Clayton hotel owner reports record revenues as room rates rise, promises interim dividend

Dalata CEO Dermot Crowley at the Clayton Hotel in Leopardstown

Sarah Collins

February 28 2023 07:47 AM

Dalata hotels revenue topped half a billion euro for the first time last year as average room rates rose by more than a third, leading the group to promise a dividend for the first time since 2020.

Dalata, which operates the Clayton and Maldron hotels, saw room occupancy almost double to over 75pc in the year to December, although it is still below 2019 levels (82pc), Dalata announced in its full-year 2022 results Tuesday.

Revenue per average more more than doubled to €102.23 – above 2019 levels – as room rates rose to €134.80, well ahead of both 2021 and pre-pandemic levels.

The group plans to reintroduce dividend payments in the second half of this year – with an interim dividend promised after first-half results – on the back of the buoyant figures.

Revenue from hotel operations almost tripled on 2021 levels to €515.7m. It was up 20pc on pre-pandemic operations.

Adjusted earnings before interest taxes and depreciation and amortisation (EBITDA) were up to €183.4m, more than twice 2021 levels and a 13pc improvement on before the pandemic.

Profit after tax came in at €96.7m, up 24pc on 2019 levels. The group made a loss before tax in 2021.

The Dublin-listed hotel group added more than 1,900 rooms last year, with 1,333 more planned.

Total rooms number 10,953, up by a almost fifth since December 2019, after Dalata opened six leased hotels and one owned hotel - the Maldron Hotel on Merrion Road in Dublin - in 2022.

A new London hotel is due to open this summer and four new UK hotels are currently under construction, with the UK now making up 37pc of Dalata’s portfolio.

The group remains “cautiously optimistic” on its outlook for 2023, it said, as business events get back to normal and US travellers return.

Like for like revenue per available room in January and February is expected to be between 17pc and 54pc ahead of 2019 levels this year, depending on location.

The group entered into fixed pricing contracts for over 85pc of its projected gas and electricity consumption in 2023, with costs expected to be €700,000 lower than 2022.

Chief executive Dermot Crowley welcomed Irish government supports, including the extension of the 9pc Vat rate for tourism and hospitality.

“We have emerged from the pandemic and its after-effects with a business that has grown in scale and ambition,” he said.

“In 2023, Dalata is well set to capitalise on the opportunities that will undoubtedly arise in the markets in which we operate.

“We remain confident in our ability to outperform with our modern hotel portfolio, our focus on sustainability, our decentralised operating model and our track record of providing a superior guest experience.”