London helps fuel growth for Irish hotels group Dalata

The King’s coronation helped boost London tourism this year  (AP)
The King’s coronation helped boost London tourism this year (AP)

Irish hotel group Dalata says its growing London portfolio drove its UK growth in the second quarter, as it set out plans expand its presence in the capital.

The owner of the Clayton and Maldron hotel brands saw 23% growth in like-for-like revenue per available room in London, compared to 12% elsewhere in the UK. This was driven both by higher occupancy and higher room rates, after London locations lagged behind in the immediate aftermath of the pandemic.

That helped group profit rise by 24% to €103.4 million (£88.6 million), of which €26.9 million was from the UK.

Dalata has upped its focus on London lately, opening two hotels in the capital so far this year with another opening, the Maldron Shoreditch, next spring.

CEO Dermot Crowley told the Standard that London was becoming a bigger priority for Dalata. “London is one of the greatest cities in the world. The challenge is trying to build a hotel or buy a hotel because everyone wants to be there.

“Of all the cities we’re targeting, it’s a top priority.”

He added that the growth in London had come thanks to strong business and leisure travel, but with visitors from Asia only just starting to return, there could be room for even more growth.

Dalata is the latest hotel chain to report booming business, with little sign of the public cutting back spending on travel even as they reduce spend almost everywhere else.

Last week, Travelodge reported a boom in profits as its London hotels enjoyed their best ever night for revenue in July over the first Saturday of Wimbledon, Bruce Springsteen at Hyde Park and Blur at Wembley, Iron Maiden at the O2 and the Weeknd at the Olympic Park. IHG meanwhile, saw a 22% boost to revenue per available room in London.