AGM Statement

RNS Number : 2312L

Dalata Hotel Group PLC

29 April 2020

 

2020 AGM Statement

ISE: DHG  LSE: DAL

Dublin, 29 April 2020  | Dalata Hotel Group plc ("Dalata" or "the Group"), the largest hotel operator in Ireland with a growing presence in the United Kingdom, is holding its AGM today at 11:30 am BST at its offices at Burton Court, Burton Hall Drive, Sandyford, Dublin D18 Y2T8.

At the AGM, John Hennessy, Chairman of Dalata, will make the following statement:

"In 2019 we delivered another strong financial performance in terms of earnings growth and cash generation and ended the year with a very strong balance sheet. We also demonstrated our resilience and ability to overcome challenges, which is very important now as we face the very considerable challenges posed by the Covid-19 pandemic.

The sudden onset of Covid-19 has had a very significant impact on our business. For the first quarter of 2020, RevPAR on a 'like for like'¹ basis decreased by 24.3% at our Dublin hotels, 14.0% at our Regional Ireland hotels and 18.6% at our UK hotels. Adjusted EBITDA for the first quarter of 2020 was €17.7 million. These figures include 2 months of normal trading before the effects of the global pandemic were first felt in our business.  Our results for subsequent periods will reflect the fact that currently our hotels are either temporarily closed or operating at significantly reduced capacities in line with guidelines issued by the Irish and UK Governments.

It is not yet known when the current restrictions on travel and movement will be lifted in Ireland and the UK. The outlook for the remainder of the year remains uncertain as a result.

To date, we have implemented several measures to mitigate the financial consequences of the impact of Covid-19 and to maintain our strong liquidity.  We announced last week, that we have agreed the sale and lease back of Clayton Hotel Charlemont in Dublin to Deka Immobilien for a consideration of €65 million. This transaction, which we completed on 24 April, strengthens our considerable cash resources during the current Covid-19 crisis and ensures that financially we are in a strong position to trade through the crisis. We have significant financial headroom and will be in compliance with covenants in June 2020.

The essence of the business of Dalata is the development, acquisition and operation of hotels.  The current situation has caused large parts of that business to be shut down for the moment.  This is a very challenging set of circumstances for the entire Dalata team.

I am pleased therefore to be able to reassure shareholders that our people are coping very well with this unprecedented situation.  We have a strong management team that has a proven track record of dealing with major shocks and challenges over the last 20 years, and they are working hard to navigate our business through these difficult times. Our exceptional culture is showing through in the dedication of our teams and the manner in which they are supporting each other and responding to the needs of the communities in which they operate.  We are keeping in close touch with the members of our teams whom we cannot employ at present, with a view to re-engaging them as soon as we can. 

[1] 'Like for like' performance statistics include a full three months performance of all hotels regardless of when acquired. In Dublin, Clayton Hotel Burlington Road is excluded due to the significant renovations on-going which impacts the hotel's ability to operate on a normal basis.

We are also using this time to work on plans to make our operations more efficient and effective, and to look for growth opportunities that may arise out of the crisis.

Our Board, which comprises directors with considerable experience of difficult times in business, is meeting frequently, supporting our management teams, helping to guide the business, ensuring we continue to comply with the requirements of good governance, and keeping the interests of shareholders and all of our stakeholders in mind at all times.

In summary, we are protecting the business, our people and our financial strength, and we intend to continue to do this as long as is needed so that we can position ourselves to emerge safely and strongly when the current crisis abates and our hotels can re-open."

-ENDS-

AGM

The AGM will be held as a closed meeting and shareholders will not be able to attend in person. While Dalata regret the need to take this step, it is necessary to comply with the advice from the Irish Health Service Executive (HSE) on public gatherings and social distancing and to safeguard our shareholders' and employees' health.   Members may listen to the proceedings of the meeting remotely by teleconference and later today the results of the resolutions relating to the AGM will be published.  All details relating to the AGM are contained in the company's RNS announcement on 20 April 2020.

The teleconference can be accessed using the contact details below.

· From Ireland dial: [phone]

· From the UK dial: [phone] 0804

· From the USA dial: 631 913 1422

· From other locations dial: [phone]

Participant PIN code: 44216336

About Dalata

Dalata Hotel Group plc was founded in August 2007 and listed as a plc in March 2014. Dalata has a strategy of owning or leasing its hotels and also has a small number of management contracts. The Group's portfolio now consists of 29 owned hotels, 12 leased hotels and three management contracts with a total of 9,208 bedrooms. In addition to this, the Group is currently developing 11 new hotels and has plans to extend two of its existing hotels, with a total of 2,871 bedrooms due to open over the next three years. This will bring the total number of bedrooms in Dalata to over 12,000. For the full year 2019, Dalata reported revenue of €429.2 million and a profit after tax of €78.2 million. Dalata is listed on the Main Market of Euronext Dublin (DHG) and the London Stock Exchange (DAL). For further information visit: www.dalatahotelgroup.com.

 

Contacts

Dalata Hotel Group plc	Tel [phone]
Pat McCann, CEO	[e-mail]
Dermot Crowley, Deputy CEO, Business Development & Finance
Sean McKeon, Company Secretary and Head of Risk and Compliance
Joint Company Brokers
Davy: Anthony Farrell	Tel [phone]
Berenberg: Ben Wright	Tel [phone]
Investor Relations and PR | FTI Consulting	Tel [phone]
Melanie Farrell	[e-mail]

 

END

 

 

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