Dalata Hotel Group PLC: H1 2025 Results

Revenue growth and strong Free Cashflow delivered in H1 2025

Continued Portfolio Expansion and recommended cash offer of €6.45 per share following rigorous Strategic Review

ISE: DHG LSE: DAL

Dublin and London | 27 August 2025: Dalata Hotel Group plc (‘Dalata’ or the ‘Group’), the UK and Ireland's largest independent four-star hotel operator, with a growing presence in Continental Europe, announces its results for the six-month period ended 30 June 2025.

*Throughout this release, all percentage variance comparisons are made comparing the performance for the six-month period ended 30 June 2025 (H1 2025) to the six-month period ended 30 June 2024 (H1 2024), unless otherwise stated. 

Dermot Crowley, Dalata Hotel Group CEO, commented: 

“The first half of 2025 has certainly been a busy one for everyone in Dalata. After announcing a strategic review on March 6th, the Board and executive team worked tirelessly in ensuring that the best result was achieved for shareholders. On July 15th, the Board recommended an all-cash offer of €6.45 per share from the Pandox Consortium which represents a 49.7% premium to the twelve-month volume-weighted average share price up to March 6th. I believe that this represents a very positive outcome for shareholders which is why the Board is unanimously recommending the offer.

Having met with Pandox and Scandic on a number of occasions, I am confident that the acquisition will also be a very positive outcome for the people working within Dalata.  I look forward to working in close partnership with our new owners to enable Dalata and its people to continue to grow and prosper within a larger international hotel company.

Despite the potential for distraction by the strategic review, our team remained focused and delivered a very strong operational performance as well as continuing to grow our development pipeline. Notwithstanding the external commentary of a challenging year for tourism in Ireland, on a ‘like for like’ basis, our RevPAR in Dublin and Regional Ireland is at the same level as the same period last year. However, continued increases in costs and especially pay rates puts downward pressure on our margins. The UK market has been more challenging, and this has impacted on our RevPAR performance with a 3.5% reduction versus last year. Our focus on innovation and looking for smarter ways to do things has helped to protect our margins across all geographies.

Growing a development pipeline whilst in the midst of a strategic review and ‘formal sales process’ is challenging and in that respect, I am especially pleased that we secured a second hotel opportunity in Edinburgh and our first hotels in Berlin and Madrid. We also completed the purchase of the Radisson Blu hotel in Dublin Airport which will be rebranded Clayton next year. Construction continues at our new Maldron hotel in Croke Park, our new Clayton hotel in Edinburgh and the extension at our Clayton hotel in Cardiff Lane. For the first time in the history of Dalata, when you include the pipeline rooms, we will have more rooms outside the Republic of Ireland than within it – we truly have become an international hotel company.

Since I took over as CEO, I have placed our people and our customers amongst my highest priorities. I am delighted to report that both our employee engagement scores, and customer satisfaction scores are at the highest levels in the history of Dalata. Innovation has also been a high priority and this year alone, we have rolled out a new CRM, a customer experience platform, a new revenue management system and a new recruitment tool. Our focus on sustainability continues to be recognised with industry leading scores across a range of third-party measurement platforms.

I passionately believe in the potential of our Clayton and Maldron brands. The digital transformation of our marketing activities together with the brands refresh that we carried out last year are contributing to the ongoing growth in direct bookings – up 8% on a ‘like for like’ basis versus the same period last year.

If shareholders approve the recommended offer on September 11th, and the other regulatory conditions are satisfied, this is likely to be our last financial results announcement as a PLC. While in some ways that is a sad occasion, I am happy that the Board is recommending a strategy that is in the best interests of shareholders. This strategy will also allow the people within Dalata to continue to deliver the ‘heart of hospitality’ to our guests whilst growing the Clayton and Maldron brands within a powerful international hotel company”.

Attractive portfolio delivers resilient operational performance

• Revenue of €306.5 million, up 1%, supported by new additions to the portfolio.
• Adjusted EBITDA1 of €102.5 million, down 5% due to lower RevPAR and the impact of cost inflation.
• Free Cashflow1 generation remains strong; €45.7 million (21.6 cent per share) for the first six months of 2025 after refurbishment capex and finance costs.
• Profit after tax decreased to €19.6 million primarily driven by Strategic Review related costs and an increase in non-cash accounting charges.
• ‘Like for like’ RevPAR1 of €109.78, down 2% versus H1 2024, with Dalata Dublin hotels outperforming the Dublin market.
• ‘Like for like’ Hotel EBITDAR margin1 down 210 bps to 37.5% (H1 2024: 39.6%). In a lower RevPAR environment, meaningful progress has been achieved in offsetting general cost rises and payroll inflation through new systems and technologies, operational efficiencies and innovation, further supported by a reduction in energy costs.
• Continued focus on people and service, with strong employee engagement scores (H1 2025: 9.0; H1 2024: 8.9) and consistently high customer satisfaction ratings (H1 2025: 87%; H1 2024: 85%).
• Continued growth in direct bookings (+8% on ‘like for like’ basis versus H1 2024), and brand share of online transient room nights.

Portfolio Growth

• Dalata has delivered strong execution of its expansion strategy, securing four hotels in prime capital city locations during the period, which will add over 1,000 rooms to the portfolio with an additional extension potential of 250+ rooms at Dublin Airport.
  • Clayton Hotel Tiergarten, Berlin: a 274-bedroom hotel centrally located between the Kurfürstendamm and the Brandenburg Gate under a 25-year operating lease with an 18-month refurbishment programme due to open in H2 2026.
  • Clayton Hotel Valdebebas, Madrid: a 243-bedroom hotel near Madrid International Airport under a 15-year operating lease due to open in H1 2029, with two 5-year tenant extension options.
  • Radisson Blu Hotel Dublin Airport: a 229-bedroom existing property located within 600m of Terminal 2 Dublin Airport, acquired for €83 million and completed in June 2025 (extension potential of 250+ rooms). To be rebranded Clayton next year.
  • Clayton Hotel Morrison Street, Edinburgh: a 256-bedroom development ideally located next to the Edinburgh International Conference Centre, expected to open in H1 2028.
  • Excellent progress on the construction development works at Maldron Hotel Croke Park, Dublin (Q2 2026), Clayton Hotel St. Andrew Square, Edinburgh (Q4 2026) and Clayton Hotel Cardiff Lane, Dublin extension (Q2 2027).
  • Capex requirements for projects currently under development estimated to be in excess of €70 million.

Robust financial position

Dalata continued to apply a disciplined, capital allocation strategy, pursuing acquisitions, developments and lease arrangements that meet its strict financial and operational criteria.

• Hotel assets valued at approximately €1.8 billion as of 30 June 2025, with 74% of the portfolio value located in key urban markets of Dublin and London, positioning the business to drive future performance and growth.
• Portfolio remains well-maintained, supported by €11.4 million in refurbishment investment during H1 2025, including the upgrade of 135 bedrooms.
• Long-term, stable lease profile with a weighted average unexpired lease term 27.3 years, (excluding land leases with a lease term of 100 years and over) and predominantly fixed rent structures until 2026.
• Net Debt to EBITDA after rent¹ of 1.7x.
• Normalised Return on Invested Capital¹ of 11.7% for the 12 months ended 30 June 2025 (year ended 31 December 2024: 12.5%).

Continue to progress sustainability strategy

• Achieved a 37% reduction in scope 1 and 2 carbon emissions per room sold in H1 2025 versus H1 2019.
• Received the top industry rating from Sustainalytics (Low Risk - 16.4) and maintained our AAA (Leader) rating from MSCI, recognising Dalata as a leading industry performer.
• Attained the ‘Gold’ standard from Green Tourism for all hotels.
• The Group published its first sustainability report in March in line with CSRD reporting obligations and is working to establish new near-term reduction targets.

Successful conclusion to rigorous Strategic Review

On 6 March 2025, Dalata announced its intention to explore strategic options aimed at optimising capital opportunities and enhancing shareholder value.

• A comprehensive sales process followed, attracting strong interest from trade buyers, strategic investors, financial institutions and financial sponsors. In parallel, the Board also evaluated additional strategic alternatives, including extending on-market share buy-back programmes, larger capital returns to shareholders, and considering asset disposals or significant sale and leaseback arrangements.
• On 15 July 2025, the Board unanimously recommended a cash offer by Pandox Ireland Tuck Limited (Bidco) a newly-incorporated company wholly-owned by Pandox AB (“Pandox”) and Eiendomsspar AS (“Eiendomsspar”, and together with Pandox and Bidco, the “Consortium”) for the entire issued and to be issued share capital of Dalata (other than Dalata Shares in the beneficial ownership of Bidco) (the Acquisition), to be implemented by way of a Scheme of Arrangement under Chapter 1 of Part 9 of the Irish Companies Act 2014 (the Scheme).
• Under the terms of the Acquisition, Dalata Shareholders will be entitled to receive €6.45 in cash per Dalata Share. The offer represents a 35.5% premium to the closing price of €4.76 per Dalata Share on 5 March 2025 (being the last business day prior to the launch of the Strategic Review and Formal Sale Process) and a 49.7% premium to the volume-weighted average price of €4.31 per Dalata Share for the twelve-month period ended on 5 March 2025 and an equity value of approximately €1.4 billion on a fully diluted basis.
• The consortium of Pandox and Eiendomsspar are established hotel investors, well positioned to support Dalata’s long-term growth ambition.
• Framework agreement with Pandox’s long-term operating partner, Scandic Hotels Group AB, to be an operating partner for the existing Dalata portfolio.
• The Dalata Board believes that the Acquisition is in the best interests of Dalata Shareholders and represents the most effective route to enhance value for shareholders, relative to Dalata’s other strategic options which have been considered as part of the Strategic Review. As publicly announced, the Board posted a scheme document to Dalata Shareholders on 12 August 2025 (the Scheme Document) and has convened Scheme Meetings and an EGM to be held at Clayton Hotel Dublin Airport, Stockhole Lane, Clonshagh, Swords, Co. Dublin, K67 X3H5 on 11 September 2025.
• The Acquisition is conditional on, among other things, (i) the approval by Dalata Shareholders of the Scheme Meeting Resolution and the EGM Resolutions (other than the Rule 16 Resolution) (as such terms are defined in the Scheme Document); (ii) the receipt of any necessary regulatory or other approvals, in particular from the European Commission; and (iii) the sanction of the Scheme by the High Court. If the Scheme is approved and becomes effective it will be binding on all scheme shareholders, irrespective of whether or not they attended or voted in favour or at all at the Scheme Meetings or the EGM. The Scheme is expected to become Effective in November 2025.
• Having regard to the Acquisition and its expected timetable, the Board has resolved not to propose an interim dividend for the first half of 2025. This is consistent with the terms of the recommended offer and means the offer price is not reduced by the amount of any dividend distribution.

Outlook

The Group’s ‘like for like’ RevPAR1 for July/August is expected to be c. 2.5% behind on 2024 levels. RevPAR for the ‘like for like’ Dublin and UK portfolios are expected to be 2.5% and 2.3% behind for the same period respectively, while RevPAR for the ‘like for like’ Regional Ireland portfolio is expected to be 2.4% ahead.

We continue to monitor the economic backdrop and market uncertainty, demand levels are supported by strong levels of flight volumes and an event schedule that will drive international interest particularly in Dublin. The second half of the year will also benefit from the acquisition of Radisson Blu Hotel Dublin Airport and the full year impact of the four UK openings in mid-2024.

The business benefits from its exceptional portfolio of modern, centrally located hotels, its access to a pool of talented staff supported in their learning and development by the Dalata Academy and the growing customer awareness of the Clayton and Maldron brand in its core markets. Looking ahead to the rest of the year we remain confident in our ability to continue to perform strongly as a business.

ENDS

About Dalata

Dalata Hotel Group plc is the UK and Ireland's largest independent four-star hotel operator, with a growing presence in Continental Europe. Established in 2007, Dalata is backed by €1.8bn in hotel assets with a portfolio of 56 hotels, primarily comprising a mix of owned and leased hotels operating through its two main brands, Clayton and Maldron hotels. For the six-month period ended 30 June 2025, Dalata reported revenue of €306.5 million, basic earnings per share of 9.3 cent and Free Cashflow per Share of 21.6 cent. Dalata is listed on the Main Market of Euronext Dublin (DHG) and the London Stock Exchange (DAL). For further information visit: www.dalatahotelgroup.com

Conference Call

There will be no conference call accompanying this results release. Any questions can be directed to the contacts below.

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Note on forward-looking information

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Group will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.

Half Year 2025 financial performance