Dalata Hotel Share Discussion Threads

[blackhorse23] 07/2/2024 08:32

Money moving to GNC

[denisoleary] 29/8/2023 20:45

Looks good for the future. A strong buy at these levels IMO

[djderry] 29/8/2023 08:43

Very robust interims.

[casholaa] 05/6/2023 12:02

Yeah. They have hotels in Ireland and in the EU as well as what's left of the UK

[denisoleary] 05/6/2023 11:07

Hang on to these. Should rise in coming months. Environment good for hotels this year

[djderry] 02/6/2023 17:39

Ramping up bed capacity in London,two hotels in four months,impressive.

[breaceq] 12/1/2023 17:20

Indeed - looking good.

Largest shareholder breached the 10% mark recently having been inactive for a long period.

[casholaa] 10/1/2023 12:29

I think it's had it's can of spinach.

[casholaa] 06/1/2023 15:34

I think it's a mix of uncertainty due to covid+recession+disposal+acquisition. Over the last year, the spread on the share price is totally unreal and the value of my interest yoyo's throughout the day -but Ive gotten used to it now.

[breaceq] 06/1/2023 15:18

Euro per Irish press reports.
Davy also strong on their outlook


Hard to explain the recent weakness but the fundamentals look very strong

[djderry] 29/6/2022 07:39

Strong trading update.

[casholaa] 23/12/2021 15:49

Looking at recent rns's, and it appears that FMR have been gently reducing their holding.

[djderry] 08/3/2021 19:44

Surely the share price is not moving on the expectation that they're going to sign a contract with the government for mandatory quarantining?

[saltaire111] 13/11/2020 17:05

Up 43% on my purchase here.

Should have bought more.

Salty

[saltaire111] 09/11/2020 19:49

Delta flying! Happy days...

Salty

[djderry] 01/9/2020 17:12

That placing was swift.

[saltaire111] 03/6/2020 19:24

So Buffet sold out of airlines and the share prices have now really started to take off (scuse the pun!). Nice that for once it looks like I was right and he was wrong! Might regret writing that mind you...

Salty.

[saltaire111] 15/4/2020 13:13

Bought some Delta Stock @ $23 last week. I’d seen the coverage of Buffet adding to his holding the week before at $42 and thought it would be nice to beat him on purchase price! This is a long term investment and, if they manage to remain out of government hands, it should pay off handsomely at some point in the future.

Salty

[henryatkin] 18/11/2019 15:33

I had trouble buying today, could only get £2k at a time, are they generally this tight and with 5% spread? Definitely in demand today whatever.

[hybrasil] 19/11/2018 17:20

That Tara towers deal looks really beneficial for the company

[danielbird193] 04/9/2018 11:34

Fairly pleased with the interim results today. Highlights are as follows:

- Revenue up 10.6%
- Adjusted EBITDA up 12.0%
- Profit before tax up 8.3%
- Maiden dividend declared (3c per share)
- Pipeline of 2,800 additional rooms to be added between now and 2021 (Dublin, Cork, Newcastle, London, Birmingham, Manchester, Bristol)

Management show every sign of executing their ambitious expansion plans successfully and building a distinctive portfolio of in-house brands.

On a 3-5 year view I see this share as a nice growth prospect with the added bonus of a healthy, cash-generative model to support sustainable increases in the dividend over time. BUY.

[wexboy] 29/12/2016 06:26

2016 – The Great Irish Share Valuation Project (Part IV):

Company: Dalata Hotel Group (DHG:ID)

Last TGISVP Post: Here

Market Cap: EUR 821 M

Price: EUR 4.485

Back in 2014, Dalata was still essentially an uninvested Hotel SPAC – valuing it accordingly, i.e. based primarily on its net cash, I tagged it (probably unfairly) as overvalued. Fortunately, management has since lived up to its pedigree & delivered a burgeoning hotel empire – spending, within a year, over €550 million on 16 hotels in (primarily) Ireland & the UK, the transformational deal being the acquisition of the Moran Bewley’s Hotel Group. The company then replenished its war chest in Sep-2015, raising another €160 million from a placing & open offer. Since then, the portfolio’s been expanding steadily (to over 6,600 rooms) with a focus on rebranding & refurbishment as Clayton and Maldron Hotels, RevPAR has increased significantly (to €74.90), while occupancy’s reached 79.0%, with new & existing hotel development opportunities also now being actively exploited. Dublin remains the main profit engine, enjoying 46% EBITDAR margins, followed by the UK (on 36% margins), with the Regional Ireland portfolio the laggard on sub-22% margins. As per today’s trading update, trading remains brisk, with no sign of a Brexit impact – fortunately, a majority of the UK portfolio is hedged with sterling liabilities, so sterling weakness isn’t that significant in terms of return on capital/equity.

Which is very relevant, as I’d prefer a return on equity (RoE) valuation approach here (vs. most analysts & their focus on earnings/EBITDA multiples), reflecting DHG’s deliberate asset-heavy investment policy…which is now far less usual in the sector. H1-2016 net profit (exc. acquisition costs) was approx. €17.5 million, which equates to an annualised 6.3% RoE. However, I suspect H2 net profit will move significantly higher, so FY average RoE might come in closer to 7.5%. But that obviously includes a large depreciation expense, a significant portion of which wouldn’t necessarily be considered economic – so, somewhat arbitrarily (& I think conservatively), if we add-back 50% of the €14 million annual depreciation charge, we’re looking at something more like an underlying 8.8% RoE. [I should highlight that leverage (sub-30% Net LTV) poses no undue risk]. Of course, increasing property values (H1 comprehensive income actually included a €42 million revaluation bump!) could also significantly inflate underlying RoE – accounting for such revaluation potential, current operating performance trajectory, additional debt capacity, plus likely development gains to come, a 1.33 Price/Book multiple should adequately reflect a likely double digit underlying RoE:

EUR 578 M Equity * 1.33 P/B / 183 M Shares = EUR 4.20

Dalata looks pretty much fairly valued here. Its attractiveness as a potential buy will be dependent on whether you’re encouraged by the underlying supply-demand equation (apparently, a substantial under-supply of rooms in Dublin & select UK cities), or are more fearful of the ongoing Brexit implications (I suspect sterling volatility’s more of a risk to tourism flows/patterns than Brexit itself). Longer-term, the impact of Airbnb (& similar services) needs to be evaluated, especially as Clayton & Maldron are more value-biased/budget-conscious brands. Meanwhile, Dalata’s low leverage gives it the flexibility to take a more defensive or offensive stance, as appropriate.

Price Target: EUR 4.20

Upside/(Downside): (6)%

For related links/graphs/files & other TGISVP analyses/price targets: Google the Wexboy investment blog.