Full Year 2024 Dalata Hotel Group PLC Earnings Call Transcript
Key Points
- Dalata Hotel Group PLC (FRA:DHG) announced a strong set of results for 2024, with adjusted EBITDA up 5% to EUR234.5 million.
- The company successfully refinanced its debt facilities, increasing their overall size by 20%, demonstrating a strong cash position with EUR365 million of cash and undrawn facilities.
- Dalata Hotel Group PLC (FRA:DHG) achieved a like-for-like hotel EBITDA margin of 40.9%, maintaining strong productivity gains despite market headwinds.
- The company announced a new lease agreement for a 256-bedroom Clayton Hotel in Edinburgh, expanding its presence in a promising hotel market.
- Dalata Hotel Group PLC (FRA:DHG) has a robust growth strategy with a target of achieving 21,000 new rooms by 2030, supported by a strong management platform and a culture of innovation.
- The company's like-for-like hotel EBITDA margin declined from 42.3% to 40.9% due to increased labor costs and market challenges.
- Dalata Hotel Group PLC (FRA:DHG) faces significant wage pressures, with minimum pay rates increasing by 10% in the UK and over 12% in Ireland.
- The Dublin market experienced a challenging year with RevPAR slightly declining due to new supply and increased VAT rates.
- Free cash flow fell back in 2024 due to specific reasons, including the timing of large working capital releases.
- The company is exploring strategic options, including a potential sale, which introduces uncertainty about its future direction.
Good day, and thank you for standing by. Welcome to the Dalata Hotel Group PLC 2024 full-year results conference call and webcast. (Operator Instructions)
Please note that today's conference is being recorded. I would now like to turn the conference over to your first speaker, Mr. Dermot Crowley, CEO. Please go ahead.
Thank you, and good morning, everyone. And thank you for joining us today as we announce our full-year results for 2024. I am joined by our Deputy CEO, Shane Casserly; and our CFO, Carol Phelan. As you will have seen, we released a second announcement this morning, on which I will now give you some background.
The Board have unanimously decided to undertake a strategic review to explore the various strategic options available to optimize capital opportunities for the group and to enhance value for shareholders. The options will include, but not be limited to, continuing the group's existing strategy, further actions to improve shareholder value,
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