Dalata hotels: payroll costs to rise 5% with national insurance increase

Dalata Hotel Group has said increases to national insurance and minimum wage rates will increase its payroll costs by around 5% in 2025.

The company is Ireland’s largest hotel group with a growing presence in the UK, where it operates just over 20 hotels.

Dalata said it planned to offset rising payroll and other costs with a €2m reduction in its contracted energy prices and ongoing efficiency plans.

Other UK hospitality businesses have warned they will have to raise prices and cut back on staffing and investment due to the tax rise next April.

Dalata, which owns the Clayton and Maldron hotel brands, said “robust” trading meant it would it deliver adjusted EBITDA of over €232m for the year, a 4% rise on 2023.

Group RevPAR is expected to be c.3.5% ahead of last year for November / December, with strong performances in Dublin and the UK, and 1% up for the full year.

Dalata is aiming to increase the number of bedrooms in its portfolio from 12,000 to 21,000 and become the largest four-star hotel operator in all major cities in Ireland and regional areas of the UK by 2030.

The group opened four new UK hotels this summer and signed the lease to develop a 154-room Clayton hotel in the Tower 42 Estate in the City of London.

Dermot Crowley, chief executive of Dalata, said: “It is always challenging when external input costs are rising; however, I am delighted with how everyone at Dalata has responded to the challenge.”

The company secured a €600m debt refinancing package in 2024, which Crowley said would allow it to “capitalise on any opportunities”.

“I look forward to 2025 with optimism. I am very happy with the early trading performance of the four hotels we opened in 2024 and I look forward to Dalata benefitting from their full year impact next year,” said Crowley.