(Alliance News) - Dalata Hotel Group PLC on Tuesday declared its first dividend since the Covid-19 pandemic, as it said its performance in the year-to-date has been "exceptional".
The Dublin-based hotel chain reported a pretax profit of EUR50.4 million in the first half of 2023, down 3.1% from EUR52.0 million a year prior.
Dalta's profit was hurt as the company recorded significantly higher expenses and costs in the recent period.
Administrative expenses climbed 49% to EUR110.7 million from EUR74.4 million, while cost of sales increased 32% to EUR100.3 million from EUR76.2 million. Finance costs rose 8.8% to EUR24.1 million from EUR22.2 million.
More positively, revenue from continuing operations jumped 29% to EUR284.8 million from EUR220.2 million.
Revenue per available room increased 23% to EUR109.41 from EUR88.61, while the average room rate improved to EUR139.50 from EUR126.89.
Thanks to the "very successful" start to 2023, Dalata said it is optimistic for the remainder of the year.
It currently expects like-for-like group RevPAR of EUR140 for the July/August period, an increase of 5% compared to the same period in 2022 and 25% higher than the EUR112.09 LfL RevPAR achieved in the first half of 2023.
"Our performance year to date has been exceptional, thanks to all of our teams throughout the business, whose commitment and dedication are evident in the results announced today and in the continuous delivery of our ambitious growth strategy," said Chief Executive Dermot Crowley.
"The group has delivered a record set of financial results and reported excellent customer and employee satisfaction scores. We have responded effectively to the challenge of rising costs through cost and revenue management initiatives, a focus on reducing utility consumption and adopting innovation across all areas of the business."
In response, Dalata declared a 4.0 euro cent interim dividend, saying this was in line with the progressive dividend policy it had announced with its 2022 results back in February. Dalata hadn't paid a dividend since withdrawing its final dividend for 2019 amid the outbreak of Covid-19 in early 2020.
Shares in Dalata were down 1.7% at 351.82 pence on Tuesday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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Dalata Hotel Gp (DAL)