Dalata announces 80% profit increase and Manchester hotel plans
Dalata Hotel Group, Ireland's largest hotel operator, has announced an 80% profit increase in its results for the six months to 30 June 2017, as well as plans for a new hotel in Manchester.
Pre-tax profit increased to €32.7m (£30.1m), while adjusted EBITDA of was up 27% to €44.9m (£41.3m), and revenue grew 24.4% to €161.8m (£148.8m).
Group revenue per available room (revpar) was up 9.8% to €82.27 (£75.62).
Plans for an agreement to lease a new 300-bedroom Clayton hotel in the centre of Manchester on Portland Street with Property Alliance Group were also revealed. the hotel is expected to open in mid-2020.
Although the group expressed concern about the uncertainty of geo-political events and significant fluctuations in the value of sterling, it noted that the UK hotel market appears to be benefiting from the weaker pound.
Pat McCann, Dalata Group chief executive, said: "I am very pleased with the opportunity that we have secured for a new 300 room Clayton hotel in the centre of Manchester. The location at Portland Street is ideal and Manchester is one of the most attractive cities in the UK to operate a hotel.
"Our UK portfolio has had a very strong performance to date in 2017 and we significantly outperformed the market in the cities in which we operate.
"The second half of 2017 will be a busy period for the group. We will continue to explore the exciting opportunities which exist in the UK and Irish hotels markets and will continue to work on our development projects and extensions."
Dalata has a current portfolio of 38 hotels, mainly operated under the Clayton and Maldron brands. Of these, 26 are owned by Dalata, nine operated under lease agreements, and three operated under management agreements.
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