Irish hotel group Dalata reported revenue of €39.6 million and a pre-tax loss of €37.8 million in the first half of the year.
The company, which owns 29 hotels plus 16 leased or on management contracts, reported increased demand for staycations as hotels reopened in the UK in May and Ireland in June.
A 300-room hotel under the Maldron brand opened in Glasgow in August with a further six properties are due to open by May 2022 in Bristol, Manchester, Glasgow and Dublin.
Dalata said: “As expected, there was strong domestic demand for hotel stays once restrictions were lifted with occupancies improving month on month and hitting 68% in August.
“It is expected the improved trading environment will deliver an increase in earnings with adjusted ebitda for July and August projected to be approximately €24 million.”
The group had combined cash resources and undrawn debt facilities of €293 million at the end of August.
”While the emergence of new variants remains a threat, the progress being made on the rollout of vaccines across Europe and globally is very encouraging,” Dalata added.
“The outlook for the near term remains uncertain at present. A strong recovery in domestic leisure is underway and we expect domestic corporate business to further recover this month given the progressive easing of restrictions.
“The timing of the recovery of international leisure and corporate travel is somewhat uncertain but the ongoing global rollout of vaccines is a very positive influencing factor. The recovery of international travel is important for our Dublin and London hotels.”
Outgoing chief executive Pat McCann said: “As a sense of normality returns to society, the demand for domestic leisure has increased across Ireland and the UK.’
Dermot Crowley, who takes over on October 31, added: “The roll out of vaccines in both Ireland, the UK and globally has been very encouraging to date.
“International travel in Ireland returned on 19 July and restrictions were relaxed in the UK earlier in the summer.
“This is an important development as our hotels in Dublin and London require the return of international travel for occupancies to recover more substantially.
“The Irish and UK governments have provided tremendous supports to the hospitality industry over the last 18 months which have greatly helped us in weathering this crisis and protecting employment.
“As the hospitality industry begins to recover and these supports unwind, it is important to bear in mind that it will take some time for the industry to fully recover.
“One key support has been the reduced VAT rate of 9% in Ireland which should be extended further to support the industry and the large number of jobs that depend on it.”