Ireland’s largest hotel group Dalata said that the recovery for the hotel industry has been faster than anticipated and continues to surpass the group’s expectations.
In a trading update for the second quarter of the year, Dalata said that revenue per available room (RevPAR) was 9pc above 2019 levels for the March / April period. This is expected to rise to 18pc of pre-pandemic levels for the May/ June period.
Dalata’s RevPAR for May/ June in UK and regional Ireland is also expected to be 7pc and 27pc ahead of 2019 levels respectively.
The company, which operates the Clayton and Maldron brands, also said that the recovery in Dublin had been “particularly strong” due to the combination of limited supply and increased demand. This comes as large events return in the city and weekend trips increase.
Dalata also attributed the reduction in supply to Ukrainian refugees accessing emergency accommodation.
The company expects adjusted EBITDA to be around €81m for the six months ending 30 June despite restrictions in the first two months of the year.
In 2021, the group reported a loss after tax of €6.3m, with revenues of €192m.
The hotel operator is currently experiencing cost inflation across the business but says demand has not been impacted. Chief executive Dermot Crowley said that the group would continue to honour “longstanding agreed prices” over the summer despite this inflation.
He also added that the average room rate in Dublin has risen by a fifth since 2019 but that the group’s hotels were expecting to reach an occupancy of 93pc in June.
“The outlook for the summer months appears positive, and while inflationary concerns remain, this is a sector-wide issue, and the strong room rate helps to mitigate this,” said Goodbody analyst David Brohan.
"Encouragingly the group has also not seen an adverse impact wide from the weaker macro backdrop.”
Dalata has also completed the sale of the Clayton Crown Hotel in London for £21m ( €24m). The group owns 48 hotels across Ireland, the UK and continental Europe.