The hotel chain’s strategic review has attracted multiple suitors, but the outcome may reveal as much about capital markets and growth sentiment as it does about the company itself.
Feeling undervalued by investors and requiring more capital to fuel its ambitious growth plan, Ireland’s largest hotel group has triggered a strategic review. It is the latest twist in a company formed from the embers of Ireland’s financial collapse.
To maintain Ireland’s tourism offering, Dalata CEO Dermot Crowley says that the reduced Vat rate should be reintroduced for restaurants.
The hotel industry is a microcosm of the wider economy. At first glance, it seems to be thriving. However, the more you peel it back, the more vulnerabilities emerge.
International investors are making bold plays on the Irish hotel market. Private equity buyers and well-heeled private buyers are also circling. Yet, margins and room revenues are under pressure, and a host of hoteliers have handed over the keys to the state.
Today's earnings show Dalata's hotel rooms are filling back up and people are willing to pay for them. So why hasn't the share price responded?
In an wide-ranging interview, Pat McCann, the hotelier and new president of Ibec, talks about the future of the Irish economy, the hotel industry and the secret to keeping investors happy.
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