NEWS & EVENTS
Ambitious teams delivering growth - DALATA HOTEL GROUP PLC -
Dalata Hotel Group plc (‘ Dalata ’ or the ‘ Group ’), the largest hotel operator in Ireland , with a growing presence in the United Kingdom and continental Europe , has announced its results for the six month period ended 30 June 2022 .
Trade continues to perform strongly with ‘ like for like ’ Group ARR1 of € 151 and Group occupancy1 of 89 % for July / August . ‘ Like for like ’ Group RevPAR1 is expected to be € 134 in July / August , 25 % ahead of 2019 levels . Dalata ’ s ‘ like for like ’ RevPAR1 for July / August is expected to be 21 % ahead of 2019 levels in Dublin , 36 % in Regional Ireland and 15 % in the UK .
Bookings are driven by continued strong leisure demand and an active events calendar . As is normal for this time of year , corporate travel decreases during the summer months but we expect this to increase from September . We are cautiously optimistic on trade for the remainder of the year .
Supply in Ireland remains reduced as a result of rooms being utilised for government related business including the provision of emergency accommodation to refugees fleeing the war in Ukraine . At present , it is not known when these rooms will return to the market . Dalata has committed up to 5 % of its rooms in the Republic of Ireland to be used as emergency accommodation until the end of 2022 . half of 2022 . Based on its expected consumption and price estimates as of mid-August , the Group expects to use 27 million kWh of electricity at c . 50 cents per kWh and 37 million kWh of gas at c . 20 cents per kWh in H2 2022 , equating to an estimated increase in gas and electricity costs from € 13 million for the first six-months of 2022 to € 21 million for the second six-months of 2022 . These prices reflect the commodity price and regulator / pass through charges which move moderately once a year .
We continue to progress our committed pipeline of 1,125 rooms that are expected to open between 2023 and 2025 .
We are actively looking at new opportunities across all our regions , including continental Europe .
Dermot Crowley , Dalata Hotel Group CEO , commented : I am personally delighted with the progress we have made since the start of 2022 . The achievements are the result of the expertise and commitment of the teams that operate throughout Dalata . I want to personally thank the entire team of people within Dalata for delivering six additional hotels and an excellent trading recovery . Despite the macroeconomic challenges , we look forward with optimism and enthusiasm to the months and years ahead .”
The trading environment remains challenging with global inflationary cost pressures around food supply , payroll and particularly energy . Although we have not seen any impact on demand to date , inflationary costs may impact consumer discretionary spending in the future . In the face of these challenges , Dalata continues to focus on its sales and dynamic pricing strategies to optimise revenue and apply its normal cost disciplines including driving new initiatives to reduce costs . The Group continues to see significant benefit from its previous investment in systems to manage labour costs , procurement and food and beverage sales and margins .
Post period end , the Group entered into forward agreements for gas and electricity . The Group has either purchased or locked in prices for approximately 75 % of its consumption for electricity and 65 % of its consumption for gas for the second www . wybostonlakes . co . uk
- 72 -