Ireland’s largest hotel company has reported no material impact from coronavirus on its business.
Dalata Hotel Group saw annual pre-tax profits rise by 2.7% last year over 2018 to reach €89.7 million despite marginally reduced revenue per available room.
The company, which has added 1,692 rooms in the last two years, reported a “very strong performance” in the UK.
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Dalata said: “Our regional UK hotels significantly outperformed the market in all cities in which we operate – Birmingham, Leeds, Manchester, Cardiff and Belfast.
“Our London hotels were behind the city as a whole but performed well within their own local markets.”
Strong cost control ensured that the group maintained earnings despite “tougher market conditions” in Ireland.
Dalata’s portfolio consists of 30 owned hotels, 11 leased properties and three under management contracts. A further 11 new hotels are being developed wit 2,871 rooms to open over the next three years.
Looking forward, the company said: “We continue to monitor closely the evolving and unfortunate COVID-19 (coronavirus) outbreak but to date we have seen no material impact on our business.”
Chief executive Pat McCann said: “We are mindful that Dalata is exposed to global headwinds that can impact the hospitality sector.
“We expect approximately another 1,900 hotel rooms will open in Dublin during 2020 and the digestion of this new supply will have an impact on the market.
“However, I remain encouraged by the strong forecasts for the Irish economy, further job creation by multinational companies and the continued demand for bedrooms.
“We showed our resilience in 2019 in the face of the impact of a 4.5% increase in the VAT rate in Ireland.
“We will continue to grow our portfolio, develop our people, exceed our customers’ expectations and maximise the return from our assets.
“We are very focused and ready for the challenges and opportunities that 2020 presents”.