Shares in Dalata Hotel Group – the owner of Clayton and Maldron hotels – soared in Dublin trade today after it said it has put itself on the market.
It has announced a strategic review of the business today and said it is exploring all options, including its potential sale.
Dalata has appointed Rothschild & Co as financial adviser in connection with its strategic review.
The group confirmed today that it is not in discussions with, or has had an approach from, any potential offeror at this time.
Dalata, the biggest hotel operator in Ireland, operates 55 hotels in “excellent” central locations.
Its portfolio includes 30 owned hotels which are valued at €1.7 billion including assets under construction, 73% of which relates to hotels in Dublin and London.
It also operates 22 leased hotels, the majority of which are on long term institutional lease agreements with a weighted average lease length of 29 years, while it also operates three managed hotels.
Dalata today reported record revenue for 2024 of €652.2m, up 7.3% on 2023, while its full-year adjusted core profit was up 5.1% at €234.5m, supported by additions to its portfolio over the past two years.
But its profit after tax for the year was down 12.7% to €78.7m from €90.2m in 2023.
It said its like for like revenue per available room (RevPAR) of €115.78 was up 1% on 2023. It noted that trading was stronger in the second half of the year, while the Dublin portfolio outperformed the wider market for 2024.
Dermot Crowley, Dalata’s chief executive, said the company’s 2030 Vision strategy sets an exciting goal to have 21,000 rooms either operational or under construction by 2030.
“We have an excellent management platform in place to deliver this strategy but access to capital is essential to achieve our vision. A thorough strategic review will enable us to assess available options to increase our access to capital and enhance shareholder value,” he said.
“During the process we will remain focused on the underlying business – continuing to take care of our people and continuing to meet the expectations of our customers. We have exciting initiatives in place to enhance further our revenues and deliver further productivity – our teams will remain focused on delivering on the objectives that we have set ourselves for 2025,” he added.
John Hennessy, Dalata Chairman, said the Board is excited about the 2030 Vision that was outlined by the company’s senior management team at its Capital Markets Day in October 2024.
“However, we are unanimous in the view that the key to achieving that vision is the availability of capital; and that the share price does not reflect the underlying value of the company. We believe that now is the right time to undertake a rigorous and formal strategic review, which will consider options to increase access to capital and also enhance shareholder value,” he added.
Mr Hennessy will continue to Chair the Group throughout the strategic review process.
In Dublin, Dalata has a leading market share with 4,638 rooms and a 16% market share. Its Dublin portfolio consists of ten owned hotels, seven leased hotels and two managed hotels. Within the owned and leased category, there are eight Maldron hotels, seven Clayton hotels, The Gibson Hotel and The Samuel Hotel.
Its Regional Ireland portfolio comprises six Maldron hotels and five Clayton hotels located in Cork (4), Galway (3), Limerick (2), Portlaoise and Sligo. Ten hotels are owned, and one is operated under a lease.
The group has also significantly grown its presence in London since 2023, adding three hotels and now owns five hotels in the city. Its London portfolio is now 876 rooms, of which 74% were built within the last 10 years.
Within London, Dalata has announced a pipeline which includes an 11 room extension at Clayton Hotel City of London and 154 rooms through the lease of a new Clayton Hotel to be built on Old Broad Street.
Its Regional UK portfolio is now 4,204 rooms, including three new Maldron Hotels opened last year. The Regional UK owned and leased hotel portfolio comprises nine Clayton hotels and eight Maldron hotels. Four hotels are situated in Manchester, two in Glasgow, three in Northern Ireland and eight in other attractive regional UK cities.
Meanwhile, its Continental Europe portfolio includes Clayton Hotel Düsseldorf (393 rooms) and Clayton Hotel Amsterdam American (173 rooms). Dalata is currently in detailed discussions on two further hotels in Berlin and Madrid.
Shares in the company ended higher in Dublin trade today.
