Dalata Hotel Group moves back into the black during the 1H

Revenues were ahead by 9.1% over the six months ending on 30 June in comparison to the same stretch of 2019 to reach €220.2m.

Mirroring that improvement, revenues per available per room surged from €16.28 one year before to €88.61.

Group occupancy also improved, hitting 69.8%, against the year earlier figure of 19.9%.

Profits before tax meanwhile rose to €52.0m, following €37.8m of red ink for the comparable year ago period.

Profitability was also 39% higher on the front half of 2019, before the pandemic.

Free cashflow also increased, from €45.2m over the first six months of 2019 to €56.6m this time around.

Occupancy had improved further since period end, reaching 89% in July/August, the company said in a statement.

The average room rate had also continued to rise, reaching €151 in July/August whereas at the end of the half it had stood at €126.89 and in the first half of 2019 at €110.30.

Regarding the outlook, management said that it was "cautiously optimistic".

Nonetheless, "the trading environment remains challenging with global inflationary cost pressures around food supply, payroll and particularly energy.

"Although we have not seen any impact on demand to date, inflationary costs may impact consumer discretionary spending in the future."

Noteworthy, Dalata said that post period end the group had entered into forward agreements for gas and electricity, purchasing or locking in prices for roughly 75% of its electricity consumption and 65% of gas for the back half of 2022.

It also said that it was sticking to its plans to open 1,125 new rooms between 2023-25.

Gearing remained lower in the first half, at 1.9 times earnings before interest, taxes, depreciation and amortisation after rent, versus 2.8 times EBITDA in the same period of 2019.

Cash and undrawn facilities meanwhile reached €365.2m at period end, up from €298.5m at the end of 2021.

-- More to follow --