Revenues rose at Irish hotel group Dalata by almost 30 per cent to €290.5 million in 2016, as the group's expanding portfolio benefited from strong demand.
In the year to December 31st, 2016 revenues at the group, which owns or operates 41 hotels with some 8,000 bedrooms across Ireland, Northern Ireland and the UK, rose by 28.8 per cent to €290.6 million, while adjusted earnings (EBITDA) increased by 35.9 per cent to €85.1 million, and adjusted diluted earnings per share rose to 26.58 cents from 24.76 cents previously.
Pre-tax profits rose by 55 per cent to €44.1 million, as the group revalued its property portfolio upwards to €66.6 million. The group’s Dublin-based hotels outperformed the market with RevPAR growth of 19.9 per cent versus city 16.1 per cent, while the group reported an occupancy rate of 82.1 per cent for 2016, up from 80.2 per cent in 2015. The group’s average room rate rose to €97.6, up from €87 in 2015.
The group added about seven hotels and about 1,600 rooms to the business in 2016, and has locked in a growth pipeline of 1,200 new hotel rooms which will come into operation during 2018.
So far in 2017, trading has been “marginally ahead” of expectations, the group said.“Prospects remain positive for all the markets we operate in,” Dalata said.
Looking to the year ahead, Pat McCann, chief executive, said: “We will continue to focus on improving returns from our current portfolio. We also intend to expand our hotel portfolio, particularly in the UK, seeking new or existing hotel opportunities which match our investment criteria.”
