DALATA HOTEL GROUP PLC While the emergence of new variants remains a threat, the progress being made on the rollout of vaccines across Europe and globally is very encouraging. The outlook for the near term remains uncertain at present. A strong recovery in domestic leisure is underway and we expect domestic corporate business to further recover this month given the progressive easing of restrictions. The timing of the recovery of international leisure and corporate travel is somewhat uncertain but the ongoing global rollout of vaccines is a very positive influencing factor. The recovery of international travel is important for our Dublin and London hotels.
The Group will continue to implement measures to combat the impact of Covid-19 on the business. In addition, our Acquisitions and Development team are assessing distressed opportunities as they arise. Our reputation as a strong reliable covenant has been enhanced through the course of the pandemic and we are confident that this will place Dalata in a stronger position to secure further growth opportunities.
The Group's asset backing and strong liquidity ensure it is well-positioned to withstand any remaining Covid-19 restrictions in 2021 and participate in the recovery of global tourism. The hospitality sector has historically shown tremendous resilience to recover from other demand shocks and crises. As a result, the Board remain confident that Dalata is well placed to benefit with its strong balance sheet, young, well-invested portfolio and experienced and motivated teams at hotels and central office.
Pat McCann, Dalata Hotel Group CEO, commented:
"I am pleased to report our hotels have successfully re-opened to all guests in recent months. As a sense of normality returns to society, the demand for domestic leisure has increased across Ireland and the UK. Our people have skilfully managed the re-opening and are once again providing our guests with an exceptional experience.
As I reflect on my time at Dalata, I am incredibly proud of what we have achieved as a Group. Through good times and bad, the dedication and resilience shown by our teams has been admirable. This has never been tested to such a great degree as during the course of the last 18 months. Our values and beliefs have shone a light to guide us through this difficult time and we will come out the other side more confident than ever in our abilities and in how we operate our business. Our skilled and wonderful people will drive the business to new heights in the future.
It gives me great pleasure to be handing over the reins of the business to Dermot Crowley on 31 October 2021. Dermot has been instrumental in the development of the business and execution of our strategy since he joined in 2012 and has been selected by the Board to succeed me as CEO. I have known Dermot for over twenty years, and I am confident he will lead Dalata through the next phase of growth while maintaining the wonderful culture and people focus that we have built together at Dalata.
As I prepare to step aside from my time at Dalata, I will be watching its progress with great enthusiasm. The Group has all the attributes to be a great success into the future, with superb people at its core. We are entering a period of great opportunity in the hotel industry. Dalata has a wonderful reputation with stakeholders across all areas of the business and is strongly positioned to take advantage of future opportunities in new and existing markets. I have full confidence in the Dalata team as it embarks on this pursuit".
Dermot Crowley, Dalata Hotel Group CEO Designate, commented:
"I am honoured to have been chosen by the Board to succeed Pat as CEO. I have known Pat for over 20 years, during which he has given me great guidance and support which I hugely appreciate. I plan to continue to uphold the strong culture and values we have built together at Dalata.
The roll out of vaccines in both Ireland, the UK and globally has been very encouraging to date. International travel in Ireland returned on 19 July and restrictions were relaxed in the UK earlier in the summer. This is an important development as our hotels in Dublin and London require the return of international travel for occupancies to recover more substantially.
The Irish and UK governments have provided tremendous supports to the hospitality industry over the last 18 months which have greatly helped us in weathering this crisis and protecting employment. As the hospitality industry begins to recover and these supports unwind, it is important to bear in mind that it will take some time for the industry to fully recover. One key support has been the reduced VAT rate of 9% in Ireland which should be extended further to support the industry and the large number of jobs that depend on it.
Our HR team have been instrumental in building a strong framework around how we recruit, retain and develop our people. Our Dalata Academy and the wealth of training opportunities available within the organisation allows our people to constantly grow and develop, making Dalata a great place to work in the hospitality industry in both Ireland and the UK. I am delighted to reveal that 2021 will see our largest ever graduate intake.
ESG considerations continue to be front and centre of everything we do at Dalata and we have made further progress in this area in the last six months. We believe that embedding sustainability across all areas of the business will give us a competitive advantage in the future. Following a rigorous tendering process, we have partnered with a leading ESG Advisory firm to support the development of our 3-year ESG Strategy plan which will be launched by Q1 2022. Our ESG strategy plan will be aligned with best practice and will bring together and complement our current actions and objectives. We are also committed to setting climate targets that align with TCFD (Task Force on Climate-Related Financial Disclosures). I am delighted that our hotels received 36 gold and 8 silver awards with Green Tourism in 2021 representing significant progress on our previous results. This provides us with a solid platform across all hotels from which we can build and improve.
Our financial position remains very strong and we have protected our cash through strong operational management, cutting non-essential costs and availing of government supports. Our asset backed balance sheet has continued to serve us well and will give us great flexibility and security as we look at opportunities that begin to arise.
I am delighted that we have opened our first hotel in Scotland with the Maldron Hotel Glasgow City on 3 August. This 300-room hotel is ideally located on Renfrew Street in the city centre. The project was successfully managed by our Acquisitions and Development team in conjunction with our development partners, before handing over to the management team at the hotel. As is the case with all our new hotels, the senior management team was promoted from within the Group, highlighting our ability to provide our people with opportunities to grow and develop within Dalata while de-risking the execution of our growth plans.
We will add a further six hotels to the Dalata portfolio between December 2021 and May 2022. This includes our first ever hotel in Bristol, two hotels in Manchester city centre, a Clayton Hotel in Glasgow to complement our existing Maldron hotel in the city and two hotels in Dublin. These new openings along with the future openings planned for 2023 and 2024 are transforming our portfolio. Our teams will continue to work on sourcing and securing additional projects to add to our pipeline in the future".
ENDS
About Dalata
Dalata Hotel Group plc was founded in August 2007 and listed as a plc in March 2014. Dalata has a strategy of owning or leasing its hotels and also has a small number of management contracts. The Group's portfolio now consists of 29 owned hotels, 13 leased hotels and three management contracts with a total of 9,561 bedrooms. In addition to this, the Group is currently developing 11 new hotels and has plans to extend four of its existing hotels, adding over 2,600 bedrooms in total. For the first six months of 2021, Dalata reported revenue of EUR39.6 million and a loss after tax of EUR30.4 million. Dalata is listed on the Main Market of Euronext Dublin (DHG) and the London Stock Exchange (DAL). For further information visit: www.dalatahotelgroup.com
Conference Call Details | Analysts and Institutional Investors
Management will host a conference call for analysts and institutional investors at 08:30 BST (03:30 ET) today 1 September 2021, and this can be accessed using the contact details below.
From Ireland dial: +353 1 431 1252
From the UK dial: +44 3333 000 804
From the USA dial: +1 631 913 1422
From other locations dial: +353 1 431 1252
Participant PIN code: 16039997#
Contacts
Dalata Hotel Group plc investorrelations@dalatahotelgroup.com Pat McCann, CEO Tel +353 1 206 9400 Dermot Crowley, CEO Designate Carol Phelan, CFO Niamh Carr, Group Head of Investor Relations and Strategic Forecasting Joint Group Brokers Davy: Anthony Farrell Tel +353 1 679 6363 Berenberg: Ben Wright Tel +44 20 3753 3069 Investor Relations and PR | FTI Consulting Tel +353 86 401 5250 Melanie Farrell dalata@fticonsulting.com
Note on forward-looking information
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