2021 FULL YEAR RESULTS - A TIME TO LOOK FORWARD - Dalata Hotel Group
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2021 FULL YEAR RESULTS A TIME TO LOOK FORWARD
CONTENTS
Sustained Positive Progress 3
Recovery Underway 4
FY 2021 Financial Review 9
Growth Strategy 16
Sustainability 23
Outlook 27
Appendices 29
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.
2 | Dalata FY 2021 Results
SUSTAINED POSITIVE PROGRESS
Trade recovered Position of Driving forward
strongly in H2 2021 strength sustainably
2021 Revenue €192.0m Engaged people – always our Strong pipeline of over 2,000
(H2: €152.4m) greatest asset rooms
* * *
2021 Adjusted EBITDA €63.2m Retained core teams throughout Two new hotels opened so far in
(H2: €61.8m) pandemic 2022, with four more opening in
* * coming months
Business open from end Q2 and Robust, conservatively geared *
fully operating with stable teams balance sheet - €1.2bn hotel Secured our first hotel in
* assets, Net Debt to Value1 24% Continental Europe in February
H2 2021 delivered Group * *
RevPAR1 at 67% of H2 2019 levels Strong liquidity - cash and Developed an ESG framework
* undrawn facilities of €298.5m that is core to our business
Trade recovered quickly post * strategy
Omicron - Group RevPAR1 Young, well invested *
for February 2022 was 91% of portfolio Innovative in meeting challenges
February 2019 and responding to the new
environment post
Pandemic
Portfolio Strong platform for Ambitious for further growth;
generating cash recovery and growth capitalising on our
enhanced reputation
3 | Dalata FY 2021 Results 1 Analysis is prepared on a like for like hotels – see glossary on slide 32 for definition
Clayton Whites Hotel, Wexford RECOVERY UNDERWAY Slide: Slide I 4
REOPENING LED WAY TO RECOVERY IN H2
2021 occupancy more resilient than in previous periods of restrictions
Closing gap on ARR towards end of 2021
By November, before the
140 Our hotels fully re-opened in May 2021 (UK) and June 2021 (Ireland) onset of Omicron, RevPAR
120 was 78% of 2019 levels
(ARR at 97%, occupancy at
100 Following the reopening, 80%) as events and
July 2021 RevPAR reached
RevPAR (€)*
42% 22% domestic corporate
80 58% of 2019 levels (ARR at business returned
90%, occupancy at 65%)
60
40
20
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RevPAR 2019 RevPAR 2020 RevPAR 2021
Strong recovery in ‘like for like’ F&B revenue in Regional Ireland and UK
100%
F&B revenue as % of
80%
2019 levels *
60%
40%
20%
0%
Q1 2021 Q2 2021 Q3 2021 Q4 2021
Dublin Regional Ireland UK £
5 | Dalata FY 2021 Results
* Analysis is prepared on a like for like hotels – see glossary on slide 32 for definition
STRONG REGIONAL RECOVERY
Variation in regional recoveries - international corporate not yet returned to cities
100%
90%
Occupancy as % of
80%
2019 levels*
70%
60%
50%
40%
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
Restrictions re- All restrictions on
Staycations drive demand as
Return of domestic imposed to curb hospitality relaxed from
hotels re-open in May (UK)
corporate demand spread of Omicron in end of January in
and June (ROI)
December ROI and UK
Continued to maximise rate in periods of strong demand
140%
ARR as % of 2019 levels*
120%
100%
80%
60%
40%
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
Dublin Regional Ireland London Regional UK & NI
6 | Dalata FY 2021 Results
* Analysis is prepared on a like for like hotels – see glossary on slide 32 for definition
POSITIVE RECOVERY BACKDROP
Positive economic forecasts for UK and Ireland Continued FDI2 job growth
Source: Central Bank of Ireland (Ireland, September 2021), ONS (UK 2021) Source: IDA Ireland
Statista (UK 2022f-2024f, January 2022) ‘000
7.5% 300 275.4
6.0% 250 233.8
5.2% 191.7
4.7% 200
3.5% Up 44%
3.3% 150
since
2.1% 100 2015
1.3%
50
0
2021 2022f 2023f 2024f 2015 2016 2017 2018 2019 2020 2021
Real Modified GNI growth¹ - Ireland GDP growth - UK Total numbers employed in IDA assisted foreign-owned companies in Ireland
Strong correlation between Dublin RevPARs and airport passenger numbers
Source: CSO, STR Source: Eurocontrol (October 2021), STR (November 2021)
10,000 160
Passenger numbers (’000’s)
120% 100% 98% 99% 101%
Recovery as % 2019 levels
140 86%
8,000 100%
120 102%
80% 100% 97%
RevPAR (€)
6,000 100 87%
80 60% 41% 43%
66%
4,000 60 40%
40 20%
2,000 30%
20 0% 23%
0 0 2019 2020 2021 2022f 2023f 2024f 2025f
Q117
Q115
Q315
Q116
Q316
Q317
Q118
Q318
Q119
Q319
Q120
Q320
Q121
Q321
Eurocontrol estimate flight traffic - Ireland (Base scenario)
No. Monthly passengers RevPAR STR RevPAR - Dublin
1 RealModified GNI measures the size of the Irish economy by excluding Globalisation effects,
7 | Dalata FY 2021 Results adjusted to remove the effects of inflation (see glossary on slide 32)
2Foreign Direct Investment. IDA (Industrial Development Authority) Ireland’s main objective is to
encourage investment into Ireland by foreign-owned companies
READY TO FACE CHALLENGES
Dalata is well positioned
Payroll1: Increases given in line with
Focus on innovation
minimum wage increases in both
jurisdictions since 2019. Brought Investment in technology
Inflationary Consistently strong cost control
forward April 2022 UK national living
pressures post wage increase to November 2021 Excellent decentralised teams to optimise pricing and
pandemic Electricity/gas2: Market is very volatile distribution
given geopolitical backdrop ESG targets reducing energy consumption
F&B and linen3: Seeing increases on
certain lines
Modern, well invested portfolio with external safety
accreditation
Awaiting return of international Experienced, stable teams – ready to respond to
Return of corporate travel changing customer demands
international Expect travel to be impacted due to Communicating our sustainability journey and
climate concerns and use of technology credentials to meet corporate needs
corporate demand to replace some face to face meetings
Demonstrated ability to react to changing customer
demands in H2 2021 - targeted different market
segments to offset reduced international travel
Increased employee engagement score at our hotels
Reputation as great place to work and develop (staffed 3
Tightening of labour market – newly opened hotels between Q3 2021 and Q1 2022)
particularly evident in UK Provide career development and upskilling opportunities
Labour
shortages Stable, engaged workforce makes it easier to recruit and
retain talent
Awarded one of the Best Places to Work in Hospitality in
2021 by The Caterer
1 Payroll represented 27% of total revenue in 2019
8 | Dalata FY 2021 Results 2 Electricity/gasrepresented 2.4% of total revenue in 2019
3 F&B purchases and linen comprised 7% and 2% of total revenue in 2019 respectively
Maldron Hotel Dublin Airport FY 2021 FINANCIAL REVIEW Slide: Slide I 9
RECOVERING EBITDA
Group Income Statement Revenue growth of 40.3% growth to €192.0m (44.7% of
Key Financials €million 2021 2020 2019 levels) as business returned strongly following mid
Revenue 192.0 136.8 year re-opening
Segments EBITDAR 75.1 28.9 Despite impact from restrictions reducing business levels
Hotel variable lease costs (0.1) (0.3) significantly, protected employment through use of
government supports
Other income 0.7 0.5
Central costs (10.3) (8.1) Central costs increased as pay restored from January 2021
Share-based payments expense (2.2) (2.3)
for employees and from April 2021 for Directors
Adjusted EBITDA1 63.2 18.7 Net property revaluation gain of €6.8m following the
Net property revaluation movements 6.8 (30.8) valuation of property assets
Net reversal of Other interest and finance costs decreased by €7.2m
0.2 (11.8)
impairments/(impairment charges) primarily due to 2021 accounting gain on debt extension of
Other adjusting items (1.7) (1.8) €2.7m versus accounting loss of €4.3m on 2020
amendment
Group EBITDA 68.5 (25.7)
Depreciation of PPE and amortisation (27.6) (27.1)
Depreciation of RoU assets (19.5) (20.7)
Interest on lease liabilities (24.4) (22.4) Group KPIs (as reported) 2021 2020 2019
Other interest and finance costs (8.4) (15.6) Occupancy 39.7% 30.9% 82.6%
Loss before tax (11.4) (111.5) Average room rate (€) 100.71 88.77 113.14
Loss for the period (6.3) (100.7) RevPAR (€) 40.02 27.45 93.43
Basic loss per share (cents) (2.8) (50.9)
Adjusted basic loss per share1 (cents) (6.4) (27.2)
1 See glossary on slide 32 for definition
10 | Dalata FY 2021 ResultsDUBLIN
€million 2021 2020 2019 Dublin occupancy2 increased to 55% in Q3 and 57% in Q4
Total revenue 75.0 65.2 245.4
93% 94%
EBITDAR 31.0 17.5 119.7 80% 84%
EBITDAR margin 41.4% 26.8% 48.8% 63% 57%
55%
Number of rooms1 4,091 4,488 4,482
24% 27%
14% 13% 19%
Like for Like KPIs2 2021 2020 2019
Q1 Q2 Q3 Q4
Occupancy 37.8% 30.4% 87.7%
2019 2020 2021
Average room rate (€) 92.29 90.76 124.79
RevPAR (€) 34.92 27.62 109.40
Dublin ARR2 increased to €95 in Q3 and €101 in Q4
Covid-19 restrictions limited trade to essential services only
until 2 June. Steady recovery in trade thereafter €133 €136
Following the reopening, July 2021 RevPAR represented 37% €109 €117
€103 €95 €101
of 2019 equivalent levels, increasing to 68% in November €82 €77 €79
€71 €73
(H2 2021: 49% of H2 2019 RevPAR)
Portfolio well positioned to benefit from recovery in
international corporate and leisure travel
Received government support comprising wage subsidies
and grants of €24.2m (2020: €9.1m) and commercial rates Q1 Q2 Q3 Q4
waivers of €5.0m (2020: €3.8m) 2019 2020 2021
1 Includes 9 owned hotels and 6 leased hotels at 31 December 2021 (excludes the Ballsbridge Hotel as the lease matured at the end of 2021)
2 KPIs include full year performance of all hotels except Ballsbridge Hotel as this hotel effectively has not traded since March 2020
11 | Dalata FY 2021 ResultsREGIONAL IRELAND
€million 2021 2020 2019 Regional Ireland occupancy2 of 76% in Q3 and 54% in Q4
Total revenue 53.4 36.3 84.9 89%
81% 76%
EBITDAR 23.4 8.0 24.5 66%
59% 60%
EBITDAR margin 43.7% 22.0% 28.9% 54%
50%
Number of rooms1 1,867 1,867 1,867 32%
25%
16%
10%
KPIs2 2021 2020 2019
Q1 Q2 Q3 Q4
Occupancy 44.7% 36.4% 73.7%
2019 2020 2021
Average room rate (€) 111.69 87.04 98.90
RevPAR (€) 49.89 31.64 72.93 Regional Ireland ARR2 of €127 in Q3 and €109 in Q4,
surpassing 2019 levels
Covid-19 restrictions limited trade to essential services only €127
until 2 June €108 €109
€99 €100 €98
Strong staycation demand provided opportunities to yield on €86 €87 €93
€73 €81 €75
rate during Q3. July 2021 RevPAR represented 111% of 2019
equivalent levels, decreasing to 91% in November (H2 2021:
97% of H2 2019 RevPAR)
Received government support comprising wage subsidies and
grants of €16.5m (2020: €7.2m) and commercial rates waivers
Q1 Q2 Q3 Q4
of €2.3m (2020: €1.7m)
2019 2020 2021
1 Includes 12 owned hotels and 1 leased hotel at 31 December 2021
2 KPIs include full year performance of all hotels
12 | Dalata FY 2021 ResultsUK
£million 2021 2020 2019
UK occupancy2 of 69% in Q3 and 66% in Q4
Total revenue 54.3 31.0 86.7
EBITDAR 17.5 2.9 33.8 88%
83% 81%
EBITDAR margin 32.2% 9.4% 39.0% 71% 69% 66%
58%
Number of rooms1 2,949 2,644 2,600 36%
30%
19%
13% 8%
Like for Like KPIs2 2021 2020 2019
Occupancy 44.5% 30.3% 80.7% Q1 Q2 Q3 Q4
2019 2020 2021
Average room rate (£) 88.63 75.06 88.79
RevPAR (£) 39.48 22.72 71.66 UK ARR2 of £95 in Q3 and £91 in Q4, representing full
recovery to 2019 levels
Covid-19 restrictions impacted trade in H1 2021, with hotels
£91 £93 £95 £91
permitted to fully re-open from May £89
£81 £80 £78
July 2021 UK RevPAR represented 59% of 2019 equivalent £73 £70
£62 £61
levels, increasing to 87% in November
In H2 2021, London RevPAR was 60% of the same period in
2019 and Regional UK and Northern Ireland RevPAR was 92%
Received government grants of £1.9m (2020: £0.1m) and
commercial rates waivers of £3.7m (2020: £3.3m). Furlough Q1 Q2 Q3 Q4
scheme ceased from September 2021 2019 2020 2021
1 Includes 7 owned hotels, 5 leased hotels and 1 hotel which is effectively owned through a 99 year lease at 31 December 2021. Excludes
Clayton Hotel Manchester City Centre which only opened in January 2022
2 KPIs include full year performance regardless of when acquired. Maldron Hotel Glasgow City is excluded as it only opened in August 2021
13 | Dalata FY 2021 ResultsPOSITIVE FREE CASH FLOW
2020
€m
Includes cash inflow of
€13.5m from deferral
of tax liabilities
2021
€m
Free Cash Flow3 of €28.0m in 2021 (H2: €49.0m)
Includes cash inflow from
working capital of €27m driven
partially by net deferral of tax
liabilities (€12.8m)
1 Capital project payments includes development and maintenance capex (2021: €20.0m, 2020: €27.9m); contract fulfilment cost payments (2021: €12.9m, 2020: €8.1); costs
paid on entering new leases and agreements for lease (2021: €3.2m, 2020: €7.2); offset by the receipt of capital grants (2021: nil, 2020: €0.2m).
2 Other primarily includes the effects of foreign currency movements
3 See glossary on slide 32 for definition
4 Cash and undrawn debt facilities subject to minimum liquidity covenant of €50m until 30 March 2023
14 | Dalata FY 2021 ResultsNET DEBT TO VALUE3 OF 24%
All figures €million 31 Dec 2021 31 Dec 2020
Non-current assets €1.2bn of hotel assets in prime locations (weighted
Property, plant and equipment 1,243.9 1,202.7 average capitalisation rate in Dublin of 6.72%)
IFRS 16 right-of-use assets 491.9 411.0 Group’s debt facilities consist of €200m term loan
Intangible assets & goodwill 32.0 31.7 facility (matures Oct-2025) and €364.4m RCF (€304.9m
matures Oct 2025 and €59.5m matures Sept 2023)
Contract fulfilment costs - 22.4
Other non-current assets1 29.4 23.5 Contract fulfilment costs relate to the spend on the
pre-sold residential element of the Merrion Road
Current assets
development project which is due to be received in Q2
Trade and other receivables and 2022 (sale value €42.4m)
15.4 10.5
inventories
Increases to IFRS 16 RoU assets and lease liabilities
Contract fulfilment costs 36.3 -
primarily due to two new leases
Cash 41.1 50.2
Trade and other payables includes VAT and PAYE tax
Total assets 1,890.0 1,752.0 liabilities totalling €26.3m which have been deferred
Equity 957.4 932.8 under Irish Tax Authorities’ Debt Warehousing Scheme
and are payable from December 2022
Loans and borrowings 313.5 314.1
Limited exposure to rising interest rates as interest rate
IFRS 16 Lease liabilities 481.9 399.6
swaps cover 100% of the term debt of £176.5 million
Trade and other payables 84.7 48.7 until 26 October 2024. Cap on long term leases also
Other liabilities2 52.5 56.8 provides protection in periods of high inflation
Total equity and liabilities 1,890.0 1,752.0
1. Other non-current assets include investment property, deferred tax assets, derivative assets and other receivables
2. Other liabilities include deferred tax liabilities, derivative liabilities, provision for liabilities and current tax liabilities
3. Refer to glossary on slide 32 for definition
15 | Dalata FY 2021 ResultsHotel Nikko, Düsseldorf GROWTH STRATEGY Slide:I 16 Slide
DALATA MODEL SUPPORTS SUSTAINED
GROWTH
Portfolio growth2
Optionality 2 freehold hotels –
E.g. sale and lease total development
back of Clayton cost 3 of c. €108m
Hotel assets
Hotel Charlemont when complete
of €1.2bn at
31 December 2021
Potential to grow
Free cash flow
further through
Quality long term of €99m in
acquisitions,
leases with strong 20191 €30m pipeline in extensions and
fixed rental covers stabilised EBITDA2 post quality long term
2.1x1 in 2019 rent leases for newly built
Weighted average or existing hotels
lease life of 30.1 years such as Hotel Nikko
Düsseldorf
Excellent reputation
as hotel operator,
acquirer and
developer with strong
covenant
1 Excludes Ballsbridge Hotel (now closed)
2 Includespipeline of 9 hotels and recently opened hotels in Glasgow in 2021 and Manchester City Centre (x2) in 2022 - see glossary on slide 32
3 Development cost includes construction costs, fees and site purchase costs
17 | Dalata FY 2021 ResultsCOMPELLING GROWTH STRATEGY
Growth strategy Dalata’s competitive advantage
Ireland: Consolidating our market Robust balance sheet with a strong
leading position in large cities – Dublin, reliable covenant
Cork, Limerick and Galway
Operational expertise through
Regional UK: Four-star market leader in
the large cities which have a strong decentralised model
RevPAR and mix of corporate and leisure
demand
Experienced and skilled Acquisitions and
Development Team
London: Continue to source
opportunities in a very attractive city
Excellent reputation amongst real estate
investors, property developers and agents
Europe: Establish a presence in the four-
star market in large commercially Maldron and Clayton are leading brands
attractive European cities
18 | Dalata FY 2021 ResultsUK GROWTH STRATEGY
UK growth strategy further diversifies business Existing UK pipeline of 1,3902 rooms
geography Now fully funded
% room numbers1 Existing Dalata hotel
New hotel in pipeline yet to open in 2022
4% 3% New hotel in pipeline opening 2023-2024
22% UK
footprint
30% 35% to exceed
7%
Dublin
portfolio Glasgow
21% 6%
6%
19% Derry
16% Belfast Newcastle
50%
41% 40% Manchester Leeds
Liverpool
Open
Open rooms
rooms at OpenOpen
at Dec-2019 roomsrooms
- Today - % TotalTotal
roomsrooms
including Birmingham
Today Cambridge
Dec-2019
- % room numbers* room numbers* including
committedcommitted
pipeline - %
pipeline
room numbers* Cardiff
London
Dublin Reg Ireland London Reg UK Continental Europe Bristol
Brighton
1 Excludes management contracts comprising 294 rooms (today)
2 UK pipeline only; excludes Dublin pipeline of 640 rooms
19 | Dalata FY 2021 ResultsADDING AT LEAST SEVEN HOTELS IN 2022
Clayton Hotel Maldron Hotel The Samuel Maldron Hotel
Manchester Manchester Hotel, Merrion Road,
City Centre City Centre Dublin Dublin
329 rooms 278 rooms 204 rooms 140 rooms
January 2022 February 2022 April 2022 June 2022 Additional 1,125
rooms to open
Adding over 1,900 new rooms in 2022 in 2023-2024.
Ambitious for
further growth
Hotel Nikko Clayton Hotel Clayton Hotel
Düsseldorf Bristol City Glasgow City
393 rooms 255 rooms 303 rooms
February 2022 March 2022 June 2022
20 | Dalata FY 2021 ResultsCLAYTON HOTEL MANCHESTER
CITY CENTRE
Centrally located four-star hotel
• Prime location on Portland street in Manchester city centre
• 329 air-conditioned bedrooms, business centre with 5 meeting rooms, fitness centre,
bar and restaurant
Sustainability
• Built to a BREEAM sustainability assessment of 'Very
Good' standard
• Includes new technologies to reduce carbon
emissions
• Utilises metering technology for gas, electricity and
water as well as LED lighting
Innovation
• High tech-enabled – meeting rooms equipped with
Clevertouch technology to host 150 delegates
Strong partnerships
• Developed by Property Alliance Group, constructed
by Russell WBHO
• £45m development cost funded by Aviva Life &
Pensions UK Limited
• 35 year lease commitment
• Targeting rental cover above 1.85x in year 3 of
operation
Supported by strong teams
• 46% of management team are internally developed
• Establishing Dalata culture and operating model
• Occupancy of 60% in February 2022
• Created 87 new jobs in the city
21 | Dalata FY 2021 ResultsESTABLISHING A PRESENCE IN
CONTINENTAL EUROPE
Centrally located four-star hotel
• Announced first hotel in Continental Europe in February with a new
operating leasehold interest in Hotel Nikko Düsseldorf
• 393-bedroom, modern and luxury four-star that is well invested
Prime location
• Düsseldorf is a large city with a strong RevPAR and mix of
corporate and leisure demand
• Hotel is centrally located close to the Central Business
District
Supported by Dalata teams
• Dalata integration team on site to support local hotel
team with transition
First deal with Art-Invest
• Dalata profile and reputation well established amongst
real estate investors
22 | Dalata FY 2021 ResultsMaldron Hotel Newlands Cross, Dublin SUSTAINABILITY Slide: Slide I 23
ESG COMMITMENT
> Established Responsible Business Framework framework to deliver on our purpose
Purpose
> Conducted an extended materiality assessment with key stakeholders (management team,
& employees, key suppliers) to compliment earlier assessment to determine priorities - over 500
Strategy responses were received
> The ESG Committee is now supported by core teams from across the business
Governance > Environmental Steering Group and a Social Impact team in place
> Achieved gender balance on the Board
> Set near-term environmental targets and are working on our long term climate ambition
Commitment > Before setting the targets, we established our baseline through a Scope 1, 2 & 3 assessment
& Ambition
> Invested in Sustainability L&D programme for board, management, employees and suppliers
> Strong focus on ESG disclosure and reporting including alignment to the SDGs, starting our
journey to meet the recommendations of the TCFD framework, and disclosing against the
Performance Hotels & Lodgings SASB standard. Working to integrate the EU Taxonomy requirements
> In terms of our external recognition, we maintained our CDP Score B and over 80% of our
hotels achieved Gold in the Green Tourism certification
24 | Dalata FY 2021 ResultsESG PROGRESS UPDATE
Near term Targets
Our starting point Progress update Next steps
Energy related emissions
Adopted the principles and Conducted a supplier half day Assessing medium term
reduced by 20% per room let
provisions of the UK webinar on sustainability in targets as we look to SBTi
by 2026 corporate governance code Sept-21 targets and Net Zero
since listing * *
* Achieved gender balance on Developing systems and
Food waste reduced by 15% Established an ESG board Board processes that enable us
committee in January 2020 * to gather reliable
per sleeper by 2026 data to support better
* Identified suitable non-financial
Company values are built metrics for 2021 reporting, measurement
on the ethos that * and target setting
Water consumption down by hospitality is all about Engaged consultants to assess *
people carbon impact of our buildings Will identify non-financial
15% per sleeper by 2026 KPIs and targets where
* *
First CDP return submitted 2021 CDP return (score: B) appropriate
in 2018 (score: C) * *
100% of waste diverted from Developing a 3-year ESG
91% of our people believe that
landfill by 2022 people from all backgrounds Action Plan for all of our
are treated fairly; 95% feel key themes and an ESG
respected and included by their Reporting Roadmap
Collect carbon emissions from colleagues (2021 employee
engagement survey)
100% of top suppliers by 2024
25 | Dalata FY 2021 ResultsOUR RESPONSIBLE BUSINESS FRAMEWORK
“Our purpose is to grow and evolve as an innovative and sustainable international hotel company
delivering excellence in customer service, driven by ambitious people flourishing within a culture of
integrity, fairness and inclusion”
People Planet Society
Priorities
Diversity and inclusion Carbon emissions Data privacy
Learning and development Sustainable infrastructure Sustainable procurement
Health, safety & security
Link to Sustainable Development Goals:
Governance
Priorities:
Information Security
26 | Dalata FY 2021 ResultsClayton Hotel Ballsbridge, Dublin OUTLOOK Slide: Slide I 27
OUTLOOK
Recovery well underway
Trade is recovering following the removal of restrictions at the end of January:
• Group occupancy1 of 38% in January up to 62% in February
• February Group RevPAR1 was 91% of February 2019
Domestic recovery in Q3 2021 demonstrated strength of pent-up leisure demand
As flight capacity increases and companies start to return to offices, expecting equally strong return of
international leisure and corporate travel
Strong calendar of events for 2022 in all our cities
Looking forward
Remaining agile and continue to proactively manage the business in an uncertain environment with
potential further Covid-19 variants and the current conflict in Ukraine and its potential wider global
implications
Managing large recovery opportunity within existing Dalata portfolio
Positive economic growth forecasts, however inflationary pressures
Focused on growth opportunities and delivering existing pipeline of over 2,000 rooms - adding at least
7 hotels to the portfolio in 2022
Dividend resumption will be reviewed further into the recovery
28 | Dalata FY 2021 Results 1 Prepared on a like for like hotels – see glossary on slide 32 for definitionClayton Hotel Cambridge APPENDICES Slide: Slide I 29
DUBLIN SUPPLY IMPACTED BY COVID-19
Savills Ireland forecast additional rooms of 40% of new supply is in the budget sector -
c. 4,900 from 2022 to 2024 addressing current gap in Dublin market segmentation
Source: AM:PM and Savills Source: AM:PM and Savills
Current market size of c. 25,100 rooms at Feb-22
+7%* 54%
51%
Estimated 59% of
2,500 these rooms are
currently over 40
2,000 Currently a
years old
limited
1,500 number of
+4% budget hotels 21% 20%
+4%
1,000 12%
8%
500 5% 7% 5% 4% 7% 6%
0
2018 2019 2020 2021 2022 2023 2024 Budget Aparthotel 2 Star 3 Star 4 star 5 star
Estimated opening
Current market by rating
Open Under construction Pre-construction 2024 market by rating including new pipeline
Airbnb impacted by new regulations in Ireland Supply likely to slow due to Covid-19
New regulation introduced in July 2019, requires owners of Pipeline delayed due to government restrictions necessitating
residential properties in rent pressure zones to obtain the closure of most construction sites during lockdowns
planning permission for use of property for short-term lets for Funding issues for pre-construction projects
greater than 90 days a year Evidence of hotels closures/conversions to alternative use
No evidence of permissions granted by Dublin City Council to beginning to emerge
date Older properties likely to be challenged further once
government support is withdrawn
*Remaining rooms under construction in 2022 are forecast to increase market size by 7%
30 | Dalata FY 2021 ResultsPIPELINE OF OVER 2,000 ROOMS
Dublin UK
3 new hotels (2 leased, 1 owned) 6 new hotels (5 leased, 1 owned)
2 extensions to existing hotel 1 extension to existing hotel
640 rooms 1,390 rooms
Owned Planning Construction Estimated
Property New Extension Rooms
or leased Granted Started Completion
Clayton Hotel Charlemont, Dublin1 x Leased 3 x x March 2022
The Samuel Hotel, Dublin1 x Leased 204 x x April 2022
Dublin Maldron Hotel Merrion Road, Dublin x Owned 140 x x June 2022
Maldron Hotel Croke Park, Dublin1 x Leased 200 x H2 2024
Clayton Hotel Cardiff Lane, Dublin x Owned 93 x TBC2
Maldron Hotel Shoreditch London x Owned 149 x x H2 2023
London
Clayton Hotel City of London x Owned 14 x TBC2
Clayton Hotel Bristol City1 x Leased 255 x x March 2022
Regional Clayton Hotel Glasgow City1 x Leased 303 x x June 2022
UK Maldron Hotel Brighton1 x Leased 221 x x H1 2024
Maldron Hotel Liverpool1 x Leased 260 x H1 2024
Maldron Hotel Victoria, Manchester1 x Leased 188 x H1 2024
Total 2,030
Pipeline has significant impact on ownership mix:
Existing portfolio room mix at 01 March 2022 comprises 63% owned and 37% leased
Following the roll out of the pipeline, room mix will comprise 56% owned and 44% leased
1 35 year operating lease
2 Opening dates to be confirmed
31 | Dalata FY 2021 ResultsGLOSSARY
‘Like for Like’ hotels ‘Like for Like’ hotels include a full year performance of all hotels regardless of when acquired. The Dublin portfolio excludes the Ballsbridge
Hotel as the hotel effectively has not traded since March 2020. The UK portfolio excludes the new Maldron Hotel Glasgow City which opened
in August 2021. The 3 hotels added in early 2022 are also excluded.
EBITDA adjusted to show the underlying operating performance of the Group and excludes items which are not reflective of normal trading
Adjusted EBITDA
activities or distort comparability either ‘year on year’ or with other similar businesses.
Adjusted basic loss
Loss per share excluding the tax adjusted effects of the adjusting items referred to above.
per share
Stablised EBITDA EBITDA after deducting fixed lease costs and includes the pipeline of 7 leased hotels and 2 owned hotels, Maldron Hotel Glasgow City
after fixed lease (opened Aug-2021), Clayton Hotel Manchester City Centre (opened Jan-2022), and Maldron Hotel Manchester City Centre (opened Feb-
costs 2022). The Group typically estimate achieving stabilised EBITDA in year three of normal operation post opening of a newly built hotel.
Net Debt Loans and borrowings drawn less cash and cash equivalents.
Net Debt to Value Net Debt divided by the valuation of property assets as provided by external valuers.
Free Cash Flow Net cash from operating activities less amounts paid for interest, finance costs, refurbishment capital expenditure, fixed lease payments and
after adding back cash paid in respect of items that are deemed one-off and thus not reflecting normal trading activities or distorting
comparability either ‘year on year’ or with other similar businesses. Since the onset of the Covid-19 pandemic, the Group has deferred VAT
and payroll taxes under government support schemes, most of which may be deferred further to 30 April 2023. This non-recurring initiative
was introduced by government Covid-19 support schemes and allows the temporary retention of an element of taxes collected during 2020
and 2021 on behalf of tax authorities. To remove the effect of this distortion on cash flows from trading and accurately reflect the period in
which these amounts relate to, the impact of these deferrals have been excluded in the calculation of Free Cash Flow.
Real Modified GNI Real Modified Gross National Income (GNI) is an indicator designed specifically to measure the size of the Irish economy by excluding
Globalisation effects (adjusted to remove the effects of inflation). This measure adjusts GNI to exclude 1) retained earnings of firms that
have re-domiciled to Ireland; 2) the depreciation of foreign-owned intellectual property (IP) assets located in Ireland; and 3) the depreciation
of aircraft owned by aircraft-leasing companies. The rationale for excluding the retained earnings of redomiciled PLCs is that these profits do
not accrue to Irish residents and will, at some stage, be paid out to the foreign owners of the firm by way of dividends. In relation to
depreciation of Irish-based, but foreign-owned, IP and aircraft, these are costs borne by the foreign shareholders and not by Irish residents
and, accordingly, should be excluded from actual incomes.
32 | Dalata FY 2021 ResultsHOTEL PORTFOLIO AT 1 MARCH 2022
29 owned hotels 15 leased hotels 9 pipeline hotels 3 managed hotels
6,232 rooms 3,675 rooms 2,030 rooms 294 rooms
Dublin Hotel portfolio Regional Ireland Hotel portfolio UK Hotel Portfolio
Owned Hotels / Freehold Equivalent Owned Hotels / Freehold Equivalent Owned Hotels / Freehold Equivalent
Hotel Rooms Hotel Rooms Hotel Rooms
Clayton Hotel Dublin Airport 608 Clayton Hotel Cork City (3) 201 Clayton Hotel Manchester Airport (5) 365
Clayton Hotel Leopardstown, Dublin 357 Clayton Hotel Galway 195 Clayton Hotel Leeds 334
Clayton Hotel Liffey Valley, Dublin (1) 349 Maldron Hotel Sandy Road, Galway 165 Maldron Hotel Belfast City 237
Clayton Hotel Ballsbridge, Dublin 335 Maldron Hotel South Mall, Cork 163 Clayton Hotel Chiswick, London 227
Clayton Hotel Cardiff Lane, Dublin (2) 304 Clayton Hotel City of London 212
Clayton Hotel Sligo 162
Maldron Hotel Newlands Cross, Dublin 297 Clayton Hotel Belfast 170
Clayton Whites Hotel, Wexford 160
Maldron Hotel Parnell Square, Dublin 182 Clayton Crown Hotel, London 152
Clayton Hotel Limerick 158
Maldron Hotel Kevin Street, Dublin 137 Maldron Hotel Derry 93
Maldron Hotel Limerick (4) 142 Leased hotels
Maldron Hotel Pearse Street, Dublin 119
Clayton Hotel Silver Springs, Cork 109 Clayton Hotel Manchester City Centre 329
Leased hotels
Maldron Hotel Wexford 108 Maldron Hotel Glasgow City 300
Clayton Hotel Burlington Road, Dublin 502
Maldron Hotel Shandon Cork City 101 Maldron Hotel Manchester City Centre 278
Maldron Hotel Dublin Airport 251
Maldron Hotel Tallaght, Dublin 119 Maldron Hotel Portlaoise 90 Maldron Hotel Newcastle 265
Clayton Hotel Charlemont, Dublin 187 Leased hotels Clayton Hotel Cardiff, Wales 216
Maldron Hotel Smithfield, Dublin 92 Maldron Hotel Galway (Oranmore) 113 Clayton Hotel Birmingham 218
The Gibson Hotel, Dublin 252 Regional Ireland portfolio 1,867 Clayton Hotel Cambridge 160
Dublin portfolio 4,091 UK portfolio 3,556
Dublin pipeline Continental Europe UK pipeline
Owned hotels Leased hotel Owned hotels
Maldron Hotel Merrion Road, Dublin 140 Hotel Nikko Düsseldorf 393 Maldron Hotel Shoreditch London City 149
Clayton Hotel Cardiff Lane, Dublin – extension 93 Continental Europe portfolio 393 Leased hotels
Leased hotels Clayton Hotel Glasgow City 303
The Samuel Hotel, Dublin 204 Maldron Hotel Liverpool 260
Maldron Hotel Croke Park, Dublin 200 Managed hotels Clayton Hotel Bristol City 255
Clayton Hotel Charlemont, Dublin - extension 3 Maldron Hotel Belfast 104 Maldron Hotel Brighton 221
Dublin pipeline rooms 640 Hotel No. 7/Barry’s Hotel 83 Maldron Hotel Victoria, Manchester 188
The Belvedere Hotel, Dublin 107 Clayton Hotel City of London - extension 14
Managed hotels 294 UK pipeline rooms 1,390
(1) Remaining 12 rooms owned by third parties
(2) Dalata own 256 rooms and lease 48 rooms
(3) Dalata own 194 rooms and lease 7 apartments
(4) Effective ownership of hotel as the Group holds a secured
33 | Dalata FY 2021 Results loan over the property which is not expected to be repaid
(5) Effective ownership of hotel on 99-year leaseYou can also read
