Record growth as hotels bounce back

The hotel market is celebrating a strong 2023, with hotel groups Dalata and PPHE both posting record results for the year ended 31 December. Dalata, Ireland’s largest hotel operator, saw revenue increase by 18% year-on-year to €607.7m (£520m) in 2023. Revenue per available room, a key indicator of performance for hotels, was up by 12% to €114.67. The firm has been expanding the business over the past year, investing some €156m in new assets, giving it a pipeline of more than 1,500 bedrooms. UK bedrooms are expected to top 5,000 by the end of 2024, up by 28% since the end of 2022. Dalata said it had “considerable firepower potential” from its cash flow to invest in further opportunities. Chief executive Dermot Crowley said: “We recognise the power inherent in our brands, and through focus and efforts, we are unlocking that power. As we grow our scale and geographical footprint, enhancing our brands becomes more important for maximising our commercial potential.” He added: “The group remains optimistic in its trading outlook for 2024, supported by future demand indicators across our markets, including growing air traffic forecasts and strong event calendars for the remainder of the year. We remain attentive to the macroeconomic backdrop and geopolitical environment for events, which could impact the business.” At European hotel group PPHE, revenue was up by 25.6% over the year to £414.6m, with revPAR up by 25.5% to £120.70. The group, which this month opened an art’otel at Battersea Power Station, SW8, said it was on track to complete its £300m-plus development pipeline in the first half of this year. That pipeline includes hotels in London’s Hoxton, Rome in Italy and its first Radisson RED-branded hotel in Belgrade, Serbia. Looking ahead, PPHE said it expected cost inflation to remain in 2024, but it would continue to be manageable. President and chief executive Boris Ivesha said: “2024 is set to be a very exciting year for the group, as we are set to open our art’otel London Hoxton and art’otel Rome Piazza Sallustio, and we are able to welcome ever-increasing numbers of guests. The new year has started well and has seen a continuation of our strong momentum, which supports the board’s confidence in the group’s outlook.”