Dalata Hotel Group (DHG) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached €306.5m, up 1–1.4% year-over-year, with adjusted EBITDA at €102.5m, reflecting a slight increase or 5% decline depending on the metric, and profit after tax fell 45% to €19.6m due to strategic review costs and higher non-cash charges.

• Strategic review led to a recommended all-cash offer of €6.45 per share, a 49.7% premium to the 12-month average price.

• Acquisition of Radisson Blu Hotel Dublin Airport completed for €83m, and three to four new lease agreements signed in Berlin, Madrid, and Edinburgh, expanding the pipeline by over 1,000 rooms.

• Free cashflow per share was 21.6c, with total free cashflow at €45.7m, marginally ahead of H1 2024.

• Highest ever employee and customer satisfaction scores achieved, with continued growth in direct bookings, industry-leading ESG ratings, and a 37% reduction in carbon emissions per room sold since 2019.

Financial highlights

• Group revenue increased to €306.5m (+1–1.4% YoY), driven by new openings and acquisitions, partially offset by disposals and weaker UK/German performance.

• Adjusted EBITDA was €102.5m, down €5.1m or 5% year-over-year; profit before tax fell to €23.3m from €41.9m; profit after tax was €19.6m, down 45%.

• Free cashflow per share was 21.6c; free cashflow €45.7m; net cash from operating activities €96.0m.

• LFL occupancy held at 77.2–77.9%, with ARR and RevPAR both 1.7–2% behind last year.

• Hotel assets valued at €1.8bn; net debt to EBITDA after rent at 1.7x.

Outlook and guidance

• LFL RevPAR for July & August expected to be about 2.5% behind last year; Dublin and UK slightly down, Regional Ireland up.

• No interim dividend proposed for H1 2025 due to the pending acquisition.

• Demand supported by strong flight volumes and events, with positive contributions expected from recent acquisitions and openings.

• Confidence in continued strong performance, supported by portfolio quality and brand strength.

• Continued monitoring of economic and geopolitical uncertainties.