Dalata Hotel Group PLC (LSE:DAL) swung to a profit in the first half of the year as bookings were boosted due to "continued strong leisure demand" and an active events calendar.
Ireland's largest hotel operator reported 68.0% occupancy for the six months ending June 30, 2022, up from 19.9% a year earlier but still down on 80.2% two years ago in pre-pandemic 2019.
With inflation, average room rates were well above pre-pandemic levels at €126.89 during the six-month period for the Maldron and Clayton hotels owner, up from €81.99 in 2021 and €110.30 in 2019.
Revenues of €220.2mln were 5.5 times higher than the previous year and €201.9mln in 2019, while a profit before tax of €52mln compared to a loss of €37.8mln in 2021 and a profit of €37.8mln in 2019.
The hotel group said demand "has largely returned" across all segments, especially around event dates and weekends.
As most US multinational corporates have not yet returned to pre-pandemic travel levels, corporate business returned skewed towards non-international corporates, said the company.
"We are cautiously optimistic on trade for the remainder of the year," the firm said, adding supply remains low in Ireland due to the use of rooms for government purposes, including sheltering refugees fleeing Ukraine's war.
While it is unknown when these rooms will return to the market, Dalata is committing to use up to 5% of its rooms for emergency accommodation until end-2022.
During year to date, six hotels and 1,600 rooms have been added across four cities, and Crowley said with the signing of the lease for Hotel Nikko Dusseldorf, the group has taken its first exciting step into continental Europe.
Shares were trading 1.03% higher at 298.55p in London.