Dalata plots northern Europe expansion as profits jump
DALATA, Ireland’s biggest hotel group, is plotting an eventual foray into mainland Europe, with Germany and the Benelux countries among its likely targets, according to CEO Pat McCann.
But the hotel boss has stressed that such a move remains some way off, and won’t happen until Dalata has exploited significant more opportunities in the UK.
“Once we’re through that process, we’re already looking at the next location where we might consider,” Mr McCann told the Irish Independent as Dalata published a strong set of 2017 results.
He added that planning for moves into new locations begins two to three years in advance.
“We’re not waiting but it’s a little bit too soon to look beyond Ireland and particularly the UK,” said Mr McCann. “I don’t want the concentration to come off those, because that’s where most of the bang for our bucks is currently.
“It will be mainland Europe and it will be country-specific,” said the hotel boss of future expansion.
“It’s not a question that we dot ourselves all over the place. It’s not our strategy. We like to build strong positions in each geographic region that we’re in. Mainland Europe is a big place.
“It won’t be the Mediterranean. It will be northern Europe, in a market where we know and understand.”
He said Germany and the Benelux would be attractive.
“But it’s early days. We have done some work, but not enough for us to be definitive at this point in time,” added Mr McCann, who used to head the Jurys Doyle hotel business.
Stock market-listed Dalata saw its revenue jump 20pc to €348.5m last year, while its pre-tax profit rose 75pc to €77.3m. It has a market capitalisation of just over €1bn.
The group has a portfolio of 38 hotels, with 7,600 bedrooms. It is developing an additional 2,234 rooms. Dalata aims to expand significantly in the UK, and has identified 20 cities that are suitable for its Maldron and Clayton brands.
The group benefited from an improvement in its business across all regions last year. It also announced that it will start paying a dividend to shareholders.