Dalata Hotels profits jump as London sites outperform

 
Alys Key
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The Clayton Hotel in Chiswick (Source: Clayton Hotel Chiswick/Dalata)

Shares in Dalata hotels climbed more than seven per cent today after pre-tax profits leapt 80 per cent.

The Irish hotelier owns, leases and manages sites across the UK and Ireland. The Clayton Hotel in Chiswick and the Clayton Crown Hotel in Cricklewood are among the company's owned properties.

Read more: As London tourism booms, Sadiq Khan sets a vision for sustained growth

The figures

Revenue increased 24.4 per cent to €161.8m (£148.1m).

Pre-tax profits leapt 80 per cent to €32.7m while underlying earnings reached €44.9m.

Revenue per available room (RevPAR) across the whole group was up 9.8 per cent to €82.27.

Dalata said its London hotels and regional UK hotels all achieved RevPAR above the market average.

Why it's interesting

Once again, the results show that hoteliers are experiencing a boom in visits to London, despite terror attacks in March and June.

The bounce contrasts with the effects felt by cities such as Brussels and Paris when similar incidents occurred

Read more: London hotels perform well despite terror attacks

On the Irish side of the business, Dalata said that fewer UK visitors had come to Dublin in the first six months of the year due to the weaker pound. But this was offset by American and European tourists. A new hotel at Dublin Airport is currently under construction.

What the company said

"Our UK portfolio has had a very strong performance to date in 2017 and we significantly outperformed the market in the cities in which we operate," said chief executive Pat McCann.

"We are monitoring the reduction in UK visitors to Ireland since the Brexit vote in 2016. To date, overall visitor numbers remain robust due to growth in other markets. Our strategy of retaining substantial volumes of corporate and tour group business in our hotels makes us less reliant on the UK transient visitor."

Read more: Hilton Hotels backs UK tourism with plans for more than 30 British hotels

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