Ireland’s largest hotel operator Dalata Hotel Group said today that hotel room revenue (RevPAR) exceeded pre-pandemic levels for the first time as it expressed optimism today for summer trading.
Dalata reported in early March that RevPAR, a key measure of a hotel’s top-line performance, was approaching pre-pandemic levels.
He said today that for March and April RevPAR is expected to be 109% of the corresponding period of 2019.
Several Dalata hotel rooms in Ireland are currently being used for other purposes, including hosting Ukrainian refugees, the hotel group added in a business update.
Dalata also operates hotels under its Maldron and Clayton brands in the UK and is set to increase its number of rooms by at least 20% through planned expansion.
But he said today that he also remained cautious about the impact of inflation on demand.
In a trading update ahead of its AGM in Dublin today, Dalata said it had moved “steadily” towards recovery with a strong reopening of trading posts in all markets after another challenging year in 2021.
It said that the actions taken during the Covid pandemic to maintain and continue to develop its core teams have been key factors in its ability to recover.
“Looking ahead, we are optimistic for the summer months given increased flight capabilities and a strong event calendar, but remain cautious about the impact of inflation,” Dalata President John Hennessy said in the update. commercial today.
John Hennessy said the company continues to deliver on its growth plan and will increase the number of rooms in operation by at least 20% by the end of this year, compared to the end of 2021.
It has opened four new hotels so far this year and secured its first hotel in continental Europe with Hotel Nikko in Düsseldorf.
The company said its two new hotels in Manchester city center, which opened in January and February, are performing above expectations, while it opened its first hotel in Bristol last month.
Clayton Hotel Glasgow City and Maldron Hotel Merrion Road in Dublin are expected to open in the coming months, the company added.
Dalata also officially opened its new Samuel Hotel in Dublin Docklands today, which it said reinforces the importance of the Dublin market to the company.
Overlooking the River Liffey, the €39 million four-star Samuel Hotel is located in Dublin’s Docklands area and is located close to major event venues such as the Dublin Convention Centre, Croke Park, The 3 Arena and The Bord Gas Energy Theatre.
The hotel has 204 air-conditioned rooms, excellent facilities for meetings and events, cafeteria, bar and restaurant.
Dalata said Dublin remains a key city for the group and its portfolio reflects continued confidence in the market where it now has more than 4,400 rooms ahead of Maldron Merrion Road opening later this year.
Dalata also operates seven Maldron Hotels, seven Clayton Hotels, the Belvedere Hotel, the No 7 Hotel and the Gibson Hotel in Dublin, providing direct employment to 2,300 people in the city.
Dermot Crowley, CEO of Dalata Hotel Group, said inbound conferences, events, business travel and leisure tourism are part of the lifeblood of the local economy and The Samuel will serve each of these segments as it expands. Dublin market to bounce back so strongly following the lifting of pandemic-related restrictions.
“While growing our UK portfolio remains our goal, Dublin is an important market for us and we will continue to look for strategic opportunities in the city,” he added.
Ireland’s tourism sector has been hit in the last two years by the Covid-19 blow to global travel and some of the strictest travel restrictions in the European Union.
The Confederation of the Irish Tourism Industry said this week that it expects inbound tourism to reach 67% of 2019 levels this year, up from its forecast of 60% earlier this year. Travel to and from Ireland reached 65% of pre-pandemic levels in February.
Shares of the company rose today in Dublin trading.