Profit increases at Ireland’s leading hotel group driven by strong Dublin performance
Dalata, Ireland’s largest hotel group, has reported profit before tax of €37.8m in the six months to June 30, a 6.7pc increase on last year.
Revenue for the period was up 12.2pc to €201.9m at the group, whose brands include the Maldron and Clayton hotels.
The results were driven by strong operational performance and growth from the new and extended hotels, according to interim results from Dalata.
The Dublin market continued to record a strong performance versus the market in regional Ireland.
However, revenue per available room in the company’s Dublin hotels in July and August was behind last year due to a number of factors, including a weaker calendar of events compared to 2018 and the ongoing impact of the VAT increase, the group said.
Pat McCann, Dalata group CEO, said he was “pleased” to report “another strong set of results.”
“Despite the challenges of a significant increase in the VAT rate in Ireland and the ongoing uncertainty surrounding the timing and nature of Brexit, 2019 to date, as a whole has been another very successful year.”
“The outlook for the balance of the year looks very positive. We are currently looking at a number of exciting opportunities in the UK and Ireland and we expect to announce further additions before the end of the year.”
Despite the ongoing uncertainty around Brexit in the UK, the group said its outlook for the year there is “positive.”
Dalata also today announced the acquisition of site in Shoreditch, London for £32.05m with planning approval for a new hotel. London's first Maldron hotel will have between 130 to 140 rooms and is expected to open in early 2022.
The total cost of developing the hotel, including the acquisition of the site, will be approximately £60m.