Sale of Clayton Hotel Charlemont strengthens Dalata cash resources

RTE news is reporting that Dalata Hotel Group has said that the sudden onset of Covid-19 has had a very significant impact on its business and the outlook for the rest of the year remains uncertain.

In a statement issued ahead of its AGM today, Dalata said that revenue per available room (RevPAR) fell by 24.3% at its Dublin hotels, 14% at its regional Ireland hotels and 18.6% at its UK hotels. 

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Adjusted EBITDA for the first quarter of 2020 was €17.7m and the hotel group said these figures include two 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," the company said.

"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," it added.

Last week Dalata agreed the sale and lease back of Clayton Hotel Charlemont in Dublin to Deka Immobilien in a deal worth €65m. 

"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," the company said. 

"We have significant financial headroom and will be in compliance with covenants in June 2020," it added.

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