Maldron hotel owner Dalata is set to reach more than €500m in revenue as hotel room prices increase

Dalata said there is continued strong leisure demand and a “notable increase” in North American visitors supported by the favourable dollar exchange rate.

Group CEO of Dalata Dermot Crowley

Ireland’s largest hotel group Dalata is on track to beat pre-pandemic trading levels following increases in room rates and higher numbers of people travelling after Covid-19 lockdowns.

In a trading update, the Maldron hotel owner said it expects to surpass €500m in revenue by the end of the year, which would be a first in the company’s history.

“2022 has been a very successful year for Dalata where we demonstrated our ability to bounce back from the challenges of Covid-19,” said Dermot Crowley, Dalata CEO.

The company said its business was boosted by a rise in corporate bookings after the summer period. The hotel operator also said there is continued strong leisure demand and a “notable increase” in North American visitors supported by the favourable dollar exchange rate.

Earlier this year, Dalata raised its hotel room rates due to pent-up demand and supply pressures exacerbated by the war in Ukraine as many refugees are being housed in hotels under government contracts.

This year, the average room rate in Dublin was around €160 per night. This is an increase of 21% over 2019 on a like-for-like basis for Dalata.

“We remain mindful of global inflationary cost pressures and the potential impact on consumer discretionary spending,” said Mr Crowley.

“We will continue to focus our efforts on protecting and growing the business sustainably as we have always done,” he added.

The Group announced it will introduce a pay increases of 6.5% for employees earning below €13 per hour and 4% for those earning above this level, effective from the start January.

Dalata also welcomed the business energy supports in Ireland and the UK. The company now expects its gas and electricity costs for 2022 to be approximately €32m, down from previous guidance of €34m.

The company said it remains “cautiously optimistic” on its outlook for 2023 amid the current uncertain economic environment.

It said it will continue to monitor the macroeconomic backdrop and any potential for a slowdown, especially in domestic leisure demand. However, it said it is “not seeing any such indicators in our trade levels to date”.

Dalata was founded in 2007 and its portfolio has grown to include 50 primarily 4-star hotels situated in city-centre locations with over 10,950 rooms across 29 owned hotels, 18 leased hotels and three management contracts.

The Group plans to expand further into the UK and continental Europe with a pipeline of 1,125 rooms. For the first six months of 2022, Dalata reported revenue of €220m and a profit after tax of €47m.