Dalata revenue soars 185pc as firm records €28.5m profit
Revenue at Dalata, Ireland's largest hotel operator, soared 185pc up to €225.7m last year as the firm reported a pre-tax profit of €28.5m.
2015 was a busy year of acquisitions for the firm, which completed the purchases of Tara Towers in Dublin, the Clarion Hotel in Sligo, and a Dublin city centre site set to become a 181-room Clayton hotel.
In the company's annual results for 2015 filed this morning Dalata reported a seven-fold increase on its EBITDA, hoisting it up to €62.6m.
Speaking on RTÉ's Morning Ireland, Dalata chief, Pat McCann, didn't rule out making a move for the Gresham Hotel, which is likely to go to market with a €60m price tag.
"We'll look at it, our view on it is that it's going to be very well bid and that there will be a lot of international companies looking at it. We'll certainly look at it but we won't overpay for it," Mr McCann said.
In the 12 months ending December 31 the firm acquired 15 hotels throughout Ireland and the UK, splashing out €558.8m in the process.
Dalata made a €44.9m gain on the revaluation of its property and it also raised €202.2m (after costs) in equity and €282m in debt to fund acquisitions over the course of the year.
The firm's chief executive described 2015 as "a remarkable year" for Dalata.
"The results for 2015 highlight the momentous change that the Group has undergone as a result of the acquisition of 15 hotels. We now have a strong operating platform and management capacity from which we will continue to grow and create value for our stakeholders," he said.
Mr McCann continued, praising the integration of its new hotels over the last 12 monhts.
"We successfully integrated the 15 acquired hotels into the group. These properties have performed above our expectations which is a testament to the effectiveness of our integration process. There remains significant opportunity to improve further the performance of these acquired hotels as the impact of our decentralised management approach is felt," he said.
Dalata's revenue per available room rose by 21.4pc, which was significantly helped by an uplift in the average room rate of 13.9pc.
In a statement released to shareholders this morning, Mr McCann also outlined the firm's intentions to "pursue potential opportunities" to grow its hotel brands.