Maldron hotel owner Dalata revenue rises despite 'softer' trade

While speaking on Morning Ireland, Dermot Crowley addressed criticism of how the hotel responded to increased demand amid the sale of Oasis tickets. PIic: MAXWELLS

Trade was lower than expected during the first six months for hotel conglomerate Dalata but its revenue increased nonetheless.

In its interim statement, Maldron hotel owner Dalata posted revenue of €302m, up 6% on the first six months of 2023 while earnings increased to €107.6m, up 4%.

However, the company posted a 15% decline in profit after tax to €36m and overall revenue per available room was marginally ahead of the same period a year earlier.

Dalata chief executive Dermot Crowley said “more measured domestic customer spending behaviour” led to “softer” trading in the period.

The company said demand from corporate and international visitors continues to be strong but it is seeing it weakening from more cost conscious domestic customers relative to last year.

However, the maintained momentum in revenue for Ireland’s largest hotel group which includes the Clayton may fuel arguments against a blanket hospitality Vat rate cut in the upcoming budget.

Lobby groups including the Restaurants Association of Ireland have called for the 13.5% Vat rate to be reduced to 9% for food-led businesses amid a recent increase in closures in this sector.

In addition, Dalata said the impact of the 4.5% Irish Vat rate increase “will be fully absorbed from 1 September.” 

Meanwhile, Mr Crowley said “the outlook for the Dublin economy is very encouraging, supported by rising population numbers, a significant growth in employment and strong international visitor numbers.” 

He added that Dalala is scheduled to announce over 6,500 additional rooms over the medium-term across all of our markets as it looks to keep growing in regional UK areas, expand its presence in London and the large European cities and maintain its market share in Ireland.

In the statement, Dalala also said it will tap the “strong” calendar events to take place in Dublin for the remainder of 2024.

While speaking on Morning Ireland, Dermot Crowley addressed criticism of how the hotel responded to increased demand amid the sale of Oasis tickets.

Mr Crowley said the company’s booking system became overwhelmed which led to a huge number of overbookings.