Dalata tackles challenges of rising input costs

The team at Dalata Hotel Group believes it has hit on a series of measures to help it handle rising costs from changes to National Insurance and other elements of wages. In a trading update for the second half of 2024, the company said activity has been “robust”, and that it expects EBITDA for the full year to rise by 4% from a year ago to €232m (£192m). It added that recently announced changes in UK National Insurance, increased minimum wage rates in Ireland and increased living wage rates in the UK will increase hotel payroll by about 5% next year. The team expects to cover these costs with the benefit of a €2m reduction in contracted energy pricing, the ongoing roll out of further efficiency and innovation initiatives and through revenue growth. The company opened four new hotels in the UK this summer. Chief executive Dermot Crowley said: “Our focus on innovation over the past three years continues to deliver enhanced productivity and mitigate the impact of cost inflation on our margins. It is always challenging when external input costs are rising, however, I am delighted with how everyone at Dalata has responded to the challenge.” He added: “I look forward to 2025 with optimism. I am very happy with the early trading performance of the four hotels we opened in 2024 and I look forward to Dalata benefiting from its full-year impact next year.”