Clayton hotel owner Dalata eyes expansion as revenue grows further

Dalata chief executive Dermot Crowley

Ireland’s largest hotel provider Dalata announced it will expand further into the UK amid bumper revenues following room rate increases.

Dalata, which operates the Maldron hotels, said it plans to build a £40m (€46m) 216-bedroom extension at Clayton Hotel Manchester Airport and is focused on growing in 11 cities in the UK and establishing a presence in targeted large European cities.

The company added that it remains optimistic in its trading outlook despite the “ongoing uncertainty in the macro-economic environment.”

The Clayton hotel owner posted revenue of €600m for 2023, up 18% from the previous year, as the company’s average room rate jumped 6% to €143 while occupancy levels also rose from 76% to 80%.

The company also reported a 4% decline in profit after tax to €105m.

Many hotels have benefitted from the return of leisure spending post-pandemic and lucrative State contracts to provide emergency accommodation to refugees. They are also expected to cash in this year as concert-goers flock to cities to see artists including Taylor Swift and Coldplay.

Dalata said the hotel market was impacted by the additional supply of approximately 1,800 rooms compared to the same period last year due to the opening of new hotels and some hotels returning from government use in Spring 2023.

Dalata chief executive Dermot Crowley said the company is committed responding “to the challenges and opportunities facing our industry and that the company has “achieved a notable increase in productivity by streamlining work practices within our accommodation and kitchens which is critical given the significant increase in minimum wage rates in Ireland and the UK.”