Dalata, a prominent hotel conglomerate, reported a decrease in room income during the initial part of the year due to augmented supply and a heightened VAT rate affecting the business. Nevertheless, brighter prospects were on the horizon for May and June, as demonstrated by strong corporate demand. In a market update, revenue per available room (revpar) reduced by 4% in the premier quadrimester of 2024, as attributed to fewer events. However, a change in luck was observed in May and June, with anticipated market overperformance compared to 2023 and a 3% revenue increase. The forecast for adjusted earnings prior to factoring in interest, tax, and amortisation is reportedly more than €105 million, surpassing the previous year, although a 1% fall in revpar is projected. Dalata’s shares saw an increase of 2.4% in the early market. Despite a solid Dublin market, Dalata continues to expand in Britain, with an additional 800 rooms this year and a 20% growth in its market presence. The corporation has already inaugurated the Maldron Hotel in Manchester Cathedral Quarter, and plans to extend in Liverpool, Brighton, and London. Dalata’s CEO, Dermot Crowley, expressed optimism for the forthcoming summer season, driven by growth indicators such as increasing air traffic predictions and active event schedules across various markets. He noted that, so far, no significant impact of the ongoing industrial dispute at Aer Lingus is observed on the Irish market but acknowledged the potential risk to Ireland’s wider industry if the disagreement prolongs.
