Dalata Hotel Group, the Irish hotel group, has revealed a 28.8% rise in revenue and 55% rise in pre-tax profit for the year to 31 December 2016.
Revenue rose to €290.6m (£247.6m), while pre-tax profit leapt to €44.1m. The group’s portfolio also rose in value to €66.6m, while earnings per share rose to 26.58 cents, compared to 24.76 cents in 2015.
Occupancy rates across the hotels rose from 80.2% to 82.1%, and the average room rate increased from €87.00 to €97.60.
Despite the strong figures the group warned of risks facing the group during the current year, stating significant fluctuations in the value of sterling could affect the reported earnings and asset values of the Group as UK subsidiaries are reported in sterling and translated into Euro.
The group, which is listed on both the main markets of the Irish and London stock exchanges, added a significant reduction in the value of sterling would also make Ireland a more expensive destination for UK visitors, which in turn could impact on the number of UK residents staying in Irish hotels.
Pat McCann, Dalata Group chief executive, said: “2016 was a year that saw further significant growth in our portfolio adding seven hotels and circa 1,600 rooms to the business. We have also locked in a growth pipeline of 1,200 new hotel rooms, which will come into operation during 2018.
“Given our ambition to grow in the large cities of provincial UK, I was particularly happy to see the extent to which we outperformed the market in terms of RevPAR growth in Manchester, Cardiff and Leeds.
“I am already looking forward with enthusiasm to what we can achieve in 2017. We will continue to focus on improving returns from our current portfolio. We also intend to expand our hotel portfolio, particularly in the UK, seeking new or existing hotel opportunities which match our investment criteria.”
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