Dalata said the sudden onset of Covid-19 has had a very “significant impact” on its business. For the first quarter of 2020, RevPAR on a ‘like for like’ basis decreased by 24.3% at its Dublin hotels, 14% at its regional Ireland hotels and 18.6% at its UK hotels.
Additionally, adjusted EBITDA for the first quarter of 2020 was €17.7m (£15.4m). Dalata said these figures include two months of normal trading before the effects of the global pandemic were first felt in its business.
Dalata added that its results for subsequent periods will reflect the fact that currently its hotels are either temporarily closed or operating at significantly reduced capacities in line with guidelines issued by the Irish and UK Governments.
Despite this, the group said that it has implemented several measures to mitigate the financial consequences of the impact of Covid-19 and to maintain “strong liquidity”.
Last week it announced that it has agreed the sale and lease back of Clayton Hotel Charlemont in Dublin to Deka Immobilien for a consideration of €65m (£56m)
Dalata said this transaction, which was completed on 24 April, strengthened its “considerable cash resources” during the current Covid-19 crisis and will ensure that financially it is in a “strong position to trade through the crisis”.
John Hennessy, chairman of Dalata, is expected to make the following statement at the group’s AGM later today: “In 2019 we delivered another strong financial performance in terms of earnings growth and cash generation and ended the year with a very strong balance sheet.
“We also demonstrated our resilience and ability to overcome challenges, which is very important now as we face the very considerable challenges posed by the Covid-19 pandemic.”