Over the first six months over this year the firm’s property, plant and equipment asset portfolio grew 11% from €1.4 billion to €1.6 billion, 5% of which relates to revaluation uplift on existing properties.
Pipeline prospects
Dalata has a pipeline of 1,141 rooms, encompassing four new UK hotels, one Dublin hotel, and two extensions to existing sites.Â
One of the London additions will be Maldron Hotel Shoreditch, a 157 room property to be completed in Q2 2024 which will bring the group’s UK capital room portfolio to 876.
Three further leased hotels comprising 677 rooms are under construction in key UK cities – Maldron Hotel Liverpool, Maldron Hotel Brighton, and Maldron Hotel Cathedral Quarter Manchester – all expected to open in Q2 2024.
Expansion expenditure
In H1 2023, Dalata secured two London owned hotels, adding 280 rooms to its UK portfolio for consideration of £97.7 million (€112.3 million). Both hotels commenced trading under Dalata in July 2023, growing its London room portfolio by 64%.
As at 30 June 2023, the group has future capital expenditure commitments totalling €15.2 million, of which €8.1 million relates to Maldron Hotel Shoreditch in London, €1.7 million relates to other developments in the committed pipeline at 30 June 2023 and the remaining €5.4 million relates to future capital expenditure commitments at the company’s existing hotels.
Current snapshot
Dalata was founded in August 2007 and listed as a plc in March 2014. The company is Ireland’s largest hotel operator, with a growing presence in the UK and continental Europe.
The group’s portfolio comprises 52 three and four-star hotels with 11,239 rooms, comprising 31 owned hotels, 18 leased hotels and three management contracts. Dalata successfully operates Ireland’s two largest hotel brands, Clayton Hotels and Maldron Hotels.
Acquisition targets
The firm feels it has an experienced and skilled acquisitions and development team with a track record of securing opportunities in competitive markets, targeting prime city locations with a strong mix of corporate and leisure business, principally in the UK and continental Europe.
Following a successful start to 2023, the group is optimistic for the remainder of the year and its future growth prospects.
Firepower scope
Dermot Crowley, Dalata Hotel Group CEO, commented: “Our performance year to date has been exceptional, thanks to all of our teams throughout the business, whose commitment and dedication are evident in the results and in the continuous delivery of our ambitious growth strategy.
“We have continued to expand our asset portfolio with the two recent high-quality acquisitions in London which are both performing well. This speaks to the strength of our balance sheet and our development team’s ability to identify and deliver additional rooms in times of market volatility and uncertainty. Since IPO, we have delivered €0.5 billion in property value growth on our developments and acquisitions.
“As we open our current pipeline and secure new opportunities, I am confident that we will continue to create further value through the combined strength of our development and operating teams supported by our investment capacity. Our firepower potential provides scope to grow our property assets by €750 million in the medium term beyond our currently announced pipeline.”
Insights guide decisions
He added: “Our ongoing investment in consumer research ensures that customer insights are continuously used to inform and guide decisions, from hotel designs to the food and beverage offerings we serve our customers.
“I look forward to the remainder of the year with confidence in our ability to continue to create opportunities, to grow and to create value for our shareholders whilst ensuring that our hotels continue to provide an excellent customer experience and a great place to work.”
