before tax
Dalata Hotel Group has reported a strong 2017 performance including €77.3m (£68.3m) in pre-tax profit, an increase of 75.3%.
The Irish hotel group has released its financial results for the year ending 31 December 2017, which also showed revenue of €348.5m (£308m), a 19.9% increase on 2016, and adjusted EBITDA of €104.9m (£93m), up 23.3%.
The group's occupancy was 83.1%, up from 82.1%, with average room rate up from €97.60 (£86.25) to €106.48 (£94.08) and revenue per available room (revpar) up from €80.20 (£70.86) to €88.51 (£78.21).
The group has a total pipeline of 2,200 rooms and is hoping to open 1,200 rooms during 2018. The Maldron Hotel Belfast City opens on 13 March and the Maldron Hotel Newcastle is scheduled to open in early 2019, with further hotels planned for Glasgow and Manchester, two of 20 cities the group is targeting as part of its UK expansion plans.
Dalata Hotel Group operates 38 hotels in the UK and Ireland across its Clayton and Maldron brands, of which 26 are owned by Dalata, nine are operated under lease agreements and three are operated under management agreements.
The group's UK hotel portfolio comprises two hotels in London, four hotels elsewhere in the UK and two hotels in Northern Ireland. Its UK portfolio achieved revpar growth of 9.6% on 2016, hitting £66.64.
UK earnings before interest, tax, depreciation and amortisation (EBITDA) was £20.9m, up from £18.6m the year before. Average room rate was up from £75.67 to £80.31, while occupancy was up 2.7% to 83%, although the group said it had seen evidence of slowdown in the UK market in the second half of the year.
Pat McCann, Dalata Group chief executive, said: "I am particularly pleased with the performance at our UK hotels. Our London hotels achieved revpar growth of 11.9% versus the city growth of 4.4%.
"Our regional UK hotels showed revpar growth of 7.8%, with our hotels in Cardiff, Manchester and Leeds outperforming the market. These results are a testament to our decentralised model which continues to underpin everything we do and is central to our success."
Dalata to open Maldron hotel in Glasgow >>
Dalata to open first Clayton hotel in Scotland >>
Dalata Hotels plans to focus on UK expansion >>
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