Dalata, the largest hotel group in Ireland, has disclosed plans for a €30 million share buyback and proposed an interim dividend payment of 4.1 cents a share, despite observing a relatively cautious consumer behaviour in recent times, according to the CEO. The announcement was made in the interim results, released on Wednesday, where the Dublin-based group disclosed only a minimal growth of 1% in revenue per available room (RevPar) – a crucial performance indicator in the hotel business – which grew to €110.77 in the six-month period ending June.
Despite a minor reduction in room occupancy rates from 78.4% in the first half of 2023 to 77.6% this year, average room rates increased by 2% to €142.67. Dermot Crowley, Dalata’s CEO, acknowledged the challenges that the hotel sector witnessed in the past year as RevPar dropped 5.4% across the market in the seven-month period to end of July. This slump coincided with a 9% rise in the count of rooms available in Dublin city and the normalisation of the VAT rate for the hospitality industry in September 2024.
Despite this unfavourable environment, Mr Crowley expressed satisfaction as Dalata managed to outdo the Dublin market with a smaller RevPar drop of just 4.6% over that time. He also mentioned a 5% yearly increase in room revenues for August in Dublin, which was driven by a robust event schedule. More details are expected in the near future.