Dalata Hotel Group reported revenue of €652.2m last year, up 7.3pc on 2023 with Adjusted EBITDA1 of €234.5m, up 5.1pc, supported by additions to the portfolio
It has announced a strategic review of the business and said it is exploring all options, including its potential sale. Dalata has appointed Rothschild & Co as financial adviser in connection with its strategic review.
The group anticipates a 2.5pc increase in ‘like for like’ RevPAR for the first quarter of 2025, with a forecasted 5pc rise in RevPAR for Dublin hotels compared to 2024.
The Group expects higher payroll costs of approximately 5pc in 2025 due to changes in English National Insurance and increased minimum wage rates in Ireland and elsewhere.
Dalata plans to mitigate inflation impacts through efficiency initiatives and a €2m reduction in energy contracting costs while benefiting from growing air traffic and strong event calendars.
A final dividend of 8.4 cents per share was proposed on 5 March 2025, amounting to around €17.8m, pending approval at the Annual General Meeting, with a payment date set for 8 May 2025.
CEO Dermot Crowley noted that Dalata has expanded its portfolio by about 35pc since 2021, reaching nearly 12,000 rooms while focusing on strategic growth and operational efficiency, resulting in strong financial performance and significant shareholder returns.
The group has launched a strategic review to explore capital optimisation options and enhance shareholder value, which may include a potential sale of the Group.
The company has appointed Rothschild & Co as its financial adviser for this review, aimed at addressing structural challenges and maximising investment opportunities.
Dalata, established in 2007, operates 55 high-quality hotels, including 30 owned properties valued at €1.7 billion, with a focus on expanding its presence in Dublin and London.
The Group reported record revenue of €652.2m in 2024, alongside an Adjusted EBITDA of €234.5m, underscoring its strong cash flow generation and promising growth prospects.
John Hennessy, Chairman of Dalata, emphasised the importance of capital availability to achieve the ambitious 2030 Vision of operating 21,000 rooms by 2030, while CEO Dermot Crowley reiterated the Group’s commitment to maintaining focus on its core operations during the review process.
John Hennessy, Dalata Chairman shared: “The Board is excited about the 2030 Vision that was outlined by our senior management team at our Capital Markets Day in October 2024. However, we are unanimous in the view that the key to achieving that vision is the availability of capital; and that the share price does not reflect the underlying value of the company. We believe that now is the right time to undertake a rigorous and formal strategic review, which will consider options to increase access to capital and also enhance shareholder value.”
Dermot Crowley, Dalata Chief Executive Officer said: “Our 2030 Vision strategy sets an exciting goal to have 21,000 rooms either operational or under construction by 2030. We have an excellent management platform in place to deliver this strategy but access to capital is essential to achieve our vision. A thorough strategic review will enable us to assess available options to increase our access to capital and enhance shareholder value. During the process we will remain focused on the underlying business – continuing to take care of our people and continuing to meet the expectations of our customers. We have exciting initiatives in place to enhance further our revenues and deliver further productivity – our teams will remain focused on delivering on the objectives that we have set ourselves for 2025.”
