Dalata Hotel Group Reports Mixed 2024 Results with Revenue Growth but Profit Decline
Why we think this is neutral
Dalata Hotel Group's 2024 results present a mixed picture. While revenue grew by 7.3% to €652.2 million, indicating strong top-line performance, profit after tax decreased by 12.7% to €78.7 million. This divergence between revenue growth and profit decline is a concern. However, the company maintains a strong financial position with €364.6 million in cash and undrawn loan facilities, and a healthy Net Debt to EBITDA after rent ratio of 1.3x. The 'like for like' Hotel EBITDAR margin decreased by 140 bps to 40.9%, showing some pressure on operating efficiency. Looking forward, the company expects RevPAR to be 2.5% ahead of 2024 levels for Q1 2025, suggesting a positive short-term outlook. While there are challenges such as increased payroll costs and inflationary pressures, the company's strong liquidity and growth initiatives balance these concerns.
Key Points
- Revenue increased 7.3% to €652.2 million
- Profit after tax decreased 12.7% to €78.7 million
- Adjusted EBITDA grew 5.1% to €234.5 million
- Net Debt to EBITDA after rent ratio at 1.3x
- Hotel EBITDAR margin decreased 140 bps to 40.9%
- Opened four new Maldron hotels in 2024
- Expects RevPAR to be 2.5% ahead of 2024 levels for Q1 2025
- Proposed final dividend of 8.4 cents per share
- Targeting 80% growth to 21,000 rooms by 2030
Summary
Dalata Hotel Group's 2024 results show a 7.3% increase in revenue to €652.2 million, but a 12.7% decrease in profit after tax to €78.7 million. The company maintains a strong financial position with €364.6 million in cash and undrawn loan facilities, and a Net Debt to EBITDA after rent ratio of 1.3x. However, the 'like for like' Hotel EBITDAR margin decreased by 140 bps to 40.9%, indicating some pressure on operating efficiency. The company expects RevPAR to be 2.5% ahead of 2024 levels for Q1 2025, suggesting a positive short-term outlook. Challenges include increased payroll costs and the need to mitigate effects of inflation. The company continues to execute its growth strategy, opening four new hotels in 2024 and securing agreements for future developments.