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Dalata Hotel Profit Feels Benefit Of Acquisitions And Strong Portfolio

LONDON (Alliance News) - Dalata Hotel Group PLC on Tuesday said its annual profit increased with ...

Alliance News 26 February, 2019 | 10:57AM
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LONDON (Alliance News) - Dalata Hotel Group PLC on Tuesday said its annual profit increased with an improved performance from its existing portfolio and a boost from acquisitions.

The Irish hotel operator's pretax profit for 2018 totalled EUR87.3 million, an increase of 13% over its EUR77.3 million profit the year before.

Revenue growth was strong, up 12% at EUR393.7 million versus EUR352.2 million in 2017. Of this growth, EUR24.8 million was attributed to a better performance from Dalata's existing hotel portfolio, EUR13.2 million was due to new hotels acquired in 2017, and EUR9.6 million came from five new hotels opened in 2018.

These gains were offset by a EUR3.7 million loss of revenue on the sale of the Croydon Park hotel in June 2017. The closure of Tara Towers hotel, and a reduction in management contacts, also deducted from revenue growth.

A final dividend of 7.0 EUR cents per share was declared, bringing its total dividend to 10.0 cents. In its 2017 results, Dalata announced it would begin paying dividends from 2018 onwards and had adopted a progressive dividend policy.

Dalata opened more than 1,150 new rooms in 2018 and has agreed a EUR525 million debt facility to support further growth.

Dalata said: "Trading across our three regions is in line with our expectations for the first quarter of 2019. We are confident in our outlook and we note the positive economic projections for Ireland and the increasingly strong tourist numbers. We continue to monitor the ongoing uncertainty surrounding Brexit but we have seen no impact on trading.

"We are very happy with trading at the hotels opened in the second half of last year. We fully expect them to contribute positively to earnings in 2019.

"We are very confident that we will meet our target of announcing 1,200 new rooms in 2019 through new build hotels, extensions of our existing hotels and opportunistic acquisitions which fit our strategic and operational criteria. We are delighted to have already announced in 2019 two new projects in Dublin which will deliver circa 270 rooms."

Shares in Dalata were up 0.4% at 503.26p on Tuesday.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Dalata Hotel Group PLC 486.47 GBX 5.41 -
Dalata Hotel Group PLC 5.57 EUR 1.27 -

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