Pandemic fails to dampen Dalata ambitions
Irish hotel group Dalata is pushing on with its development plans despite a dramatic slowdown in business caused by the coronavirus pandemic.
The group said that operating profits for the year ended 31 December were likely to be ahead of expectations and that despite the challenging market it remained in a strong financial position with €293m (£264m) of cash available.
Lockdowns across the UK and in Ireland have hit occupancy significantly, said the group, but it saw some demand from construction and manufacturing workers in the latest lockdown.
Irish hotel group Dalata is pushing on with its development plans despite a dramatic slowdown in business caused by the coronavirus pandemic.
The group said that operating profits for the year ended 31 December were likely to be ahead of expectations and that despite the challenging market it remained in a strong financial position with €293m (£264m) of cash available.
Lockdowns across the UK and in Ireland have hit occupancy significantly, said the group, but it saw some demand from construction and manufacturing workers in the latest lockdown.
Following the first lockdown, Dalata recorded Q3 occupancy rates of 26% in Dublin, 60% in regional Ireland and 36% in the UK. Those numbers are expected to fall for Q4 following the second lockdown, to 17% in Dublin, 28% in regional Ireland and 21% in the UK.
Despite that, Dalata said it was continuing to progress the development pipeline of almost 3,250 bedrooms across Ireland and the UK.
Its current pipeline includes hotels in Dublin, Glasgow, Bristol, Manchester, Brighton, Liverpool, Birmingham and Shoreditch in London.
Dermot Crowley, deputy chief executive, said: “2020 has been a very challenging year for people and communities across the world. The impact on the hospitality industry has been acute. In Dalata, our people have suffered significant losses of income through temporary layoffs, reduced working hours and salary cuts. However, we remain resilient and united in dealing with the ongoing impact of Covid-19.
“We have an exciting pipeline of hotels to open over the next three years. Despite the devastating impact of Covid-19, we announced three new hotels during 2020 in Dublin, Brighton and Manchester. We are working with developers and site owners around the UK on potential new developments. The positive impact of the recent equity placing on our balance sheet together with the way in which we have met our rental obligations throughout the pandemic has enhanced our reputation as a strong reliable covenant. We are confident that this will assist us greatly in building our pipeline further in 2021.”
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