Dalata Hotel Group, Ireland’s largest hotel operator, has reported higher revenues but sharply lower profits for the first half of 2025, describing the period as “challenging” for the domestic tourism sector. The update comes weeks after Scandinavian investors Pandox and Eiendomsspar agreed to acquire the group in a landmark €1.4 billion deal.
The company, which owns the Maldron and Clayton hotel brands, said revenues for the six months to June 30 rose slightly to €306.5 million, up 1% from €302.3 million a year earlier. However, profit after tax fell by 45% to €19.6 million, compared to €35.8 million in the same period last year. Dalata attributed the drop to costs linked to its ongoing strategic review and higher non-cash accounting charges.
Despite the mixed results, the group highlighted continued expansion, securing four hotels in prime European cities during the period. These include the Clayton Hotel Tiergarten in Berlin, the Clayton Hotel Valdebebas in Madrid, the Clayton Hotel Morrison Street in Edinburgh, and the Radisson Blu Dublin Airport, which will be rebranded as a Clayton next year. Together, the additions will bring more than 1,000 new rooms to the portfolio, with further expansion potential at Dublin Airport.
Dalata also reported progress on major developments, including the Maldron Hotel at Croke Park in Dublin, the Clayton Hotel St Andrew Square in Edinburgh, and an extension to the Clayton Hotel Cardiff Lane.
Commenting on the results, Chief Executive Dermot Crowley acknowledged the pressures facing the sector, particularly rising costs and weaker performance in the UK. “Despite external commentary of a challenging year for tourism in Ireland, our like-for-like performance in Dublin and regional Ireland remains stable. However, continued increases in costs and especially pay rates put downward pressure on our margins. The UK market has been more challenging, with RevPAR down 3.5% on last year,” he said.
Crowley also praised the group’s resilience during the strategic review, which culminated in July with Pandox and Eiendomsspar offering €6.45 per share, a 49.7% premium to the company’s 12-month average share price before March 6. Dalata’s board has unanimously recommended the cash offer, with a shareholder vote scheduled for September 11.
“If shareholders approve the offer and regulatory conditions are met, this is likely to be our last financial results announcement as a PLC,” Crowley said. “While that marks the end of an era, I believe the acquisition represents a positive outcome for shareholders and an exciting new chapter for Dalata as part of a larger international hotel company.”
Looking ahead, the group said strong flight volumes, major events in Dublin, and the integration of newly acquired properties would help support demand in the second half of the year.
