Dalata Upbeat Despite Slow Trading; Strategic Review of Business Ongoing

Dalata Hotel Group – which owns the Clayton and Maldron brands – has said trading levels in March were lower than expected.

March is traditionally Dalata’s most significant month of the first quarter of the year. The group said trading was lower due to a slower pick-up than anticipated in transient leisure business.

That said, the group said RevPAR (revenue per available room, which is a key growth metric for the hotel sector) for the January to April period will be in line and ahead by 3% in the Dublin area.

In an update to shareholders at its AGM, in Dublin this week, Dalata said the event calendar for Dublin in May and June of 2024 was exceptionally strong and, due to that, RevPar in those months this year will be lower year-on-year.

The group this week added Spain to its growing list of mainland Europe destinations, which also includes the Netherlands and Germany.

But, Ireland and the UK remain Dalata’s core markets and the group said slower demand has impacted its London and regional UK properties, with year-to-date RevPAR in the UK currently 2.5% behind last year.

That said, Dalata chairman John Hennessy struck an upbeat tone at the agm.

Regarding Ireland, Mr Hennessy said: “We continue to monitor any potential impact of global political events on Ireland but given what we know today, we remain confident in our outlook for the economy and the hospitality industry within it. We recognise the uncertainty around tariffs but note the economy is in a healthy position with a significant Government surplus and strong employment growth. We welcome the suspension of the passenger cap at Dublin Airport allowing additional capacity to meet the strong demand from airlines. We also welcome the introduction of The Short-Term Letting and Tourism Bill which will help regulate more effectively short-term lettings.“

Regarding the London market, Mr Hennessy told shareholders: “The outlook for London looks stronger as we enter the summer months. We have a very modern well invested and well-located portfolio of hotels in the UK and are confident of our ability to perform strongly within the UK market as we continue to grow our presence there.“

He added that the strategic review, announced in March, which includes a potential sale of the group and means Dalata is effectively up for sale, remains ongoing with management set to update shareholders “in due course”.