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Dalata Hotel Group expects to deliver adjusted EBITDA in excess of €232m (£191.5m) for the year, spelling a 4% rise year-on-year, following “robust” trading coupled with the positive impact of recent hotel additions in 2023 and 2024.
In addition, the hotel group expects RevPAR to be around 3.5% ahead of last year for November and December, having had a particularly strong performance in Dublin and the UK.
For the full year, group RevPAR is expected to be 1% ahead of 2023.
Following the autumn budget announcement, Dalata now estimates that the increased minimum wage rates in Ireland and the UK will push hotel payroll by roughly 5% in 2025 on a like-for-like basis.
However, the group maintains that it will continue to respond “proactively” to cost pressures, as it plans to cover these additional costs with the benefit of a €2m (£1.6m) reduction in contracted energy pricing, the ongoing rollout of further efficiency and innovation initiatives, and through RevPAR growth across its markets.
Dalata said it will also benefit from the full-year impact of hotels opened in 2024 starting from next year, as well as the addition of Radisson Blu Hotel Dublin Airport.
Dermot Crowley, CEO of Dalata, said: “I look forward to 2025 with optimism. I am very happy with the early trading performance of the four hotels we opened in 2024, and I look forward to Dalata benefitting from their full year impact next year.
“The addition of the Radisson Blu Hotel at Dublin Airport (subject to CCPC approval) is very exciting and will positively impact on 2025 performance. Our focus is on delivering our exciting 2030 Vision growth strategy to increase our footprint to 21,000 bedrooms.”
