Dalata announces strong first-year profits

The hotel group has expanded rapidly in Ireland

Clarion Hotel, Sligo, bought, Dalata Hotel Group, purchased, Crowe Horwath

The Clarion Hotel, Sligo | Image: Savills

Hotels group Dalata has announced pre-tax profits of €28.5m for the year to the end of December, its first full year as a publicly-quoted company.

Group revenues increased by 185% during the period to €226m reflecting the group’s massive expansion programme over the past year.

During 2015, it spent €560m on hotel purchases in Ireland and the UK, bringing the number of owned or leased hotel rooms under its management to almost 5,500.

Revenues per available room rose by more than 21% during 2015 and average room rates were 14% higher while the Group’s balance sheet benefited from a property revaluation uplift of close to €50m.

The group says trading has been better than expected in the first couple of months of 2016 in Ireland and as anticipated in the UK.

Dalata Chief Executive, Pat McCann spoke to Newstalk, he commented that he cannot see any reason why a new government would consider abandoning the hospitality sector's special 9% VAT rate.

He also said that the group has not made an offer for Dublin's Gresham hotel, or decided if it will make an offer in the future.