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Travel rebound buoys Irish hotel group

A rebound in international travel conferences and domestic tourism is buoying Ireland’s largest hotel group.

Dalata Hotel Group, which has 50 properties in Ireland, the UK and continental Europe, reported strong trading since the start of the year.

Company chair John Hennessy is due to tell the Dalata annual meeting in Dublin today (Thursday) that that revpar (revenue per available room) is expected to be 28% ahead of 2019 for the January to April period. 

Performance in the first quarter of last year continued to be impacted by Covid-19 related restrictions. However, the lifting of travel curbs by  the second quarter of 2022 will allow for year-on-year comparisons to resume going forward. 

“As we look ahead, we are optimistic for the summer months buoyed by the rebound in international travel, conferences and sustained domestic tourism,” Hennessy is due to tell shareholders.

Last year’s performance “exceeded even the most optimistic of expectations”. 

Hennessy will say in a statement: “The priorities that we adopted during the pandemic – to protect our people, our culture, our business, and our cash – has paid dividends. 

“We reached several milestones during the year, including opening our 50th hotel and surpassing €500 million in hotel revenue. An increased emphasis on innovation is helping us mitigate the challenges of inflation and meet changing customer needs.”

The company is to open a Maldron hotel in Finsbury Park, London this summer followed by a property in Shoreditch in early 2024.

Hennessy is to add: “This will further enhance our portfolio of sustainable, modern four-star hotels as we continue to deliver on our strategic growth plan. 

“Construction of our new Maldron leased hotels in Brighton, Liverpool and Manchester continues, with all scheduled to be completed in Q2 2024. Maldron Hotel Croke Park, Dublin is scheduled for completion in H1 2026.

“Dalata has emerged from two difficult years and has resumed the growth and success that have characterised the business since its inception.

“We will continue this growth in our target markets in the coming years. We are committed to upholding our responsibilities to the environment, to the communities in which we operate, to our customers, employees, shareholders and to all other stakeholders. Although there are many challenges ahead, we see a very bright future for our business.”

 

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