Ireland’s largest hotel group trimmed its annual losses and issued an upbeat projection about business recovery from the pandemic despite uncertainty over the Russian invasion of Ukraine.
Dalata Hotel Group’s pre-tax losses were cut by almost 90% to €11.4 million in 2021 over the previous 12 months.
The improved performance came as revenue rose by 40% to €192 million, but down on the €429 million achieved in pre-pandemic 2019.
Group chief executive Dermot Crowley said: “Given the uncertain environment with potential further Covid-19 variants and the current conflict in Ukraine and its potential wider global implication, we continue to remain agile and proactively manage the business as we always have.
“We remain vigilant in light of the current challenges facing the hospitality industry, particularly inflationary pressures and labour shortages.
“I am optimistic and truly confident in our abilities to respond to and grow in this emerging environment.”
Trade at the start of 2022 was disrupted by restrictions following the emergence of the Omicron variant.
However, January and February are traditionally the quietest months for the company, which is growing its presence in the UK.
“Virtually all restrictions in Ireland and the UK were removed at the end of January which resulted in a rise in bookings, with ‘like for like’ group occupancy increasing from 38% in January to 62% in February,” Dalata said.
Revenue per available room for February is expected to be 91% of the level achieved in 2019.
The company added: “As we look forward, and in the absence of any further material Covid-19 restrictions, we remain optimistic about the ongoing recovery of the business.
“There has been significant pent-up demand for travel following the easing of restrictions, and due to a combination of a more benign evolution of the Covid-19 virus and high levels of vaccination, we expect this to continue.
“As more and more companies return to their physical offices, we expect this to be a catalyst for increased domestic corporate travel and the return of international corporate travel and conferences.
“The indication of the return of airline capacity and strong calendar of events is also promising.”
Crowley added: “The domestic recovery in Q3 2021 demonstrated the strength of pent-up leisure demand.
“There is a strong calendar of events for 2022, and as flight capacity increases, I expect a strong return of international leisure travel.
“As more and more companies return to offices I believe this will provide a catalyst for the recovery of international corporate travel.”
Pictured: Dermot Crowley and new chief financial officer Carol Phelan.