Dalata Hotel Group PLC (LSE:DAL) told investors it expects to mark full-year earnings (adjusted EBITDA) above €232 million for 2024, up 4% on the previous year.
It added that it expected to offset the impact of higher wages and the UK hike in national insurance through savings on energy costs, estimated at around €2 million, and anticipated growth in RevPAR (revenue per available room).
Overall, the hotel operator reckoned its payroll costs will increase by around 5% in 2025.
Meanwhile, the Dublin-headquartered firm, which owns the Clayton and Maldron hotel brands, expanded its hotel portfolio in 2024, most recently acquiring the Radisson Blu Hotel Dublin Airport and by sealing a deal for a new Clayton Hotel in the City of London.
“We opened four new hotels in the UK this summer, we added to our growth pipeline with the acquisition of the Radisson Blu Hotel Dublin Airport and we exchanged an agreement for lease for a Clayton hotel to be developed in the heart of the City of London,” chief executive Dermot Crowley said in a statement.
“Our growth is supported by our investment in our brands, which has enhanced our guests’ experience and driven a stronger market position.”
Crowley, meanwhile, highlighted the debt refinancing earlier this year which he said has positioned the company to capitalise on opportunities that deliver accretive value.
“We will continue to balance disciplined growth, capital efficiency and financial strength with returns to shareholders reflected by our dividend payments and two share buy-back programmes,” he added.
The hotel boss also put the spotlight on Dublin airport and the thorny issue of its passenger cap – understandably, given the company will now own three of the main hotels in the vicinity of the airport.
“The ability of Dublin Airport to continue to increase passenger numbers is crucial to support further growth across the Irish economy, particularly in the hospitality and tourism sectors which are key sources of employment for the island of Ireland.
“Looking forward, I am pleased that the cap will not apply in the summer of 2025, and we are hopeful that it will be removed fully in time.
“It is expected that passenger numbers at Dublin Airport will grow by 4% in 2025, with increased access from North America, which will be very positive for hotels across the whole of Ireland.”
Crowley also noted Dalata’s aim to continue growing its portfolio, with the target of reaching 21,000 rooms by 2030 (currently it has some 12,150).