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Dalata has reported that group RevPAR trailed 4% behind 2023 levels in the first six months of 2023, but has welcomed improved trading as it enters the busier months. It comes as a “quieter” trading environment in the early months of the year was driven by supply dynamics in key markets and a lower number of events.
Nonetheless, in its latest trading update, the group said trading has improved as it entered the typically busier period for hoteliers.
In light of this, all four regions are expected to outperform 2023 in May and June, with group RevPAR set to be 3% ahead of 2023 levels. In addition, it said that corporate demand remains strong and ahead of last year.
In Dublin specifically, demand remains strong, however according to the group, the combination of increased supply and the increase in the VAT rate impacted RevPAR in the first six months of the year.
For the six months ending 30 June 2024, adjusted EBITDA is expected to be in excess of €105m (£89m), surpassing 2023 levels, with RevPAR marginally below 2023 levels (-1%).
In its latest trading update, Dalata said it will continue to proactively respond to inflationary pressures, particularly by increasing rates of pay.
It added that it also plans to increase its UK footprint by 20% in 2024, equating to 838 new rooms.
Dermot Crowley, CEO, Dalata said: “As we look ahead, we are positive in our outlook for the summer period supported by future demand indicators across our markets, including growing air traffic forecasts and active event calendars.
“Within the Irish market, we are not yet seeing any material impact of industrial action at Aer Lingus, though any prolonged dispute presents risk to the wider industry in Ireland. The refresh of our consumer brands, Maldron and Clayton, has been well received and we have launched a new customer experience training programme across our hotels to bring our signature brand of customer experience, the Heart of Hospitality, to all guests.”
He added: “We continue to execute on our UK growth strategy and will increase our UK footprint by 20% in 2024 equating to 838 new rooms. We opened the new Maldron Hotel Manchester Cathedral Quarter in May, and we will welcome our first guests to our Maldron Hotels in Liverpool and Brighton followed by the opening of Maldron Hotel Shoreditch, London over the next two months.
“We remain focused on delivering strategic growth supported by our strong balance sheet, cash generative business and skilled teams. I am excited by the quantity and quality of opportunities we are assessing, as we continue to build on our ambitious growth strategy.”
