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Dalata Hotels trading slightly ahead after first quarter
Investors in Ireland-focussed hotel operator Dalata Hotel Group were told how trading in the first four months of 2018 had been slightly ahead of the board's expectations on Thursday.
The AIM-traded firm, which was holding its annual general meeting in Dublin, said that revenue per available room (RevPAR) growth in its Dublin properties had been marginally ahead of expectations, while RevPAR growth at its regional Ireland properties was in line with expectations.
"STR have reported weaker market conditions in the UK for the first quarter of 2018 but we are delighted to report that we continue to outperform the market in terms of RevPAR growth and the performance of our UK properties is in line with our expectations," chairman John Hennessy told shareholders.
"Management is very satisfied with the trading performance of the Group's hotel portfolio in the first four months of the year.
"The outlook for the first six months of the year is positive."
Hennessy said the board was also "delighted" that Maldron Hotel Belfast City opened ahead of schedule on 13 March.
Although it was early days, the hotel was said to be trading well, with customer feedback positive.
The additional 106 rooms at Clayton Hotel Dublin Airport would open in the first week of June, while Maldron Hotel Kevin Street Dublin would open in the first week of July.
Construction of Clayton Hotel Charlemont Dublin, Maldron Hotel South Mall Cork, and Maldron Hotel Newcastle all remained on track to open on time and within budget.
The extensions currently underway at Maldron Hotel Sandy Road Galway, Clayton Hotel Ballsbridge Dublin, and Maldron Hotel Parnell Square Dublin also remained on schedule and within budget.
"We have engaged Savills on our Tara Towers Hotel site and expect to finalise our approach to the redevelopment of this site in the coming months," Hennessy said.
"We remain very encouraged by the quality and number of potential new developments that we are currently reviewing."
The company completed a large proportion of its annual capital refurbishment programme in the first quarter of tjeu year, which Hennessy said had been well received by customers.
Dalata's investment in technology also continued apace, shareholders hears, with the rollout of new procurement systems being extended to additional suppliers this month.
"We completed the installation of the Opera property management system across our portfolio in March while we continue to invest in our website customer journey," Hennessy explained.
"It continues to be a very exciting time for the group and management remains focused on delivering excellent returns for our shareholders."