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Dalata Hotel Prepares 2018 Dividends After Strong Annual Growth

LONDON (Alliance News) - Dalata Hotel Group PLC said Tuesday it intends to begin paying ...

Alliance News 27 February, 2018 | 11:52AM
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LONDON (Alliance News) - Dalata Hotel Group PLC said Tuesday it intends to begin paying dividends in 2018 after profit and revenue per available room grew strongly in 2017 and expansion plans continue apace.

For the year ended December 31, pretax profit expanded 75% to EUR77.3 million from EUR44.1 million the year prior. This was after revenue advanced 20% to EUR348.5 million from EUR290.6 million the year before.

The Irish hotel group said occupancy levels also expanded to 83.1% in 2017 from 82.1% in 2016. Average room rate also grew 9.1% to EUR106.48 from EUR97.60 the year before. As a result, the revenue per available room rate rose 10% to EUR88.51 from EUR80.20 the year prior.

"2017 was another exciting time for Dalata, and I am delighted with the progress we have made," Dalata Chief Executive Officer Pat McCann said. "The team at Dalata have delivered another year of strong earnings growth and met our target to announce 1,200 new rooms per year."

Dalata has a current pipeline of 2,200 new rooms. These include four new hotels due to open in 2018 as well as extensions to two established hotels. Dalata has also entered into agreements to lease a further three new hotel developments.

"Our hotels continued to outperform the market with RevPAR growth of 11.0% in Dublin (excluding Clayton Hotel Burlington Road) versus the city as a whole of 7.7%," McCann added. "Including Clayton Hotel Burlington Road Dublin RevPAR increased by 9.2%. Hotels in Regional Ireland also performed well achieving RevPAR growth of 9.1%."

"I am particularly pleased with the performance at our UK hotels," McCann continued. "Our London hotels achieved RevPAR growth of 11.9% versus the city growth of 4.4%. Our regional UK hotels showed RevPAR growth of 7.8%, with our hotels in Cardiff, Manchester and Leeds outperforming the market. These results are a testament to our decentralised model which continues to underpin everything we do and is central to our success."

Dalata also reported its property portfolio was now valued at over EUR1.00 billion.

"The comparable amount at June 2014 was EUR23.9 million after we first listed on the stock exchange," McCann said. "This is a stark reminder of how fast we have grown and how far we have come in a relatively short space of time."

Dalata listed on AIM in March 2014, raising EUR265 million and valuing the firm at EUR305 million

Dalata added its trading in the first quarter of 2018 was "marginally ahead" of both its own and the market's expectations. Its construction projects remain on target and within budget. The firm also continued to seek further opportunities to expand its portfolio and was confident of meeting its goal of securing at least 1,200 new rooms in 2018.

Dividends are expected to commence in 2018, Dalata added, with the first anticipated to be an interim payment to be announced in September. It expects to provide a progressive dividend with the payout based on a percentage of profit after tax which is expected to be between 20% and 30%.

Shares in Dalata were 1.9% higher at 518.00 pence on Tuesday.

By Ahren Lester; ahrenlester@alliancenews.com.

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Dalata Hotel Group PLC 473.75 GBX 0.00 -
Dalata Hotel Group PLC 5.59 EUR 0.90 -

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