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Dalata Hotel Group has announced a strategic review to optimise its capital opportunities and enhance value for shareholders, which could include a potential sale of the group.
It comes as the hotel group reported that revenues rose by 7.3% to €652.2m (£546.6m) in the year ended 31 December 2024, as like-for-like RevPAR inched up 1% to €115.7m (£96.9m) during the period.
The group revealed that trading was strongest in the second half overall, while the Dublin portfolio outperformed its wider markets in 2024.
In addition, adjusted EBITDA rose 5.1% to €234.5m (£196.5m) with the support of additions to Dalata’s portfolio throughout 2023 and 2024.
Despite the rise in adjusted EBITDA, profit after tax fell by 12.7% to €78.7m (£65.9m) due to accounting charges from the refinancing and portfolio growth.
As of December 2024, Dalata had hotel assets of €1.7bn (£1.4bn) – 73% of which was located in Dublin and London.
The group has set a target to grow by 80% to 21,000 rooms by the end of the decade as part of its ‘2030 Vision’. Dalata said it aims to achieve this through a “disciplined” investment strategy, acquisitions of existing hotels, and a mix of leasehold and freehold ownership.
Since October 2024, when the target was first announced, the Irish hotel group has increased its pipeline by 910 rooms.
Dermot Crowley,CEO of Dalata Hotel Group, said: “Looking ahead, I am confident about Dalata’s prospects. We are a modern, international, outward looking, and innovative hotel company. We have a clear strategy, underpinned by our 2030 Vision, and a team of exceptional people with an unwavering focus on delivering on our ambitious growth targets.
“A thorough strategic review will enable us to assess available options to increase our access to capital and enhance shareholder value. During the process we will remain focused on the underlying business – continuing to take care of our people and continuing to meet the expectations of our customers.”
He added: “We have exciting initiatives in place to further enhance our revenues and deliver further productivity – our teams will remain focused on delivering on the objectives that we have set ourselves for 2025.”
