Dalata says it expects adjusted earnings for the first half of 2024 to surpass the year prior despite a quieter trading environment.
The hotel operator said adjusted Ebitda for the six months ending June 30 is expected to be in excess of €105 million, a slight increase from 2023’s €103.4 million. This was as revpar came in below 2023 levels driven by supply dynamics in key markets and a lower number of events.
However, Dalata notes an improved trading environment in May and June with all four of the group’s regions outperforming 2023 levels during the two-month period and corporate demand remaining strong and ahead of the year prior.
What they said
Dermot Crowley, CEO of Dalata said: “The Group’s revpar outperformed 2023 levels for May/June, which is reflected across each of our four regions. This is pleasing following what had been a more challenging start to 2024 revpar performance for the markets in which we operate, compared to 2023. In Dublin specifically, demand remains strong, however, the combination of increased supply and the increase in the VAT rate has impacted revapr in the first six months of the year.
"As we look ahead, we are positive in our outlook for the summer period supported by future demand indicators across our markets, including growing air traffic forecasts and active event calendars. We continue to execute on our UK growth strategy and will increase our UK footprint by 20 per cent in 2024 equating to 838 new rooms.”