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Dalata To Meet Market Expectations After Positive Year-To-Date Trading

LONDON (Alliance News) - Dalata Hotel Group PLC said on Tuesday trading in the last four months ...

Alliance News 19 December, 2017 | 10:34AM
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LONDON (Alliance News) - Dalata Hotel Group PLC said on Tuesday trading in the last four months of the year has been as expected, with earnings to meet market expectations for 2017.

Dalata said the Dublin market has continued to be "very strong" over the second half. Revenue per available room, a key hotel industry performance marker, was up 9.5% year-on-year for the eleven months to the end of November. Likewise, it said, revPar growth in its Regional Ireland portfolio rose 8.7% for the same period year-on-year.

RevPar growth has been slower in London, as anticipated, leading to overall slower growth in the UK & Northern Ireland portfolio, though it was still the strongest of the group's three regions with revPar growth of 10%.

Dalata said it has made "excellent" progress on its development pipeline of over 1,840 rooms across the UK and Ireland, including Maldron hotels in Belfast and Dublin due to open in 2018.

The opening of Maldron Hotel Newcastle has been deferred to 2019, instead of late 2018, and a formal planning applications has been submitted for planning application has been submitted for Clayton Hotel Manchester.

Dalta also said it has secured the lease for a new Maldron hotel to be built in Glasgow, with around 250 rooms as well as conference facilities. It will operate the hotel under a 35 year lease, and the hotel is projected to open in the second half of 2020.

Additionally, it has agreed to acquire 24 suites in the Clayton hotel in Cardiff for EUR8.7 million and 13 further suites in the Clayton hotel in Liffey Valley for EUR2.0 million. It will as a result own 252 out of the 304 bedrooms in Cardiff and 261 out of the 361 rooms in Liffey Valley.

Deputy Chief Executive Dermot Crowley commented: "2017 has been another very successful year for Dalata in terms of trading at our existing hotels, the acquisition of new hotels and building up a development pipeline in the UK. Our hotel portfolio continues to perform very strongly across the all of our regions. We are very happy to have secured the effective freehold interests of additional rooms at both Clayton Hotel Cardiff Lane and Clayton Hotel Liffey Valley.

"We are delighted to have entered into an agreement to lease a newly constructed Maldron hotel in Glasgow. We have a very strong relationship with McAleer & Rushe who are currently building our new hotels in Belfast, Newcastle and Charlemont, Dublin. Today's announcement brings the number of UK hotels in our development pipeline to 5 with a total of circa 1,350 rooms."

He added: "Given the pipeline of hotels due to open in the next year and the continued strength of trading in our three regions, we look forward to 2018 with confidence."

Dalata shares were untraded Tuesday at 541.50 pence.

By George Collard; georgecollard@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Dalata Hotel Group PLC 475.00 GBX 6.15 -
Dalata Hotel Group PLC 5.68 EUR 6.77 -

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Alliance News

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