EU visits rise for Dalata Hotel Group as the UK stays at home

Irish hotel group Dalata announced on Tuesday that despite a decline in visitors to the Emerald Isle in the wake of the Brexit vote it had seen a strong performance in its second half of trading.

Dalata said it had grown pre-tax profits 56% from €18.2m to €32.7m in the first six months of the year as revenues jumped 21% from €130m to €161m just twelve months later.

The company said that performance across all three regions had been strong since the period close on 30 June but that weaker sterling had adversely affected the number of travellers from the UK going to Dublin, Dalata's major market in Ireland.

However, compensation was offered by way of an increased number of EU and North American visitors.

Dalata said it had a pipeline of more than 1,280 new rooms on target to open in 2018 as it invested €8.6m into its ongoing refurbishment programme, and spent a further €34.9m to purchase the Hotel La Tour in Birmingham.

The group had cash and equivalents of €88.9m on hand at 30 June as it increased the limit on its revolving credit facility from €30m to €80m.

"We are monitoring the reduction in UK visitors to Ireland since the Brexit vote in 2016. To date, overall visitor numbers remain robust due to growth in other markets. Our strategy of retaining substantial volumes of corporate and tour group business in our hotels makes us less reliant on the UK transient visitor," said chief executive officer Pat McCann, who on Tuesday bought 20,000 shares at €5.16 each in the Irish hotel operator.

"The second half of 2017 will be a busy period for the group. We will continue to explore the exciting opportunities which exist in the UK and Irish hotels markets and will continue to work on our development projects and extensions. We will strive to further increase our service and quality levels whilst also converting strongly additional revenue to the earnings before interest, tax, depreciation, amortisation and restructuring line," he added.

Basic earnings per share were 82% higher at 15.47 EUR cents.

As of 1645 BST, shares had gained 6.24% to 485.00p.