IN BRIEF: Dalata Hotel swings to loss amid pandemic; founder to depart

Dalata Hotel Group PLC - Irish hotel operator - Swings to EUR111.5 million pretax loss in 2020 ...

Alliance News 2 March, 2021 | 2:33PM
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Dalata Hotel Group PLC - Irish hotel operator - Swings to EUR111.5 million pretax loss in 2020 from a EUR89.7 million profit the year before as revenue slumps to just EUR136.8 million from EUR429.2 million the prior year. Dalata says: "From March, the group's financial performance was severely impacted by the Covid-19 pandemic and changing government lockdowns and travel restrictions across its markets for the remainder of the year and into 2021." Occupancy falls to just 31% in 2020 from 83% in 2019.

Dalata expects to post an adjusted Ebitda loss of around EUR2.5 million for the first two months of 2020 as all of its hotels have been closed to the general public since the start of 2021. Cash and undrawn debt facilities at Feb end EUR290 million.

In terms of outlook, Dalata says: "The outlook for the near term remains uncertain at present and it is not yet known when international travel will return to more normal levels. However, we remain ready and primed to get back to full operating levels once restrictions are lifted. The rollout of vaccines across Europe and globally is very encouraging, with the speed of rollout increasing as we move towards Q2.

"As lockdowns and travel restrictions are gradually eased, the group anticipates domestic demand will return in the first instance, as seen in July and August 2020 when restrictions were relaxed in Ireland and the UK, followed by international leisure and business travel."

Chief Executive Pat McCann to step down after a transition period, having been CEO since founding Dalata in 2007. Deputy CEO Dermot Crowley will succeed McCann.

Current stock price: 356.00 pence; down 2.7% on Tuesday

Year-to-date change: up 5.9%

By Anna Farley; annafarley@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Dalata Hotel Group PLC 384.00 GBX 0.00 -
Dalata Hotel Group PLC 4.38 EUR -1.57 -

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