Dalata Hotel Group (DHG) H2 2024 earnings summary

Executive summary

• Announced a strategic review to explore options including continuing current strategy, enhancing shareholder value, returning capital, or a potential sale or merger.

• Revenue grew 7.3% year-over-year to €652.2m, with Adjusted EBITDA up 5.1% to €234.5m, driven by portfolio expansion and strong UK performance.

• Launched 2030 Vision targeting 21,000 rooms (+80%) by 2030, with a current pipeline of 1,624 rooms and 838 new rooms opened in 2024.

• Entering the review from a position of financial and operational strength, with a clear vision to become the leading four-star operator in Ireland and the UK.

• Strong focus on people, innovation, and digital transformation to drive growth and efficiency.

Financial highlights

• Revenue: €652.2m (+7.3% vs 2023); Adjusted EBITDA: €234.5m (+5.1%); Net profit: €78.7m (-12.7%).

• Free cash flow of €123.7m, representing 71% conversion of EBITDA after rent payments.

• Profit after tax nearly €80m, impacted by increased accounting charges from portfolio growth and refinancing.

• Proposed final dividend of €0.084 per share, a 5% increase year-over-year, payable May 2025.

• €55m spent on share buybacks, canceling about 6% of shares at an average price of €4.25.

Outlook and guidance

• Q1 2025 group RevPAR expected to be 2.5% ahead of last year; Dublin hotels projected up 5% year-over-year.

• Payroll costs expected to rise 5% in 2025 due to statutory wage increases, but offset by efficiency initiatives and RevPAR growth.

• Confident in ability to cover cost increases and deliver on 2030 growth targets, supported by strong demand and full-year benefit from 2024 openings.