Dalata Hotel's (DAL) bid to become the number one domestic destination for holidaymakers is living up to expectations. The dual-listed group added seven hotels, 1,600 rooms and completed 748 refurbishments during 2016, as its Clayton and Maldron brands became the two largest tourist rest spots in its native Ireland.
Increasing consumer awareness helped Dalata to post a surge in revenue per available room (RevPAR) across all its key locations. In Dublin, RevPAR grew 3.8 percentage points ahead of competitors at 20 per cent. Dalata also greeted more guests in undersupplied Irish cities - Cork, Limerick and Galway - and outperformed the wider market in Manchester, Cardiff and Leeds.
Supply is set to increase in the Irish capital, but management is confident that there is enough demand to absorb this. In fact, work is under way to increase the size of three Dublin hotels and build two new ones. New locations will also pop up in Cork, Belfast and Newcastle, bringing the total number of new hotel rooms under development to 1,200.
Broker Davy expects adjusted pre-tax profits of €72.8m in 2017, leading to adjusted EPS of 34.2¢ (from 26.6¢ in 2016).
| DALATA HOTEL GROUP (DAL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 380p | MARKET VALUE: | £695m | |
| TOUCH: | 380-382p | 12-MONTH HIGH: | 400p | LOW: 280p |
| DIVIDEND YIELD: | nil | PE RATIO: | 23 | |
| NET ASSET VALUE: | 339¢ | NET DEBT: | 33% | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012* | 71.1 | -139 | na | nil |
| 2013 | 60.6 | 0.0 | -6,074 | nil |
| 2014 | 79.1 | 4.0 | 3.7 | nil |
| 2015 | 226 | 28.5 | 14.6 | nil |
| 2016 | 291 | 44.1 | 19.1 | nil |
| % change | +29 | +55 | +31 | - |
Ex-div: Payment: *Pre-IPO figures £1=€1.17 | ||||
