Dalata Hotel Group has reported an operating profit of €155m on turnover of €558m for 2022 and promised to reintroduce dividend payments later this year.

Net profit for the period was €97m compared with a loss of €6m in 2021.

Earnings per share came in at 43 cents, about the same as in 2019. The share currently trades at the 420c level, for a trailing p/e of 9.8.

Dalata said that adjusted EBITDA was €183m, a 13% improvement on pre-Covid 2019. Free cashflow of €127m was a 26% improvement on 2019.

Total liabilities expanded from €933m to €1,056m through 2022. Year-end current assets stood at €129m, of which €91m was cash.

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Dalata said that c.1,900 rooms were added in 2022 across six leased hotels and one owned hotel, bringing room count to 10,950, which is 19% ahead of the December 2019 figure. An additional 1,130 rooms are in the pipeline.

UK rooms represented 37% of the portfolio in December 2022 and this year Dalata has completed the £44m purchase of new 192-bedroom Maldron Hotel Finsbury Park in London, which is expected to open in summer 2023.

Four UK hotels currently under construction in London, Brighton, Liverpool, and Manchester are scheduled to open in 2024.

The company calculates that balance sheet net asset value per share is €5.63.

Dalata said it is “cautiously optimistic” on its outlook for 2023. The company’s ‘like for like’ January/February 2023 average room revenue is expected to be 17% ahead of 2019 levels in Dublin, 54% in regional Ireland and 27% in the UK.

“Engagement with corporate customers and tour operators on demand and pricing has been positive,” the company said.

“There are also positive demand indicators in Ireland and the UK, including on the resumption of more normalised conference and events business levels and the continuing return of international travellers, in particular from the US market.

“The board plans to re-introduce a progressive dividend policy, commencing with an interim dividend at H1 2023 results.”

Group CEO Dermot Crowley said that when he assumed the role of CEO in November 2021, he positioned people, customer focus, growth, sustainability and innovation at the core of his strategic priorities.

“We welcome the supports received in 2022 from the Irish and UK governments in assisting the hospitality sector in its recovery from the pandemic and responding to inflationary pressures impacting businesses and consumers,” Crowley added.

“These supports recognise the key role the hospitality sector plays in the economy and its importance to economic growth and job creation spread throughout the cities and regions in the countries in which we operate.

“Furthermore, we welcome the recent extension by the Irish government of the reduced VAT rate to support the hospitality sector.

“We remain confident in our ability to outperform with our modern hotel portfolio, our focus on sustainability, our decentralised operating model and our track record of providing a superior guest experience,” Crowley said.

Image: Dermot Crowley CEO and Carol Phelan CFO Dalata Hotel Group