Dalata Hotel Group confident of further mainland Europe push as recovery picks up

Clayton Hotels owner Dalata is "very positive" about its outlook, but says it remains a good bit off returning to pre-Covid earnings levels.

The Dalata Hotel Group is “very confident” of its ability to significantly expand across mainland Europe in the next few years as international tourism begins to recover.

Speaking on the back of a positive set of annual financial results, given the operating upheaval caused by the Covid pandemic, Dalata chief executive Dermot Crowley said while a full recovery to pre-Covid profitability is unlikely this year but the outlook is “very positive”.

Dalata is the largest hotel operator in Ireland through its ownership of the Clayton and Maldron chains. It said it generated revenues of €192m in 2021, representing growth of just over 40%. The group also massively slashed its annual losses to €11.4m compared to €111.5m in 2020.

In pre-Covid 2019, Dalata was generating profits of nearly €90m and revenues of over €429m. Dalata benefitted from a surge in bookings across its regional hotels in Ireland and the UK last summer when domestic staycation users took advantage of a relaxation of Covid restrictions. 

The emergence of the Omicron variant at the end of the year hampered further growth, but Dalata said it has seen an increase in international visitor bookings in its city-based Irish hotels in the past four to five weeks.

Mr Crowley also said the group is hopeful of a recovery in US visitor bookings for this year’s St Patrick’s Day celebrations.

While Dalata is confident of further recovery, Mr Crowley said it will keep an eye on obvious challenges such as inflation and lingering Covid disruption. He said it is “far too early” to know if the Ukraine crisis will affect international travel confidence.

New hotels

Currently, Dalata plans to open seven new hotels this year, with five slated for the next two years. The bulk of the group’s expansion plans still centre on the UK market, but Mr Crowley said the business is “looking all the time” at opportunities in central Europe.

Last month, Dalata announced its first hotel outside of Ireland and the UK with a move into Germany. It agreed to buy the operating leasehold of the existing Nikko Hotel in Dusseldorf, which will keep its name.

Mr Crowley said Dalata has established a strong reputation among European hotel owners and will be able to benefit from any ownership opportunity that may arise. He said Dalata will look at any large city – from Amsterdam to Rome – which can attract both leisure and corporate business. 

He added Dalata would decide on a case-by-case basis between operating existing hotels under their own brands and rolling out its Clayton/Maldron brands across Europe.