Dalata Hotel Group (DHG) Investor Day 2024 summary

Strategic Vision and Growth Ambitions

• Targeting 21,000 rooms by 2030, a 75% increase from the current 12,000, focusing on major cities in Ireland, regional UK, London, and continental Europe.

• Aims to be the largest operator in the 4-star segment in all major cities in Ireland and regional UK, with a growing presence in London and Europe.

• Growth to be achieved through a balanced mix of leases and ownership, leveraging both freehold and leasehold interests.

• Expansion in Europe prioritized over smaller UK cities due to better risk-reward profiles and larger market opportunities.

• Clustering in Germany is driven by the presence of multiple large cities, enabling operational efficiencies.

Growth Strategy and Market Expansion

• Plans to maintain leading market share in Ireland, targeting 20% in Dublin, and expand in key regional UK cities with strong RevPAR.

• London room count doubled since 2022; further expansion planned to reach 2.5% market share, equating to 2,500 additional bedrooms.

• European growth focused on large cities with strong ADR and occupancy, targeting a conservative 2% share in identified cities for 14,000 new rooms.

• Recent additions include 15 hotels (2021–2024), nearly doubling UK room count and adding 3,500 bedrooms across three geographies.

• Actively negotiating new opportunities in Madrid, Berlin, London, Edinburgh, and Dublin, primarily leasehold but also freehold.

Marketing Transformation and Brand Strategy

• Comprehensive marketing transformation since 2022, consolidating digital assets and streamlining processes for efficiency.

• Launched refreshed, next-generation websites, reducing from 59 to 6 sites, with 80% of traffic driven by 300 pages.

• Repositioned Clayton and Maldron brands to be more contemporary and meaningful, with targeted messaging and new advertising campaigns.

• Direct booking is a key priority, supported by new CRM and customer experience platforms to reduce reliance on OTAs.

• Strong brand awareness and NPS in Ireland; ongoing efforts to build presence and reputation in the UK and Europe.