No negative impact from Brexit on Dalata as group reports trading 'in line with expectations'
Ireland's biggest hotel group, Dalata, says it expects earnings before interest, taxation, depreciation, and amortisation (ebitda) for 2018 to be "in line with market expectations."
In a trading update today the company, which has ambitions to expand its business model into Europe, said trading in the final four months of the year has been "as expected".
On the matter of Brexit, Dermot Crowley, deputy CEO - business development & finance at the group, said the group "noted" the ongoing uncertainty surrounding the final outcome.
"To date, we have seen no negative impact on trading in any of our hotels in the UK or Ireland," Mr Crowley said.
"We did deem it prudent to complete our refinancing package earlier than originally planned and are now happy to have debt funding in place until at least late 2023, on improved terms."
"The positive trading impact of hotels opened during 2018 will be significant on a full year basis in 2019, which in turn will reduce our net debt to ebitda ratio as we go through next year," Mr Crowley continued.
The group, whose brands include the Clayton and Maldron hotel chains, said the Dublin market remained "very strong" in the second half of the year.
On a like-for-like basis, revenue per available room at the hotels grew by 8.8pc in the 11 months to the end of November, versus the market growth of 7.4pc. Like-for-like growth excludes hotels opened in 2018, the Tara Towers hotel which closed in September 2018 and hotels to which significant extensions were added.
The group’s regional Ireland portfolio also performed very well achieving revenue per available room increase of 5.3pc for the 11 months to the end of November.
Elsewhere and in the UK, revenue per available room grew by 3.2pc over the 11 months.
In the final three months of this year the group will have opened three new hotels; the Clayton Hotel Charlemont in Dublin, the Maldron Hotel Newcastle, and the Maldron Hotel South Mall in Cork, which will open later this week.
Dalata added that it continues to make good progress on its development pipeline of over 2,100 rooms across the UK and Ireland.