The country’s largest hotel group Dalata completed a transformational year with the announcement that it has added the Holiday Inn in Belfast to its portfolio of hotels for €25.7m.
The announcement accompanies the group’s first set of full-year results since its €256m flotation last March which showed revenues climbing more than 30%, capping a huge year for the group.
Earnings climbed 14.2% with Ebitda coming in at €6.1m, or excluding acquisition costs which hampered earnings growth, €8.23m – an increase of 54%.
“The business has performed very strongly in 2014,” Dalata chief executive Pat McCann said yesterday. “All our hotels showed revenue growth which was converted solidly to the bottom line. We have benefitted from the continued strong growth of the Dublin market and the start of recovery in the cities and towns outside of Dublin.”
Mr McCann also confirmed that 13 of the group’s hotels are to be bundled into a new brand, as revealed last month by the Irish Examiner, which will assume the title, ‘Clayton Hotels’.
The rebranded hotels will consist of eight of the nine Moran Bewley hotels acquired by Dalata — the exception being Bewleys Newlands Cross which is to become part of the Maldron group.
The remainder of the Clayton portfolio is to be made up of its newly acquired Belfast hotel, the Maldron on Cardiff Lane adjacent to the Bord Gáis Energy Theatre in Dublin, Whites of Wexford, its Cardiff property and the already-named Clayton hotel in Galway. Dalata’s other main brand, Maldron, will now encapsulate 14 hotels.
Revenue per available room — a key performance metric in the hotel sector —grew almost 16% on a like-for-like basis due to a 13% rise in average room rate.
Dalata delivered pre-tax profits of €4.2m or €6.3m excluding the impact of acquisitions.
After the acquisition of six individual hotels in Dublin, Galway, Derry and Wexford for a total consideration of €77m and the €453m of the nine Moran Bewleys hotels completed in February, the full proceeds of its IPO have been invested 12 months ahead of schedule.
Two term loan facilities totalling €282m were also raised to part finance the Moran Bewley deal.
The hotel group intends to invest 4% of its revenues on capital refurbishment each year with work carried out at Maldron Hotels in Cork, Wexford and Dublin Airport in the last year.
In the management services segment, Dalata’s business continues to evolve with revenue and EBITDA up 5.4% to €5.4m.
© Irish Examiner Ltd. All rights reserved