Dalata Hotel Group PLC (DAL,DHG) 
Dalata Hotel Group PLC: 2020 Preliminary Financial Results 
02-March-2021 / 07:00 GMT/BST 
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Unbowed and Unbroken 
ISE: DHG   LSE: DAL 
 
Dublin and London | 2 March 2021: Dalata Hotel Group plc ("Dalata" or the "Group"), the largest hotel operator in 
Ireland with a growing presence in the United Kingdom, announces its results for the year ended 31 December 2020. 
Results Summary 
                                                  2020    2019  Variance on 2019 
EURmillion 
Revenue                                           136.8   429.2 (68.1%) 
Segments EBITDAR1                                 28.9    182.8 (84.2%) 
Adjusted EBITDA1                                  18.7    162.2 (88.5%) 
(Loss)/profit before tax                          (111.5) 89.7  (224.3%) 
(Loss)/profit after tax                           (100.7) 78.2  (228.7%) 
Basic (loss)/earnings per share (cents)           (50.9)  42.4  (220.0%) 
Adjusted basic (loss)/earnings per share1 (cents) (27.2)  42.0  (164.8%) 
Key performance indicators1  2020  2019   Variance on 2019 
Occupancy %                  30.9% 82.6% 
Average room rate (EUR)        88.77 113.14 (21.5%) 
RevPAR (EUR)                   27.45 93.43  (70.6%)

OUR PEOPLE ARE UNBOWED AND OUR BALANCE SHEET IS UNBROKEN ? Unprecedented year of challenge for the industry - 68% reduction in revenue leading to loss after tax of EUR101

million ? Proactive cost reductions and government support schemes protected employment and cash during periods of low

occupancies ? Implementation of Dalata Keep Safe Programme with accreditation from Bureau Veritas

INCREASED LIQUIDITY DUE TO SPEEDY AND PROACTIVE RESPONSE ? Sale and leaseback of Clayton Hotel Charlemont, Dublin in April for EUR65 million ? Agreed amended debt facility in July with additional EUR39 million facility and revised suite of covenants ? Equity placing in September raised net proceeds of EUR92 million to further enhance balance sheet ? Increased liquidity with cash of EUR50 million and undrawn committed debt facilities of EUR248 million at the end of

December

ROBUST BALANCE SHEET PROVIDES SECURITY AND OPPORTUNITY ? Asset backed balance sheet with hotel assets of EUR1.2 billion ? Conservative gearing with Net Debt to Value1 of 23%

READY FOR THE RECOVERY ? Management teams at hotels and central office in place to manage the recovery ? Hotels are primarily located in large cities or at major airports ? Modern well-maintained portfolio of hotels - average age of hotels is 17 years ? Exciting pipeline of close to 3,300 rooms in excellent locations

STRATEGIC AND OPERATING HIGHLIGHTS ? We have maintained a strong focus on retaining our core teams and providing opportunities for learning and

development, ensuring that our teams are well prepared as the hospitality industry gradually reopens. ? All of our hotels operate under the Dalata Keep Safe Programme. Our health and safety protocols have been

accredited by Bureau Veritas, a world leader in Health and Safety testing, inspection and certification. ? We have used our time wisely during the crisis to implement initiatives that will add long term value. We have

accelerated the rollout of new technologies across the Group including OPERA Cloud (Property Management System) and

MICROS Simphony POS system for the hotels' food and beverage outlets. We also completed the project to centralise

payroll across the Group. The processing of wages for all employees in our 41 hotels is now done from the Shared

Service Centre in Cork. These initiatives will allow the teams at our hotels to spend less time processing data and

more time serving the needs of our customers. ? Despite the disruption caused by the pandemic, Dalata continued to progress its growth strategy with three new

agreements for lease secured in 2020. In November 2020, we also opened the new 44 bedroom extension at Clayton

Hotel Birmingham and the new Meeting & Events Centre at Clayton Hotel Cardiff Lane in Dublin. ? The Group continues to progress its development pipeline of almost 3,300 rooms across Ireland and the UK. Dalata's

pipeline of seven hotels already under construction includes two in Ireland and five in the UK; all of these

properties are scheduled to open between Q3 2021 and Q2 2022. Eight development projects including extensions are

currently at the pre-construction phase. When all projects are completed, the Group will have almost doubled its

rooms in the UK. ? The Group's financial position remains strong with the Group's amended suite of covenants providing flexibility as

business recovers. The Group has cash and undrawn committed debt facilities of EUR290 million at the end of February

2021. ? We protected our cash during 2020 through proactive cost reductions, diligent working capital management,

cancellation of dividends, the postponement of uncommitted capital expenditure and utilisation of governments'

support. ? We improved our liquidity through 2020 by leveraging our strong relationships with our banking partners and

institutional landlords as evidenced by the sale and leaseback of Clayton Hotel Charlemont, Dublin in April for EUR65

million and the increase in our bank facilities of EUR39 million in July. We also raised equity from new and existing

shareholders resulting in net proceeds of EUR92 million. ? Our asset backed balance sheet remains robust with EUR1.2 billion in hotel assets. This is despite total revaluation

losses of EUR174.4 million in 2020 (H2 2020: loss of EUR13.4 million), arising from independent asset valuations in

2020, representing a circa 13% decrease on valuations versus December 2019. ? The sale and leaseback of Clayton Hotel Charlemont highlights our continued ability to create value and our core

strengths of selecting prime sites, developing hotels and our ability to leverage our strong relationships with

fixed income investors. We acquired the site in the centre of Dublin city for EUR11.9 million in February 2016. We

built the 187 room Clayton hotel for EUR29.7 million. In April 2020, we sold the hotel to Deka Immobilien for EUR65

million at an annual lease cost of EUR3.05 million, achieving an exceptional yield despite the Covid-19 pandemic. ? We have enhanced our reputation as a strong reliable covenant by meeting our rental obligations with institutional

landlords through the course of the pandemic. We are confident that this will assist us greatly in securing

opportunities to continue to build our pipeline in 2021 and beyond.

OUTLOOK

The hospitality industry in Ireland and the UK continues to be impacted by restrictions to curb the spread of Covid-19. Since the start of 2021, all of our hotels remain operational providing accommodation to front line workers, essential workers and those requiring quarantine but are closed to the general public. The easing of restrictions and reopening of the hospitality industry will be determined by the Irish and UK governments.

Occupancy as expected has remained muted in January 12% and February 15% with an Adjusted EBITDA loss expected to be approximately EUR2.5 million for the first two months.

The outlook for the near term remains uncertain at present and it is not yet known when international travel will return to more normal levels. However, we remain ready and primed to get back to full operating levels once restrictions are lifted. The rollout of vaccines across Europe and globally is very encouraging, with the speed of rollout increasing as we move towards Q2.

As lockdowns and travel restrictions are gradually eased, the Group anticipates domestic demand will return in the first instance, as seen in July and August 2020 when restrictions were relaxed in Ireland and the UK, followed by international leisure and business travel. Our teams look forward to welcoming back those customers who have not been able to visit us over the last year.

The Group will continue the measures implemented to combat the impact of Covid-19 on the business. In addition, we 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 assist us greatly in securing further opportunities.

Our cash and undrawn debt facilities of EUR290 million at the end of February 2021 leave us in a great position to withstand any further impact of 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 convinced that Dalata is well placed to benefit with its strong balance sheet, young, well invested portfolio and experienced teams at hotels and central office.

Pat McCann, Dalata Hotel Group CEO, commented:

"2020 has been an extraordinary year, unlike any other I have encountered during my 50-year career in the hospitality industry. The impact of the Covid-19 pandemic has been extremely challenging for our industry, our people and our communities.

When I reflect on our performance in 2020, I am extremely proud of what we accomplished together. We have ended a very difficult year in a strong financial position with our core teams intact, morale running high and we are ready for the challenges and opportunities ahead. Quite simply, we are unbowed and unbroken. We achieved this by holding firm to the values and beliefs that define us including being fair, transparent, consistent and balanced.

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