Hotel group Dalata bounces back as Covid worries recede

Hotel group Dalata saw continued momentum in its recovery in the early months of 2022, as trade "surpassed expectations" amid loosened Covid-19 restrictions.

The group, which held its annual general meeting in Dublin on Thursday, said it continued to deliver on its growth plan, with the number of rooms in operation increasing by at least 20 per cent by the end of the year compared to 2021 figures.

"2021 was another challenging year for Dalata and the wider hospitality industry. However, I am pleased to say that we have moved firmly into recovery with strong trading post-reopening across all markets," said Dalata chairman John Hennessy.

“The focus on our people has always been central in how we operate at Dalata and the actions taken throughout the pandemic to maintain and continue to develop our core teams have been key factors in our ability to recover.”

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The company said last month that revenue per available room (revpar), a standard industry metric for measuring the topline performance of hotels, was approaching pre-pandemic levels.

Mr Hennessy said it is expected to exceed 2019 levels for March and April, at 109 per cent, with the metric ahead of pre-pandemic levels in Dalata's Dublin, regional Ireland and UK businesses in April.

However, inflation is constraining optimism in the sector.

“As we look ahead we are optimistic for the summer months given increased flight capacities and a strong events calendar, but remain cautious about the impact of inflation,” said Mr Hennessy. “We continue to proactively manage the business in response to the ongoing inflationary pressures. Our decentralised model supported by our central teams, our dynamic pricing strategies and our culture of cost discipline are helping us respond to the cost increases we are seeing, particularly in the areas of labour, energy and food.”

Dalata has opened a number of new hotels in Ireland and Britain in recent months, and has also secured its first hotel in continental Europe.

The hotel group on Thursday officially opened its Samuel Hotel in Dublin, a €39 million four-star hotel overlooking the river Liffey in the city's docklands area.

Dalata has 49 hotels in its portfolio, including 29 owned hotels and 17 leased. That comprises more than 10,000 rooms, and includes two of the largest hotel brands in Ireland, the Clayton and the Maldron hotels.

The Irish Tourism Industry Confederation said this week that it expects inbound tourism to reach 67 per cent of 2019 levels this year, up from its forecast of 60 per cent earlier this year. Travel to and from Ireland hit 65 per cent of pre-pandemic levels in February. – Additional reporting: Reuters