Dalata Hotel Group PLC (LSE:DAL) revealed a faster than expected recovery in hotel markets surpassed even its own expectations.
The largest Irish hotel operator said it anticipates revenue on a like-for-like basis to be 18% ahead of pre-pandemic (2019) levels for May and June, as it provided a trading update for the second quarter of 2022.
Despite experiencing cost inflation, a recovery in Dublin was “particularly strong” on higher demand and lower supply.
Meanwhile, it expects EBITDA above €81mln for the six months ending 30 June, reflecting a “strong first half trading performance.”
Trade is also very strong in the UK and Regional Ireland where Dalata’s RevPARi for the May/June period is expected to be 7% and 27% ahead of 2019 levels respectively.
“We look forward to the balance of the year with confidence whilst being aware of the potential threats caused by the general economic outlook,” Dermot Crowley, chief executive, commented.
Dalata also revealed it completed the sale of the Clayton Crown Hotel in London to a company controlled by AG Hotels Group for a cash consideration of about £21mln.
It also said it expects to conclude the sale of the Merrion Road residential units to Irish Residential Properties REIT PLC for €42mln in the coming weeks.