Dalata reports strong performance amidst acquisitions

Dalata Hotel Group, the largest hotel operator in Ireland, announced 10 March 2015 its full year results for the year ended 31 December 2014.

Financial Highlights

• Successful completion of IPO in March 2014 raising €256 million net of costs.
• Strong operating performance with revenue up 30.4% in 2014.
• EBITDA of €6.1 million, up 14.2% in 2014.
• EBITDA (excluding impacts of acquisitions) rose by 54% from €5.34 million in 2013 to €8.23 million in 2014.

Operational Highlights

• Group revpar increased by 15.7% on a ‘like for like’ basis primarily due to a 13.4% increase in average room rate.
• Completed the acquisition of three hotels for a total consideration of €35 million.
• Invested €3.5 million in ongoing capital refurbishment of leased hotels.
• Proceeds of IPO invested 12 months ahead of schedule.

Post Year End Highlights

• Since year end, completed the transformational acquisition of nine Moran Bewley hotels, Clayton Hotel Galway, Whites Hotel Wexford and Pillo Hotel Galway for a total consideration of €495 million.
• New Clayton brand being rolled out to thirteen hotels over the next six months.
• Announcing today the acquisition of the Holiday Inn Hotel in Belfast for £18.5 million (€25.7 million)
• Raised a further €48.6 million net of costs to part fund the hotel acquisitions.
• Negotiated a term loan facility of €282 million to part fund acquisitions.

Results Summary

Revenue increased by 30.4% in 2014 while EBITDA grew by 14.2%. EBITDA was reduced by the one off impact of fees and stamp duty associated with the Group’s acquisition activity during the year. EBITDA (excluding impact of acquisitions) increased by 54%.

Pat McCann, CEO commented:

“The business has performed very strongly in 2014. All our hotels showed revenue growth which was converted solidly to the bottom line. We have benefited from the continued strong growth of the Dublin market and the start of recovery in the cities and towns outside of Dublin. Increased market share and general market recovery resulted in a very strong year for Maldron Cardiff. The addition of Maldron Hotel Tallaght and Maldron Hotel Dublin Airport also contributed positively to the growth in EBITDA.

Following our IPO in March 2014, we have invested the full proceeds 12 months ahead of schedule. We completed the purchase of Maldron Hotel Pearse Street (Dublin), Maldron Hotel Parnell Square (Dublin) and Maldron Hotel Derry in 2014. Since year end, we completed the purchase of Clayton Hotel (Galway), Whites Hotel (Wexford) and Pillo Hotel (Galway). We also completed the transformational Moran Bewleys deal which gave us a further nine hotels in Ireland and the UK. Today, we announce the acquisition of the Holiday Inn Hotel in Belfast. We are very excited by the opportunities presented by the portfolio we have assembled and the process of integrating the new hotels into the Dalata structure is well underway.

“The outlook is encouraging for the markets we operate within. However, recovery in provincial Ireland is still fragile and I welcome the continued support of the Government for the tourist industry. This support has contributed to increased visitor numbers and the creation of 30,000 new jobs.”

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