- Dalata shares are up 28% year-to-date
- Expects hotel revenue to €600 million in 2023
- More hotels in the pipeline for 2024
Shares in Dublin-based Dalata Hotels (DAL:AIM) were up over 5% at 377p in morning trading as Ireland’s largest hotel operator said it delivered ‘another record year of growth.’
In a trading update for the second half of 2023, the company said it expected hotel revenue for the year 2023 to exceed €600 million compared to €516 million in the same period a year ago while adjusted EBITDA (earnings before interest taxation depreciation and amortisation) would be in excess of €220 million.
Hotel groups Dalata and PPHE look to benefit from strong summer trading trends
Berenberg analysts were upbeat, saying in a research note: ‘Looking into 2024, we continue to like Dalata - management has an exceptional track record of creating value for shareholders and the company has an attractive pipeline in the UK regions and London, which should drive further growth.
‘Strong lead indicators across Dalata’s consumer segments - including the return of more direct flight connections and a further recovery in corporate travel - adds an additional leg to growth.’
For the second half of 2023, group revenue per available room (RevPAR) is expected to be 3% ahead of 2022 levels.
Ireland's largest hotel company has added several new sites to its portfolio in London and Europe during 2023, including Maldron Hotel Finsbury Park, Clayton Hotel London Wall and Clayton Hotel Amsterdam American.
The hotel group said it would complete four new hotels in 2024 adding another 834 rooms to the portfolio. The first hotel will be in Brighton and Liverpool, its fourth hotel in Manchester and fifth in London.
