Dalata Hotel Group PLC (LSE:DAL), parent to the Clayton and Maldron brands, has begun a strategic review to explore capital opportunities and enhance shareholder value. The process includes exploring the possibility of a full sale of the company, under a formal sale process.
Dalata has appointed Rothschild & Co as its financial adviser for the review.
The Irish firm operates 55 hotels, including 30 owned properties valued at €1.70 billion.
Financial result, also released today, show Dalata generated €652.2 million of revenue and €234.5 million of earnings (adjusted EBITDA) and €78.7 million of pre-tax profit.
“The share price does not reflect the underlying value of the company,” Dalata chair John Hennessy said in a statement.
“We believe that now is the right time to undertake a rigorous and formal strategic review, which will consider options to increase access to capital and also enhance shareholder value.”
Chief executive Dermot Crowley, meanwhile, highlighted the company’s growth plan (called ‘2030 Vision’) that aims to grow the hotel portfolio by some 80% up to 21,000 rooms by the end of the decade.
“Access to capital is essential to achieve our vision,” Crowley said.
“A thorough strategic review will enable us to assess available options to increase our access to capital and enhance shareholder value.
“During the process we will remain focused on the underlying business – continuing to take care of our people and continuing to meet the expectations of our customers.”
He added: “our teams will remain focused on delivering on the objectives that we have set ourselves for 2025.”
Jamie Ashcroft
