Dalata EBITDA rises 22% in FY23

Dalata Hotel Group has recorded a 22% increase in EBITDA to €223.1 (£191m) following an 18% rise in revenues to €607.7m (£519.8m) for the year ended 31 December 2023.

Its like-for-like 2023 RevPAR was also up 11% to €116.69 (£99.9m), with an occupancy of 81.0% in 2023.

However its profit before tax fell by 4% to €105.5 (£90.3m) due to reversal of previous period revaluation losses post Covid in 2022.

In FY23, the group invested £97.7m (€112.3m) in two London assets, Maldron Hotel Finsbury Park (191 rooms) and Clayton Hotel London Wall (89 rooms), which began trading under Dalata ownership during the year.

It also invested £12.5m (€14.4m) in building conversion opportunity in Edinburgh with planning lodged for office conversion to 167-bedroom hotel (14 additional rooms added through design post-acquisition, subject to planning)

Additionally, the group signed an agreement for lease with the landlord of Clayton Hotel Manchester Airport to extend the current lease term from the remaining 61 years to 200 years in total.

The new lease is conditional on the receipt of a grant of planning for a 216-bedroom extension to be developed by Dalata.

The estimated investment of £40m also provides for the refurbishment of the ground floor and a portion of the bedrooms at the existing hotel, as well as the upgrade to plant and machinery to improve the sustainability of the hotel.

The project is targeted for completion in H1 2027. The existing hotel will continue to trade through the development.

Looking ahead, the group expects UK rooms to exceed 5,000 by the end of 2024 (+28% since end of 2022) with the opening of centrally located hotels in London, Liverpool, Brighton and Manchester (together 834 rooms).

The group said it also remains attentive to the macro-economic backdrop and geopolitical environment for events which could impact the business.