Ireland’s biggest hotel group Dalata Hotels hailed a ‘transformational year” in 2015 with a surge in sales and pre-tax profits.
The growing company saw revenue rise by 185% to €225.7 million and profit up to €28.5 million from €4.1 million the previous year.
This came as the group integrated 15 new hotels into its portfolio in Ireland and the UK ahead of planned timelines at a cost of €558.8 million.
Dalata raised almost €500 million in the year to fund acquisitions.
The company saw average room rates rise by 13.9% to lift revenue per available room by 21.4% year-on-year.
Dalata described prospects for Dublin and regional Ireland as remaining “very strong”.
Trading in the first two months of 2016 has been stronger than expected in Ireland and in line with expectations in the UK.
However, the weakness of sterling may have a negative impact on ‘euro translated’ earnings from the group’s UK hotels.
The company expected to spend a further €130 million this year as part of its ongoing expansion, describing the pipeline for new opportunities as “very strong”.
Dalata has acquired the Tara Towers Hotel in Dublin for €13.2 million since the start of the year and a site in the centre of the Irish capital to build a new 181-room Clayton hotel.
Contracts have been exchanged on the purchase of the Clarion Hotel in Sligo and leaseholds on four other properties in Ireland and the UK.
Chief executive, Pat McCann, said: “2015 has been a remarkable year for Dalata. The results for 2015 highlight the momentous change that the group has undergone as a result of the acquisition of 15 hotels. We now have a strong operating platform and management capacity from which we will continue to grow and create value for our stakeholders.
“We continue to benefit from the uplift in the Irish hotel sector and the increased consumer confidence in the domestic economy.
“All our Irish hotels have performed strongly and we are particularly happy in the way the increased revenue has been converted strongly to the bottom line.
“We are also pleased with the performance of our UK hotels. The provincial UK hotels performed very strongly in line with the markets in which they operate.
“We do note the slowdown in the London market and the impact on our two London properties.
“However, the construction works at our Clayton Chiswick hotel are close to completion and we expect that property to make a significant contribution for the remainder of 2016.”