Irish company Dalata Hotel Group is extending the maturity of more than €500 million in debt facilities.
The agreement with banks provides “additional flexibility” as the business recovers from the impact of the Covid-19 pandemic.
The group had cash and undrawn facilities of €303 million at the end of October.
In a trading update, the company said positive momentum since hotels re-opened has continued.
Trading was stronger than expected in September and October with the group’s hotels achieving occupancies for the two-month period of 60% in Dublin, 67% in regional Ireland, 72% in London and 75% in regional UK and Northern Ireland.
Dalata said: “The decrease in staycations following the summer period is being replaced by an uplift in demand from domestic corporates and project work.
“Domestic leisure demand at weekends continues to be strong across all regions. There has also been an uplift from the resumption of international visitors coming to Ireland.”
The Group continues to proactively manage costs as trade recovers and utilise available Government supports to protect employment.
Adjusted earnings [ebitda] for July to October is expected to be about €47 million.
“In Ireland, Covid-19 restrictions on trade were further relaxed on 22 October although the full lifting of restrictions has been delayed by the Government in line with public health advice,” the company said. “The calendar of events for the final two months of the year in Ireland is improving and we are seeing increased enquiries at our hotels.”
Conal O’Neill (pictured) is being promoted to chief operations officer from January 1 following the planned retirement of deputy chief executive Stephen McNally.
New group chief executive Dermot Crowley said: “I am delighted that we have reached agreement with our banking club to extend our facilities out to October 2025.
“This reflects the strength of our financial position and the quality of our relationships with our banking partners.
“Although trading has been better than expected over the last five months, we need to maintain financial flexibility given the uncertain trajectory of Covid-19 since March 2020.
“The ongoing support we have received from our banking partners, shareholders and institutional landlords, coupled with the welcome assistance from the Irish and UK governments, has been critical in allowing us to protect the business and our employees during this time.
“Trade has surpassed our expectations over the last two months. As each segment of our customer base opens up, the recovery in demand has been very strong.
“We await the return of international corporate travel and the demand associated with large conferences. However, it is very encouraging to see international leisure visitors starting to return to Dublin as well as the continuing strength of the domestic corporate and leisure segments across both Ireland and the UK.
“Whilst still not back to pre-pandemic trading levels, it is good to be firmly established on the path to recovery.”