Expansion strategy still paying off for Dalata Hotel Group

2nd May 2019 14:50

(Sharecast News) - Ireland-focussed hotel operator Dalata Hotel Group spoke of "another successful year" on Thursday, as its investors gathered for the company's annual general meeting.The AIM-traded firm noted that it delivered "strong" earnings growth, paid its maiden dividend, and secured new debt facilities of €525m.It also expanded its portfolio of hotels, with the number of rooms rising to more than 9,000 at the end of the year from around 7,600 at the start."This momentum has continued into 2019 as we maximise on-going returns from our existing portfolio," said chairman John Hennessy at the meeting on Thursday."The six new hotels that opened on time and on budget during 2018 and early 2019 are progressing well."Maldron Hotel in Belfast City and Maldron Hotel Kevin Street in Dublin opened in March and July 2018 respectively, and in the final quarter of 2018, the company opened three new hotels - Clayton Hotel Charlemont in Dublin, Maldron Hotel South Mall in Cork, and Maldron Hotel Newcastle.In January, it opened the newly-acquired Clayton Hotel City of London."Overall, the group's trading performance in the first four months of 2019 is in line with our expectations and ahead of the first four months of 2018," Hennessy explained."Revenue per available room (RevPAR) in the Dublin market as a whole is effectively on a par with last year for the first quarter of 2019."We are delighted to report that on a 'like for like' basis, RevPAR in our Dublin hotels was up 2.4%."Dalata said RevPAR growth in its regional Ireland hotels was positive, and ahead of the market as a whole.On a like-for-like basis, RevPAR at the firm's UK hotels was up 3.0% in the first quarter of 2019, and in all but one city, its hotels outperformed the market in RevPAR growth.Dalata said its trading in the second quarter remained "encouraging", with the outlook for the first six months of the year positive."Our pipeline of almost 2,200 rooms is scheduled to open between late 2020 and the second quarter of 2021," John Hennessy said."The new hotels are ideally situated in prime city-centre locations in Bristol, Manchester, Glasgow, Birmingham and Dublin."We remain very encouraged about our opportunities for growth and are currently looking at extensions to our existing properties as well as securing additional hotel leases in our twenty target cities in the UK."He said the board was continuing to "monitor" the possible outcome of Brexit, with the company's position still that there would be both challenges and opportunities."We are confident that 2019 will be another exciting year for the group."Our strong team of people will continue to drive the business forward and ensure we are focused on delivering excellent returns for our shareholders."