2017 Interim Results ISE: DHG LSE: DAL - Dalata Hotel Group
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2017 Interim Results ISE: DHG LSE: DAL
Disclaimer
The presentation contains forward looking statements. These statements have been made by the Directors in
good faith based on the information available to them up to the time of their approval of this presentation.
Due to inherent uncertainties, including both economic and business risk factors underlying such forward
looking information, actual results may differ materially from those expressed or implied by these forward
looking statements. The Directors undertake no obligation to update any forward looking statements
contained in this presentation, whether as a result of new information, future events or otherwise.
2017 H1 Results
Page 2
H1 2017 | Contents
Key Value Drivers
H1 2017 Financial Performance
Business Review
Driving Portfolio Growth
Outlook
Appendices
2017 H1 Results
Page 3
H1 2017 | Key Value Drivers
Dublin and Regional Ireland markets continue to show strong RevPAR growth. UK markets enjoying strong
RevPAR growth in 2017
Leveraging scale and decentralised operating model across Ireland and into the UK
• Outperformed market RevPAR growth in all cities with exception of Cork
• Converted additional revenue strongly to the bottom line – Segments EBITDAR margin up from 38.7%
to 41.0%
Pipeline of additional 1,280 rooms on track to open in 2018 – on time and within budget. Significant
earnings boost for 2019 and 2020
Continuing to deliver on growth strategy
• 3 hotels bought in Ireland at combined initial yield of 7.7%, hotel sold in UK at initial yield of 4.85%
• Exciting pipeline of acquisitions, refurbishments and development opportunities
• Announcing today a new Clayton hotel in Manchester to open in 2020
• Controlled and disciplined growth strategy with low gearing levels
Modern well invested, well located properties delivering strong free cashflows
2017 H1 Results
Page 4
H1 2017 Financial Performance ISE: DHG LSE: DAL
Dalata | Driving Sustained Strong Performance in H1 2017
RevPAR Revenue Adjusted EBITDA1 Adjusted Diluted EPS2
€ €m €m €
100 200 60 0.20
+10% +24% +27% +41%
180 50
90 0.15
160 40
80 0.10
140 30
70 0.05
120 20
60 100 10 0.00
2016 2017 2016 2017 2016 2017 2016 2017
1. Excludes the effects of depreciation, revaluation movements and items considered by management to be non-recurring or unusual in nature. Acquisition costs have been excluded given the scale of acquisitions in 2016
2. Excludes the tax adjusted effects of revaluation movements and items considered by management to be non-recurring or unusual in nature. Acquisition costs have been excluded given the scale of acquisitions in 2016
2017 H1 Results
Page 6
Dalata | 3 Core Business Segments
Dublin
14 Hotels
3,699 Rooms
H1 2017 RevPAR: €96.36(+8%)
57% 60% 48%
Group Revenue Segment EBITDA EBITDAR Margin
Regional Ireland
12 Hotels
1,643 Rooms
H1 2017 RevPAR: €60.93(+9%)
21% 15% 24%
Group Revenue Segment EBITDA EBITDAR Margin
UK *
7 Hotels
1,557 Rooms
H1 2017 RevPAR: £63.72(+15%)
21% 23% 38%
Group Revenue Segment EBITDA EBITDAR Margin
* Excludes Croydon Park Hotel
Information as at period end
2017 H1 Results
Page 7
Dalata | Doing what we promise
Key Financials €’000 6 Months 6 Months
8.3% increase in ARR drives 9.8% RevPAR growth Ending Ending
30th June 30th June
Strong conversion of incremental sales leads to 2017 2016
segments EBITDAR margin increasing from 38.7% to Revenue 161,801 130,050
41.0%
Segments EBITDAR 66,310 50,350
Rent up due to Clayton Hotel Burlington Road, full
period impact of the Gibson Hotel and performance Rent (16,342) (11,704)
rents, partially offset by ownership of Clayton Hotel Segments EBITDA 49,968 38,646
Cardiff for most of period and purchase of Maldron
Hotel Cork freehold in September 2016 Central overheads (5,561) (3,835)
Continued investment in central team and systems Other income / costs 1,113 (3,819)
reflected in central overheads EBITDA 45,520 30,992
See note on depreciation in appendices (page 32) Depreciation (7,631) (7,165)
Net finance costs are net of €663k of interest Net finance costs (5,182) (5,661)
capitalised to property, plant and equipment
Profit before tax 32,707 18,166
KPIs 6 Months Ending 6 Months Ending Profit after tax 28,347 15,525
30/6/2017 30/6/2016
EPS (€) 0.15 0.08
Occupancy 80.2% 79.0%
Average Room Rate (€) 102.63 94.78
Adjusted EBITDA 44,891 35,348
RevPAR (€) 82.27 74.90 Adjusted diluted EPS (€) 0.15 0.11
2017 H1 Results
Page 8
Dalata | Adjusted EBITDA Bridge
€m
60
4.2 1.0
50 1.7
0.1 44.9
2.3
4.5 1.4
40 35.3
30
20
10
0
EBITDAR margin increases from 38.7% to 41.0% due to strong conversion of additional revenue to
EBITDAR
2017 H1 Results
Page 9
Dalata | Continuing to Outperform Market RevPAR growth
22.6% 22.9%
19.1%
17.0%
13.6%
13.1%
11.2% 11.5%
10.9%
10.3%
9.7%
8.8% 8.6%
8.2%
7.2%
6.5%
1.8%
-1.1%
Dublin Galway Limerick Cork Belfast Leeds Manchester Cardiff London
(excl Clayton Hotel
Burlington Road1)
Dalata Market Source: Market data – STR; Trending.ie
Very strong performance versus market in Dublin, London and Regional UK cities
Behind market in Cork due to of impact of refurbishment works in Q1 and rebranding at Clayton Hotel Cork City
Very strong six months in London driven by exceptional performance at Clayton Hotel Chiswick
1. Clayton Hotel Burlington Road is excluded from the ‘like for like’ analysis because its performance in the transitional period since its November 2016 acquisition has a disproportionate impact as a
result of its size
2017 H1 Results
Page 10Dublin | Half Year Performance
Dublin market continues to perform strongly (+7.2%) All figures €’000 6 Months Ending
30/6/2017
6 Months Ending
30/6/2016
due to the combination of strong demand and limited
Revenue
new supply. STR now forecasting 7% increase in
RevPAR for 2017 Rooms 64,529 48,229
Food and beverage 22,012 15,704
Dalata outperformed market with RevPAR up 11.2%
Other 6,172 4,371
excluding Clayton Hotel Burlington Road1
Total revenue 92,713 68,304
Food and beverage revenue up 3.1% for the year on a EBITDAR 44,256 31,519
‘like for like’ basis. Clayton Hotel Burlington Road Rent (14,212) (8,590)
added €4.9m to food and beverage revenue
EBITDA 30,044 22,929
Rent up as a result of addition of Clayton Hotel EBITDAR % 47.7% 46.1%
Burlington Road, full year impact of Gibson Hotel and 6 Months Ending 6 Months Ending
increased performance rents at Ballsbridge Hotel and KPIs Inc Burlington Rd 30/6/2017 30/6/2016
Maldron Hotel Dublin Airport Occupancy 83.1% 82.4%
Average Room Rate (€) 116.02 108.38
EBITDAR margin up to 47.7% due to 74% conversion
RevPAR (€) 96.36 89.30
of additional sales to EBITDAR on a ‘like for like’ basis
6 Months Ending 6 Months Ending
KPIs Exc Burlington Rd 30/6/2017 30/6/2016
Occupancy 84.4% 82.8%
1. Clayton Hotel Burlington Road is excluded from the ‘like for like’ analysis because its performance in the
Average Room Rate (€) 112.52 103.07
transitional period since its November 2016 acquisition has a disproportionate impact as a result of its size
RevPAR (€) 94.91 85.34
KPIs include full six month performance of other Dublin acquisitions regardless of when acquired
2017 H1 Results
Page 11Regional Ireland | Half Year Performance
All figures €’000 6 Months 6 Months
Ending 30th Ending 30th
Cork, Limerick and Galway markets continue to June 2017 June 2016
perform well on the back of strong demand from
Revenue
domestic consumers and FDI companies. Outlook
remains positive through combination of limited Rooms 18,094 14,548
supply pipeline and strong demand
Food and beverage 11,987 10,940
RevPAR increased by 9.2%. Number of hotels Other 3,971 3,251
benefitting from impact of refurbishment in previous Total revenue 34,052 28,739
years such as Clayton Hotel Silver Springs, Maldron
Hotel Cork and Clayton Hotel Limerick EBITDAR 8,048 6,209
Rent (672) (1,119)
Significant increase in EBITDAR margin to 23.6% due
EBITDA 7,376 5,090
to 86.3% conversion of incremental revenue on ‘like
for like’ basis EBITDAR % 23.6% 21.6%
KPIs 6 Months 6 Months
Ending 30th Ending 30th
June 2017 June 2016
Occupancy 71.5% 69.3%
Average Room Rate (€) 85.17 80.46
RevPAR (€) 60.93 55.79
KPIs include full six month performance of all Regional Ireland hotels
regardless of when acquired
2017 H1 Results
Page 12UK | Half Year Performance
All figures £’000 6 Months 6 Months
Other than Leeds, all other markets in the UK have Ending 30th Ending 30th
June 2017 June 2016
performed strongly during the period
Revenue
RevPAR for the region up 14.6% Rooms 19,987 16,952
Clayton Hotel Chiswick had exceptional period with Food and beverage 6,810 5,995
RevPAR up 20.5% as benefits of redevelopment Other 2,389 1,782
project are delivered
Total revenue 29,186 24,729
Food and beverage sales increased by 10.2% EBITDAR 11,103 8,811
(excluding Croydon Park Hotel) driven by
Rent (1,255) (1,554)
exceptional performance of Clayton Hotel Chiswick
(+52.6%) EBITDA 9,848 7,257
EBITDAR % 38.0% 35.6%
Significant increase in EBITDAR margin from 35.6%
to 38.0% KPIs 6 Months 6 Months
Ending 30th Ending 30th
June 2017 June 2016
Occupancy 82.0% 77.2%
Average Room Rate (£) 77.71 72.03
RevPAR (£) 63.72 55.60
KPIs include full six month performance of all UK hotels regardless of
when acquired (except Croydon Park Hotel which was sold on 30 June
2017 and is excluded from the KPIs)
2017 H1 Results
Page 13Dalata | Strong Balance Sheet providing covenant for growth
All figures €m 30 June 31 Dec Objective is to maintain a strong balance sheet with
2017 2016 appropriate level of gearing, leading to a strong covenant
for potential landlords/investors
Non-current assets
Tangible assets 829.5 825.7 Decrease in Net Debt to Amended EBITDA to 1.91x from
2.40x
Goodwill and intangibles 54.7 54.3
Other 11.7 6.6 Tangible assets broadly in line with year-end as impact of
Current assets acquisitions, development costs and revaluation is
counterbalanced by depreciation, impact of fall in value of
Trade receivables, 25.9 17.7 Sterling and disposal of Clayton Hotel Cardiff
inventory and other
Cash 88.9 81.1 £174.4m (€198.3m) of borrowings in Sterling as a natural
hedge against value of Sterling assets and Sterling
Total assets 1,010.7 985.4 denominated earnings
Undrawn facilities of €52.2m at period end. RCF facilities
Equity 652.8 620.4
inceased post period end by €50m bringing undrawn
Bank loans 267.5 280.4 facilities to €102.2m
Trade and other payables 58.6 53.1
Combination of strong cashflow, cash balance, undrawn
Other non current liabilities 31.8 31.5 facilities and low gearing provides a Balance Sheet to
Total equity and liabilities 1,010.7 985.4 comfortably fund current expansion plans
2017 H1 Results
Page 14Dalata | Strong Cashflow to Fund Pipeline and Further Growth
All figures €m 6 Months 6 Months
Illustration of what the business can Ending Ending
generate in cash to fund debt repayment, 30th June 30th June
acquisitions, development activity etc 2017 2016
Adjusted EBITDA 44.9 35.3
Maintenance capex averages 4% of turnover
Net cash from operating activities 37.5 30.2
Development capital expenditure is excluded
as it either relates to new build hotels, Adjusting cash items 1 0.1 3.4
extensions, redevelopment or items
identified on acquisition required to bring
Interest on bank loans (excluding fees) (4.5) (4.4)
hotels to brand standard
Maintenance Capital Expenditure (6.5) (5.2)
Cash conversion is higher in 2016 due to
impact of Clayton Hotel Burlington Road Cash generated to fund debt
rental prepayment in addition to higher repayment, acquisitions and 26.6 24.0
2017 tax payments. Excluding the impact of development activity
the once off Clayton Hotel Burlington Road
rental prepayment conversion would have Cash conversion 59% 68%
been 64%
1 Stockexchange listing costs of €1.4m in H1 2016, acquisition costs of €0.1m (H1
2016: €2m)
2017 H1 Results
Page 15Business Review ISE: DHG LSE: DAL
Dalata | Building a Leading Hotel Owner/ Operator
Number Owned and Leased Rooms
Leading hotel owner and operator in Ireland and and Hotels
UK with 35 leased/owned hotels as at 5 September
2017
8,000 40
34 35
7,000 35
26 owned, 9 leased and 3 managed hotels under 6,000 27 30
two core brands
5,000 25
Proven, experienced management team with a
4,000 15 20
strong decentralised structure 3,000
12 15
2,000 10
New platform with best-in-class operating systems
and processes 1,000 5
0 0
2013 2014 2015 2016 2017
Strong balance sheet covenant established for next
Room numbers Number of hotels
phase of growth
2017 H1 Results
Page 17Dalata | “The Difference with Dalata”
Our decentralised operational approach
Dalata’s decentralised structure is core to our management philosophy
Hotel General Managers are critical players – we continually develop them
A strong multi-functional team at the centre setting direction, seeking growth opportunities,
supporting the hotels, and reporting to our stakeholders
We grow our own – training and development a major focus as there is a need to have a strong pipeline
of key people coming through
Having people we know taking up key roles de-risks our business
We focus on what we are good at
Operating 3 star and 4 star modern well-maintained hotels in cities with strong mix of corporate and
leisure demand
Executing transactions to grow our owned and leased portfolio
Identifying strong locations and developing new hotels on them
Decentralised revenue management – our revenue managers are informed by systems but always make
the decisions themselves
Investing in systems to support our approach to cost control
Owner/Operator Model
Control of our brand standards
Security of tenure allows us to build a central team to effectively support and scale our decentralised
structure
2017 H1 Results
Page 18Dalata | Refurbishment Programme
Over €7.5 million invested in refurbishment of 752 rooms in H1 2017. Over €22.3 million on
refurbishment of 2,133 rooms since 2015
Forecast €1.8 million of expenditure expected in H2 2017 on refurbishment of 160 rooms
Standardised room templates for Clayton and Maldron brands driving investment efficiencies
Improved product contributing to higher ARR in hotels such as Clayton Hotel Chiswick, Clayton Hotel
Leeds, Maldron Hotel Cork, Clayton Hotel Silver Springs and Clayton Hotel Leopardstown
Rooms Refurbished 2015 2016 2017 Total
373 138 210 721
260 610 702 1,572
2,293
2017 H1 Results
Page 19Dalata | Investing in Technology
Background
Dalata comprises primarily a portfolio of hotels acquired in multiple separate transactions since mid 2014
There were multiple different systems platforms at the various hotels
Alkimii payroll management system rolled out across the group in 2016
Project Evolve - 2017/2018
Objectives of project are to (i) streamline and consolidate processes, (ii) increase controls, (iii) deliver
efficiencies and (iv) improve the timeliness of management reporting
There are three key components:
A single accounting platform Sage 200 was introduced across all units in July 2017
Procure Wizard, a new procurement system will be implemented over next six months
Shared Service Centre has been established in Cork to manage routine administration work in a highly
efficient manner supported by the new technology
Property Management Systems and Revenue Management
Roll out of Opera Cloud PMS to non Opera PMS Hotels by end of Q1 2018, Opera Cloud to replace Opera at
other Hotels within the next 3 years
Web based group database housed in Oracle’s data centre
Real time rates and inventory integration to all main distribution channels
Implementation of IDEAS Revenue Management System to aid the Revenue manager in decision making by
providing powerful analytics in selected hotels
2017 H1 Results
Page 20Dalata | Connecting with our customers
Extensive research completed on brand websites
Key items raised: difficult customer journey when booking, perception of better value being available
on OTA sites and brand positioning/imagery
To address the weaknesses identified:
All hotels will move onto the one booking platform with a redesign of the customer booking
journey
Book direct initiative ‘Click on Clayton’ to be introduced this month and Maldron to follow in
early 2018
Triptease Price Widget showing rates online of OTA’s
Review of Brand positioning, new creative platform for advertising campaigns
2017 H1 Results
Page 21Driving Portfolio Growth
Drive Portfolio Growth | Ireland and UK
Ireland: Portfolio Objectives
Complete existing development pipeline of 779 rooms and deliver on earnings potential when they
open in 2018
Reach the optimum market share in each of the key urban centres – Dublin, Cork, Limerick and Galway
UK: Portfolio Objectives
Complete existing development pipeline of 502 rooms and deliver on earnings potential when they
open in 2018
Grow our presence in the UK through leases and ownership
Number of major regional cities that meet our criteria for operating a successful hotel
Potential for a number of hotels in each city
Continue to exploit the value of balance sheet covenant to secure very competitive rental levels
Assess opportunities to increase numbers of rooms or facilities at existing hotels
2017 H1 Results
Page 23Dalata | Over 1,580 new rooms across Ireland and UK
Property New Extension Rooms Planning Construction Completion
Dublin
Granted Started
2 New Hotels Clayton Hotel Charlemont x 188 x x Q3 2018
3 Extensions Maldron Hotel Kevin Street x 138 x x Mid 2018
Clayton Hotel Ballsbridge x 31 x Q3 2018
551 rooms Clayton Hotel Dublin Airport x 141 x x Q2 2018
Maldron Hotel Parnell Square x 53 x Q4 2018
Regional Ireland Property New Extension Rooms Planning Construction Completion
1 New Hotel Granted Started
Maldron Hotel South Mall, Cork x 165 x Q4 2018
1 Extension Maldron Hotel Sandyroad, Galway x 63 x Mid 2018
228 Rooms
UK Property New Extension Rooms Planning Construction Completion
1 New Owned Hotel Granted Started
Maldron Hotel Belfast City x 237 x x Q2 2018
2 New Leased Hotels Maldron Hotel, Newcastle* x 265 x x Q4 2018
802 Rooms Clayton Hotel, Manchester* x 300 Mid 2020
*35 year operating lease
2017 H1 Results
Page 24Dalata | Clayton Hotel Manchester
Agreement for lease contracts exchanged
Subject to planning permission
Planning application Q4 2017
Manchester ranks as one of our top target cities
Excellent central location – Portland Street
Local well regarded developer – Property Alliance
Group
Rent Cover Year 3 > 1.8x
Rent per room £8.5k
Target to open mid 2020
2017 H1 Results
Page 25Dalata | Recent Transactions - UK
Clayton Hotel Cardiff
Purchased freehold of hotel for £24m in November 2016
Existing lease had open market rent reviews – passing rent at time was £1.51m
Completed sale and leaseback of hotel in June with M&G Real Estate for £22.1m (retained fixtures and
fittings worth £2.1m) - new rent of £1.15m
Effectively reduced rent by £360k through the two transactions – bought at an initial yield of 5.9% and
sold at yield of 4.85%. Also eliminated uncertain future rent reviews
Croydon Park Hotel
Sold company in June that held leasehold interest in hotel for nominal sum
Hotel La Tour Birmingham
Purchased company that held the freehold interest in the hotel for £31m in July
Sold the freehold for £30m in August to Deka Immoboilien and entered into a 35 year lease at initial
rent of £1.6m per annum
Modern hotel (built in 2012) with 174 rooms, restaurant, bar and extensive meeting/event facilities,
located in the centre of Birmingham
Hotel EBITDAR was circa £1.9m in the year ending 31 March 2017
Have identified significant opportunities to reduce costs and increase revenues
Exploring the potential to add circa 40 rooms
Will rebrand to Clayton in final quarter of this year
2017 H1 Results
Page 26Dalata | Recent Transactions - Ireland
Maldron Hotel Portlaoise
Purchased freehold of hotel for €6.8m
Existing lease had turnover related rent increases – rent was €570k in 2016
Initial yield on transaction of 8%
Clayton Hotel Cardiff Lane and Clarion Hotel Liffey Valley
Completed the acquisition of freehold interest of certain elements of Clayton Hotel Cardiff Lane and
the Clarion Hotel Liffey Valley for €62m in August
Clayton Hotel Cardiff Lane – 167 bedrooms, all public areas and vacant space on ground floor. Existing
rent of €2.5m
Clarion Hotel Liffey Valley – 158 bedrooms and all public areas of 353 room hotel. Segment being
bought generated EBITDAR of €2.5m in 2016
Initial yield on transaction of circa 7.7%
Tara Towers Hotel
Planning application lodged in July to demolish existing hotel and replace with development
comprising 140 bedroom hotel, 70 residential units and a basement car park
Considering options that would result in Dalata either owning or leasing the completed hotel and
residential units developed by a third party
2017 H1 Results
Page 27Outlook
Dalata | 2017 Outlook
Performance of our hotels across all three regions has been strong in July and August
With limited new supply and continued strong demand, the outlook remains positive for our Dublin and
Regional Ireland hotels for the balance of the year
Impact of sterling weakness on UK visitors to Ireland is currently being more than offset by increased
visitor numbers from other markets
Revenue Management strategy of retaining large base of corporate and tour group business results in
our business mix being less reliant on transient customer
Outlook also remains positive for our UK hotels. Sterling weakness continues to attract increased business
into London and NI markets. Regional UK markets continue to perform solidly
Positive EBITDA contributions from the three hotels acquired since the end of the period
Construction continues on our valuable development pipeline with over 1,280 rooms due to open at
different stages of 2018
Exciting pipeline of opportunities for development of new hotels in the UK and Ireland
Continued focus on operational requirements of our hotels through training/development programmes,
investment in technology and interaction with our customers
2017 H1 Results
Page 29Dalata | Investor Day
Tuesday November 7th @ Clayton Hotel Chiswick
Agenda
Time Topic Speaker
8.00am – 8.45am Breakfast available for all attendees
8.45am – 9.00am Welcome and Overview Pat McCann, CEO
9.00am – 9.45am Impact of IFRS 16 (Accounting for Leases) Carol Phelan, Group Head of Financial
on Dalata Reporting, Treasury and Tax
9.45am – 10.15am Overview of Dalata’s Operations in the UK Emma Dalton, Group General Manager (UK)
10.15am – 10.45am Coffee Break
10.45am – 11.15am Overview of Revenue Mgt and Corporate Richard Noakes, Group Revenue Manager – UK
Sales in the UK Richard Coupland, Group Sales Director - UK
11.15am – 12.15pm UK Growth Strategy Dermot Crowley, Deputy CEO – Business
Development and Finance
12.15pm – 1.30pm Lunch Guest Speaker – Robin Rossman, Managing
Director, STR
Questions and Answers with Pat McCann and
Dermot Crowley
2017 H1 Results
Page 30Appendices ISE: DHG LSE: DAL
Dalata | Depreciation Estimates
Background
Dalata comprises primarily a portfolio of hotels acquired in multiple separate transactions since mid
2014 – estimates of remaining useful lives of their component parts were made on acquisition
From 2015 onwards, there has been a significant programme of capital refurbishment. For the majority
of expenditure, 5 year straight line depreciation was applied
Earlier this year, management initiated a comprehensive review of the useful lives of the assets making
up each of the hotels
Approach
Reviewed remaining useful lives of buildings and residual values for each hotel and concluded that they
were materially accurate
For refurbishment projects, broke down to constituent parts and estimated useful lives on line by line
basis based on recent operational experience e.g. air conditioning and bathroom fit out - 12 years; case
goods - 7 years; soft furnishings - 3 years
Impact
Following the more detailed breakdown and analysis of the average useful lives of the various
components within a room refurbishment, the average estimated useful life of a refurbished room
moved from 5 to 8 years, with some variations depending on the nature of the refurbishment completed
Depreciation charge from 2017 onwards will be less than previously guided and is now estimated to be
in the €15m - €16m range
2017 H1 Results
Page 32Dalata | Capitalised Interest
Dalata has significant programme of development for both new hotels and extensions
Accounting standards require interest for borrowings related to the acquisition or construction of a
qualifying asset be capitalised as part of the cost of that asset
The borrowings do not necessarily have to be drawn specifically for the project but can be general
borrowings that could have been avoided if expenditure had not been spent
The weighted average borrowing rate for each of sterling and euro loans, including hedging if applicable, is
used depending on the asset location
H1 2017: €0.7m (2016 not material)
H2 2017 (forecast): €1.0m
Assumes average exchange rate for H2 2017 of 0.92
2017 H1 Results
Page 33Dalata | FX Effects
Sterling exchange rate has significant impact on earnings
Average exchange rate for EBITDA for H1 2017 was 0.8609 (H1 2016: 0.7819)
On a constant currency basis H1 2017 EBITDA would been have €1.0m higher however, interest,
depreciation and tax would also have been higher. As a result Profit After Tax would have been €0.2m
higher
The sterling exchange rate continues to weaken and is trending weaker than those in the second half of
2016 (0.859). If the rates had been at current levels c. 0.92, H2 2016 EBITDA would have been lower by
€0.9m and Profit After Tax would have been €0.2m lower
2017 H1 Results
Page 34Dalata | Market Review – Dublin
Savills forecast net additional 3,750 rooms by 2019
2015 2016 2017 2018
Dublin
Actual 1 Actual1 F’cast F’cast
2500 2,250
Occupancy 82.1% 82.3% 82.6% 83.1%
2000
1500 1,150 ARR 111.92 128.49 136.85 140.08
1000
RevPAR 91.90 105.71 113.09 116.37
500 350
RevPAR %
0 23.0% 15.0% 7.0% 2.9%
Variance
2017 2018 2019
1. 2015 and 2016 numbers differ slightly from those previously reported as STR revised their
numbers
Source: STR Global
Total market size of circa 20,885 rooms
Significant number of rooms expected to open towards the end of 2018 and into 2019 and 2020
Increase in supply expected to be matched by increase in demand from continued economic growth,
increased visitor numbers and growing evidence of office relocations from London to Dublin
7.2% RevPAR growth in H1 2017
2017 H1 Results
Page 35Dalata | Market Review – Regional Ireland and UK
Continuing strong demand from FDIs, domestic
RevPAR Growth 2015 2016 H1 2017
corporate and domestic leisure customers
No increases in supply and very little supply
Cork 9.6% 13.3% 11.5%
pipeline
Continued strong growth in 2017 for all three cities Galway 13.3% 10.7% 8.6%
Limerick 23.4% 16.4% 13.1%
Source: Trending.ie
Very strong RevPAR growth in London versus H1
2016 which was negatively impacted by new supply RevPAR Growth 2015 2016 H1 2017
and impact of terrorism. Weaker sterling appears to
London 1.2% -0.9% 9.7%
be helping grow visitor numbers
Re-opening of Waterfront Centre in mid 2016 Manchester 7.5% 5.7% 1.8%
together with positive impact of weaker sterling on Cardiff 14.2% -1.1% 10.9%
ROI visitors resulted in a very strong period in Leeds 8.1% 3.7% -1.1%
Belfast 11.9% 9.0% 22.9%
Belfast
Mixed performance at three UK regional cities
Source: STR Global
2017 H1 Results
Page 36Dalata | Strong, Complementary Brand Proposition
Maldron is all about providing a fun, relaxed time for all You can always depend on Clayton Hotels to deliver
who arrive through our doors. Our great-value hotels are exactly what you need, whether that’s a weekend
found in convenient locations close to local attractions - away, a family break or an important business meeting.
Brand ensuring there’s always plenty to see and do. With friendly, From the comfort of our bedrooms to the quality of
helpful staff, good food and excellent facilities, it’s the our facilities and the warm, helpful attitude of our staff
Proposition perfect place to enjoy good times with family and friends - every detail is handled with care
Rest assured, it’s a Maldron Where every moment matters
Generally standard rooms, with family and executive rooms
Bedrooms in some locations
Standard, superior and executive rooms
Food and Integrated bar and restaurant in some locations. Simple
Modern bar, restaurant and coffee dock. Food and
beverage offering based on local influences and freshly
Beverage menus made from fresh quality produce
sourced premium ingredients
Conference Meeting room facilities
Extensive choice of modern meeting rooms and events
Facilities facilities
Target Both leisure and corporate with main focus on leisure Focus on corporate and conference midweek. Leisure,
Customers guests and family functions and weddings at weekend
2017 H1 Results
Page 37Dalata | Portfolio as at September 2017
Owned Hotels / Freehold Equivalent Lease Agreements
Hotel Rooms Hotel Rooms
Clayton Hotel Dublin Airport 469 Clayton Hotel Burlington Road, Dublin 502
Clayton Hotel Manchester Airport 365 Ballsbridge Hotel, Dublin 400
Clayton Hotel Leopardstown, Dublin 354 The Gibson Hotel, Dublin 252
Clarion Hotel Liffey Valley (1) 158 Maldron Hotel Dublin Airport 251
Clayton Hotel Leeds 334 Clayton Hotel Cardiff, Wales 216
Clayton Hotel Ballsbridge, Dublin 304 Hotel La Tour Birmingham 174
Clayton Hotel Cardiff Lane , Dublin (2) 304 Maldron Hotel Tallaght, Dublin 119
Maldron Hotel Newlands Cross, Dublin 297 Maldron Hotel Galway (Oranmore) 113
Clayton Hotel Chiswick, London 227 Maldron Hotel Smithfield, Dublin 92
Clayton Hotel Cork City (3) 201 Total 2,119
Clayton Hotel Galway 195
Clayton Hotel Belfast 170
Clayton Hotel Sligo 162
Management Contracts
Clayton Whites Hotel, Wexford 160
Hotel Rooms
Clayton Hotel Limerick 158
Directly with Owners
Clayton Crown Hotel, London 152
Maldron Hotel Belfast International Airport 103
Maldron Hotel Limerick 142
The Belvedere Hotel, Dublin 101
Maldron Hotel Parnell Square, Dublin 129
Shearwater Hotel, Ballinasloe, Co. Galway 104
Maldron Hotel Pearse Street, Dublin 115
Total 308
Tara Towers Hotel, Dublin 111
Clayton Hotel Silver Springs, Cork 109
Maldron Hotel Wexford 108
Maldron Hotel Sandyroad, Galway 104 Summary by Hotel Category Hotels Rooms
Maldron Hotel Cork 101 Owned 26 5,112
Maldron Hotel Derry 93 Leased 9 2,119
Maldron Hotel Portlaoise 90 Mgmt Agreement – Owners 3 308
Total 5,112 Total 38 7,539
(1) Dalata own 158 rooms
(2) Dalata own 190 rooms and lease 114 rooms
(3) Dalata own 194 rooms and lease 7 apartments
2017 H1 Results
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