2017 FULL YEAR RESULTS DELIVERING OUR PROMISE - Dalata Hotel Group
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2017 FULL YEAR RESULTS DELIVERING OUR PROMISE
Contents
Key Value Drivers slide 3
KPIs & Market Background slide 5
2017 Financial Performance slide 9
Strategy - Driving Portfolio Growth slide 18
Strategic Priorities slide 25
Outlook slide 32
Appendices slide 34
DISCLAIMER
The presentation contains forward looking statements. These statements have been made by the Directors in good faith based on the information
available to them up to the time of their approval of this presentation.
Due to inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may
differ materially from those expressed or implied by these forward looking statements. The Directors undertake no obligation to update any forward
looking statements contained in this presentation, whether as a result of new information, future events or otherwise.
2017 Full Year Results
Delivering Our Promise
Slide | 2
Key Value Drivers
By focusing on our customers, our people, our brands and our growth strategy:
We continue to outperform the market. RevPAR growth very strong in Dublin, Regional Ireland
and UK during 2017
We are delivering strong conversion with Segments EBITDAR margin increasing from 41.4% to
42.9%
We are going to open a very strong pipeline of 980 additional rooms in Ireland and the UK during
2018
We have secured a further pipeline of 1,100 rooms in the UK, opening from 2019 to 2021
We continue to maintain a very healthy balance sheet to fund this growth
Low level of gearing with Net Debt to Adjusted EBITDA of 2.4x
Well located hotel assets with market value of close to €1 billion
2017 Full Year Results
Delivering Our Promise
Slide | 3
Clayton Hotel, Manchester Airport KPIs & MARKET BACKGROUND
Driving Sustained Strong Performance
RevPAR Revenue Adjusted EBITDA1 Adjusted Diluted EPS2
€ €m €m Cents (€)
100 400 40.00
110 +23% +43%
+10% 350
+20% 37.50
90 90 35.00
300
32.50
70
80 250 30.00
50 27.50
200
70 25.00
150 30
22.50
60 100 10 20.00
2016 1. Excludes revaluation movements, goodwill impairment and items considered by management to be non-recurring or unusual in nature.
Acquisition costs have been excluded given the scale of acquisitions in 2016
2. Excludes the tax adjusted effects of revaluation movements, goodwill impairment and items considered by management to be non-recurring
2017 or unusual in nature
2017 Full Year Results
Delivering Our Promise
Slide | 5
Three Core Business Segments
Dublin Group Segment EBITDAR
15 Hotels Revenue EBITDA Margin
58% 61% 49%
3,992 Rooms
FY 2017 RevPAR:€99.001 (+11.0%)
RevPAR including Clayton Hotel
Burlington Road: €101.21(+9.2%)
Regional Ireland
22% 17% 28%
12 Hotels
1,643 Rooms
FY 2017 RevPAR: €69.45 (+9.1%)
UK2
8 Hotels
1,731 Rooms
FY 2017 RevPAR: £66.64 (+9.6%) 20% 20% 39%
1. Clayton Hotel Burlington Road is excluded because its performance in the transitional period since its November 2016 acquisition has a disproportionate
impact as a result of its size
2. EBITDAR margin excludes Croydon Park Hotel
2017 Full Year Results
Delivering Our Promise
Slide |6
Market Review | Dublin
Savills forecast over net additional 5,300 rooms by 2020
2017 2018 2019
Dublin
Actual Forecast Forecast
2,500 2,128
2,000 Occupancy 83.0% 83.2% 80.8%
2,000
ARR 136.80 143.18 144.62
1,500 1,170
1,000 RevPAR 113.49 119.18 116.81
500 159
RevPAR %
7.7% 5.0% -2.0%
Variance
-
Source: STR Global
2017 2018 2019 2020
Total market size of circa 20,000 rooms
Savills projecting gross 1,280 rooms to open in 2018 with Tara Towers (109 rooms) closing. Approximately 800 to
1,000 of new rooms to open in second half of the year
Savills projecting 2,500 new rooms in 2019 with Ballsbridge Hotel (400 rooms) to close. Less than 1,100 of these
new rooms have started construction
Full planning permission has been granted for less than 700 of the rooms projected to open in 2020
Increase in supply expected to be matched by increase in demand from continued economic growth, increased
visitor numbers and growing evidence of office relocations from London to Dublin
5.0% RevPAR growth in FY 2018 by STR. Forecasting a fall in 2019 as they are assuming large increase in supply
2017 Full Year Results
Delivering Our Promise
Slide | 7
Maldron Hotel, Newlands Cross 2017 Financial Performance
Doing What We Promise
Strong growth in revenue, profit and earnings per share
Key Financials €million 2017 2016
Group RevPAR increased 10.4% to €88.51
Revenue 348.5 290.6
Segments EBITDAR margin increased from 41.4% to
Segments EBITDAR 149.5 120.3 42.9%
Rent (30.8) (25.4)
Central office overheads increased by €3.2 million due
Segments EBITDA 118.7 94.9 to investment in systems and an increase in payroll and
Central overheads (12.4) (9.2) training costs to support the growing portfolio
Share-based payment expense (1.7) (1.2) Other income/costs includes acquisition costs €1.3
Other income / costs (1.9) (13.4) million (2016: €2.7 million), gains on disposal of
properties and a subsidiary €0.5 million and net loss on
Group EBITDA 102.7 71.1 revaluation of property assets €1.4 million (2016: gain
Depreciation (15.8) (15.5) of €0.2 million). 2016 also includes stock exchange
listing costs of €1.3 million and goodwill impairment of
Net finance costs (9.6) (11.5) €10.3 million
Profit before tax 77.3 44.1
Profit after tax 68.3 34.9 2017 2016
Basic EPS (cents) 37.2 19.1 Occupancy 83.1% 82.1%
Adjusted EBITDA 104.9 85.1 Average Room Rate (€) €106.48 €97.60
Adjusted diluted EPS (cents) 37.9 26.6 RevPAR (€) €88.51 €80.20
2017 Full Year Results
Delivering Our Promise
Slide | 9
Adjusted EBITDA Bridge
150
135
120 10.4 0.3 1.5 4.0
2.4 0.6 104.9
105 2.8
10.6
90 85.1
75
60
45
30
15
0
Group EBITDAR margin increases from 41.4% to 42.9% due to strong conversion of additional revenue to EBITDAR
* Includes share-based payment expense and rental income
2017 Full Year Results
Delivering Our Promise
Slide | 10Very strong RevPAR performance in all
markets but especially in Dublin and the UK
18.4% Dalata Market
16.8%
13.6%
13.2%
11.9% 12.0%
11.4%
11.0% *
8.7%
8.1% 8.0%
7.7% 7.6%
6.6% 6.7%
4.4% 4.6%
2.3%
0.9%
-0.7%
Dublin Cork Galway Limerick London Belfast Leeds Manchester Birmingham Cardiff
Source: Market data – STR; Trending.ie
* Clayton Hotel Burlington Road is excluded from the ‘like for like’ analysis because its performance in the transitional period since its November 2016 acquisition has a
disproportionate impact as a result of its size. If Clayton Hotel Burlington Road was included, RevPAR increase for Dublin would be 9.2%
2017 Full Year Results
Delivering Our Promise
Slide | 11Dublin | Full Year Performance
All figures €million 2017 2016
Dublin portfolio (excluding Clayton Hotel
Burlington Road1) achieved RevPAR growth of Total revenue 200.7 151.9
11.0% versus the city 7.7% EBITDAR 99.0 73.0
EBITDAR margin reached 49.3% due to strong Rent (26.4) (19.5)
conversion of additional sales to EBITDAR at EBITDA 72.6 53.5
75.0% on a ‘like for like’ basis
EBITDAR margin 49.3% 48.0%
Rent increased due to full year impact of the
Clayton Hotel Burlington Road (November KPIs Inc Burlington Rd 2017 2016
2016) and The Gibson Hotel (March 2016),
increase in performance related rent at Occupancy 85.9% 84.3%
Maldron Hotel Dublin Airport and the Average Room Rate (€) €117.77 109.96
Ballsbridge Hotel and offset by rent saving
due to purchase of freehold at Clayton Hotel RevPAR (€) €101.21 €92.67
Cardiff Lane
KPIs Exc Burlington Rd1 2017 2016
Rent was further decreased by a release of
Occupancy 86.4% 85.1%
estimated accruals and liabilities due to the
purchase of one property (€1.4 million) and Average Room Rate (€) €114.52 €104.79
the renegotiation of an existing lease for
RevPAR (€) €99.00 €89.17
another property (€0.6 million)
KPIs include full twelve month performance of other Dublin acquisitions regardless of
when acquired
1. Clayton Hotel Burlington Road is excluded from the ‘like for like’ analysis because
its performance in the transitional period since its November 2016 acquisition has a
disproportionate impact as a result of its size
2017 Full Year Results
Delivering Our Promise
Slide | 12Regional Ireland | Full Year Performance
RevPar growth of 9.1%
All figures €million 2017 2016
RevPAR growth in Cork was behind the market
Total revenue 76.0 68.5
due to Clayton Hotel Cork City which was
negatively impacted by GDS transition and EBITDAR 21.5 18.2
refurbishment. Hotel has a very high RevPAR
Rent (1.2) (2.0)
versus market. Limerick hotels significantly
outperformed the market. Galway marginally EBITDA 20.3 16.2
behind market due to Maldron Hotel Sandy Road,
EBITDAR margin 28.3% 26.5%
where redevelopment work got underway in Q4
EBITDAR margin increased from 26.5% to 28.3%
due to very strong conversion of additional KPIs 2017 2016
revenue on a ‘like for like’ basis of 71.8%. This
Occupancy 75.5% 74.0%
was helped by ongoing improvement in F&B
margins Average Room Rate (€) 92.03 86.16
RevPAR (€) 69.45 63.68
Rent was lower due to the purchase of freehold
interests in Maldron Hotel Portlaoise (May 2017) KPIs include full twelve month performance of all Regional Ireland hotels
and Maldron Hotel Shandon Cork City (September regardless of when acquired
2016)
2017 Full Year Results
Delivering Our Promise
Slide | 13UK | Full Year Performance
Strong RevPAR growth of 9.6%
All figures £million 2017 2016
Hotels in the London portfolio achieved strong
Total revenue 61.1 55.5
RevPAR growth of 11.9% surpassing the market
growth of 4.4% EBITDAR 23.7 21.9
Rent (2.9) (3.3)
Very strong performance versus market in the
Provincial UK cities of Cardiff, Leeds & Manchester EBITDA 20.8 18.6
EBITDAR margin 38.8% 39.4%
As anticipated EBITDAR margin at Clayton Hotel
Birmingham was low in H2 as it takes time and
cost to implement the Dalata decentralised
model. Excluding this hotel and the disposal of KPIs 2017 2016
Croydon Park Hotel, EBITDAR margin increased Occupancy 83.0% 80.3%
from 40.2% to 40.5% despite cost pressures
Average Room Rate (£) 80.31 75.67
Rent fell due to (i) sale of Croydon Park Hotel in RevPAR (£) 66.64 60.78
June 2017 (first acquired in March 2016), (ii)
purchase of the freehold interest in Clayton Hotel KPIs include full twelve month performance of all UK hotels regardless of when
Cardiff in November 2016 and subsequent sale and acquired (except Croydon Park Hotel which was sold on 30 June 2017 and is
excluded from the KPIs)
leaseback in June 2017 at a lower rent. These two
reductions were offset to a degree by entering
into a new lease for Clayton Hotel Birmingham in
August 2017
2017 Full Year Results
Delivering Our Promise
Slide | 14Strong Balance Sheet Providing
Covenant for Growth
31 Dec 31 Dec Strong balance sheet with an attractive covenant to
All figures €million secure future leases
2017 2016
Non-current assets Strongly located hotel assets with market value
Property, plant and of close to €1 billion
998.8 822.4
equipment
Low level of gearing with net debt to adjusted
Other non-current assets 64.1 64.2 EBITDA of 2.4x
Current assets
Loans to Tangible Asset ratio of 26%
Trade receivables, inventory
22.5 17.7
and other €196.5 million (£174.4 million) of loans held in
Cash 15.7 81.1 sterling to provide a natural hedge against
fluctuations in the value of sterling
Total assets 1,101.1 985.4
Other non-current assets include goodwill €54.6
million, investment property €1.6 million, deferred
Equity 737.4 620.4 tax assets €3.6 million and other non-current
Bank loans 260.1 280.4 receivables related to operating leases €4.3 million
Trade and other payables 64.9 52.1 Other liabilities include deferred tax liabilities €31.9
million, derivatives €1.8 million and provision for self
Other liabilities 38.7 32.5 insurance €4.7 million
Total equity and liabilities 1,101.1 985.4
2017 Full Year Results
Delivering Our Promise
Slide | 15Strong Cashflow to Fund Pipeline and
Further Growth
All figures €million 2017 2016
Adjusted EBITDA 104.9 85.1
Net cash from operating activities 95.2 77.8
Interest and finance costs paid (10.1) (10.0)
Maintenance capital expenditure (14.6) (12.4)
Adjusting cash items1 1.3 4.0
Cash generated to fund debt repayment, acquisitions and
71.8 59.4
development activity
Cash conversion 68.4% 69.8%
1 Acquisition costs of €1.3m (FY 2016: €2.7m) and stock exchange listing costs of €1.3m in FY 2016
2017 Full Year Results
Delivering Our Promise
Slide | 16Clayton Hotel, Limerick STRATEGY – DRIVING PORTFOLIO GROWTH
Current Pipeline – Over 2,200 new rooms
Property New Extension Rooms Planning Construction Completion
Dublin Granted Started
Clayton Hotel Charlemont x 188 x x Nov 2018
3 New Hotels Maldron Hotel Kevin Street x 138 x x June 2018
3 Extensions Clayton Hotel Ballsbridge x 31 x x Aug 2018
656 rooms Clayton Hotel Dublin Airport x 106 x x May 2018
Maldron Hotel Parnell Square x 53 x x Dec 2018
Maldron Hotel Merrion Road (to
x 140 x Q3 2020
replace Tara Towers Hotel)
Regional Ireland Property New Extension Rooms Planning Construction Completion
Granted Started
1 New Hotel
Maldron Hotel South Mall, Cork x 164 x x Dec 2018
1 Extension Maldron Hotel Sandy Road, Galway x 63 x x June 2018
227 Rooms
UK Property New Extension Rooms Planning Construction Completion
Granted Started
1 New Owned Hotel Maldron Hotel Belfast City x 237 x x Mar 2018
Maldron Hotel, Newcastle* x 264 x x Feb 2019
4 New Leased Hotels
Maldron Hotel, Glasgow* x 250 Q2 2020
1,351 Rooms Clayton Hotel, Glasgow* x 300 Q4 2020
Clayton Hotel, Manchester* x 300 Q1 2021
*35 year operating lease
2017 Full Year Results
Delivering Our Promise
Slide | 18UK| Fragmented Market offering Structural
Opportunity
We have identified 20 target cities in the UK which are suitable for Maldron and Clayton
Large structural opportunity exists in the 3 & 4 star segments of these markets for a number of reasons:
International brands are increasingly evolving to a franchise model leaving a shortage of operators
with any scale
Fragmented market in terms of:
• Brands
• Ownership
• Operators
The stock of 3 and 4 star hotels is considerably older than the age profile of the Budget sector with over
40% of the rooms over 40 years old
2017 Full Year Results
Delivering Our Promise
Slide | 19UK | Clear Competitive Advantage in
Fragmented Market
Dalata Competition
Financial resources – Willing to put strong balance sheet behind – Large brands won’t own or lease
and ability to secure strategy to own or lease – Weak balance sheets for smaller
sites – Very attractive to developers and property operators
investors
Depth of hotel – Management and staff avail of comprehensive – Difficult for smaller operators or
operational training & development programmes larger Third Party Operators
expertise & (TPOs) to provide same level of
– Opportunity for internal growth for all our
resources training or opportunity due to
people
lack of tenure (TPOs) or scale
– Highly motivated management teams with (independent operators)
large growing hotel group
– Support of Central Office functions
Senior Management – Existing management platform in place in the – Not clear that same level of
Team UK experience exists within TPOs or
independent operators
– Decentralised operating structure
– Large brands dependent on
– Senior management team has operated in UK
owners to roll out their brands
hotel market for over 20 years
– Senior management team created, rolled out
and operated a new brand in the UK
previously with Jurys Inn
2017 Full Year Results
Delivering Our Promise
Slide | 20UK| Key Objectives in Target UK 20 cities
Our objective is to become the leading 3/4 star operator in our target
city markets
Target range of 10% to 15% market share of 3/4 star market in each city
Translates to circa 7,000 rooms on top of current pipeline (assuming a
12.5% market share achieved) in 5 – 7 years
Further opportunities are likely to exist in the Greater London area and
adjacent to UK airports but we will look to address those opportunities in
a more bespoke manner as and when they arise
2017 Full Year Results
Delivering Our Promise
Slide | 21Early examples of UK expansion strategy
Clayton| Birmingham Clayton | Manchester
Existing Asset Development Asset
Bought in July 2017 for £31m Agreement for lease contracts exchanged
Sold freehold to Deka Immobilien and entered a Currently in planning process
35 year lease at initial rent of £1.6m p.a. Excellent city centre location – Portland Street
Modern hotel with 174 rooms, restaurant, bar Circa 300 bedroom new build Clayton hotel with
and extensive meeting facilities extensive conference facilities
Exploring potential to add a further 40 rooms Local well regarded developer – Property Alliance
Have identified significant opportunities to Group
reduce costs and increase revenues
Target opening Q1 2021
Rebranded as a Clayton hotel in October
2017 Full Year Results
Delivering Our Promise
Slide | 22Early examples of UK expansion strategy
Clayton Glasgow | Clyde Street Maldron Glasgow | Renfrew Street
Development Asset Development Asset
Agreement for lease contracts exchanged
Planning application in Q1 2018 Agreement for lease contracts exchanged
with McAleer & Rushe
Circa 300 bedroom new build Clayton Hotel
with extensive conference facilities Planning application in Q1 2018
Very close to retail and leisure attractions Circa 250 bedroom new build Maldron Hotel
International Financial Services District within 5 Located in the centre of Glasgow
minute walk Target opening Q2 2020
Developer partner is Artisan Real Estate
Investors
Target opening Q4 2020
2017 Full Year Results
Delivering Our Promise
Slide | 23Maldron Hotel, Smithfield Dublin STRATEGIC PRIORITIES
Strategic Priorities|Difference with Dalata
OUR CUSTOMERS OUR PEOPLE
Listening to Decentralise
Our their
Peoplefeedback responsibility
(decentralise Our customers
responsibility) (listening to
DRIVING their feedback)
SHAREHOLDER
RETURNS
OUR BRANDS
Independent &
fresh
OUR GROWTH
Owned & Leased
model
2017 Full Year Results
Delivering Our Promise
Slide | 25Our Customers
We want to know what our customers think
– Received and processed over 120,000 customer reviews
– Commissioned market research, getting views of 1,000 consumers
on our brands, websites and products
We react to feedback
– Over €14.6 million invested in product refurbishment during 2017
– Over 2,200 rooms refurbished since 2015
– Brand websites redesigned to make booking journey easier
– Launch of ‘Click on Clayton’ and ‘Make it Maldron’
– Training courses developed to address service weaknesses
– Technology introduced to aid us better serve our customer
2017 Full Year Results
Delivering Our Promise
Slide | 26Our Growth
Further progress achieved in 2017 Owned and leased portfolio
9,000 38
Purchased effective freehold interest of Maldron
Hotel Portlaoise and 232 rooms at Clayton Hotel 35
8,000 34
Cardiff Lane (both previously leased)
7,000
Purchased 257 rooms in three separate 27
transactions at Clayton Hotel Liffey Valley 6,000
5,000
Secured lease to operate now rebranded Clayton
15
Hotel Birmingham (174 rooms) 4,000
3,000 12
Entered into agreements for lease for 3 new
hotels (850 rooms) in Glasgow and Manchester
2,000
Identified 20 target cities in the UK for Clayton 1,000
and Maldron
0
Targeting to announce 1,200 new 2013 2014 2015 2016 2017 2018
rooms per annum Room numbers Number of hotels
Estimate
2017 Full Year Results
Delivering Our Promise
Slide | 27Our People
LYNN, current GM at Maldron ANN MARIE, previous GM
Dublin Airport appointed GM at Maldron Smithfield
appointed GM
DARA, current Deputy GM at
Clayton Dublin Airport PATRICK, previous Deputy
replaces Lynn Clayton Hotel Maldron Hotel GM at Maldron Parnell
Square replaced Ann Marie
Charlemont, Kevin Street,
Dublin Dublin
Difference
with
Dalata
Maldron Hotel Maldron Hotel
South Mall, Cork Belfast City
ROBERT, current GM at Maldron MIKE, previous GM at Maldron
Shandon Cork City appointed GM Derry appointed GM
TRACY, current Deputy GM at LINDA, previous Deputy GM
Clayton Silver Springs replaces at Clayton Leopardstown
Robert replaced Mike
2017 Full Year Results
Delivering Our Promise
Slide | 28Our Brands
We own all our brands and are
the sole operators to ensure
consistency and control of
standards
Clayton and Maldron are Ireland’s two largest hotel brands with a growing presence in the larger cities in the UK
Club Vitae is the largest leisure centre brand in Ireland
Red Bean Roastery Coffee brand has been rolled out to 16 hotels across the portfolio with another 18 hotels planned
for 2018
The first standalone Red Bean Roastery coffee shop was opened adjacent to Clayton Hotel Leopardstown in 2017 with
another three planned at Clayton Hotel Cardiff Lane, Clayton Hotel Charlemont and Maldron Hotel South Mall
Grain & Grill restaurant brand has now been rolled out at all our Maldron hotels
2017 Full Year Results
Delivering Our Promise
Slide | 29Investing in Technology to deliver on
our strategy
Dalata comprises primarily a portfolio of hotels acquired in multiple separate transactions since
mid 2014
Background There were multiple different systems platforms at the various hotels
Alkimii human resources management system rolled out across the group in 2016
Objectives of project are to (i) streamline and consolidate processes, (ii) increase controls, (iii)
deliver efficiencies and (iv) improve further management reporting
There are three key components:
Project Evolve
A single accounting platform Sage 200 was introduced across all units in July 2017
2017/2018 Procure Wizard, a new procurement system currently being implemented
Shared Service Centre has been established in Cork to manage routine administration
work in a highly efficient manner supported by the new technology
Roll out of Opera Cloud PMS to non Opera PMS Hotels by end of Q1 2018, Opera Cloud to replace
Property Opera at other hotels within the next 3 years
Management
Web based group database housed in Oracle’s data centre
Systems &
Revenue Real time rates and inventory integration to all main distribution channels
Management Implementation of IDEAS Revenue Management System to aid the Revenue manager in decision
making by providing powerful analytics in selected hotels
2017 Full Year Results
Delivering Our Promise
Slide | 30Clayton Hotel Galway OUTLOOK
2018 Outlook
Trading is marginally ahead of our expectations for Q1 2018
Our construction projects for new hotels and extensions continue to progress on target and within
budget
We continue to actively seek out opportunities to expand our portfolio in the UK and are confident
that we will meet our goal of securing a further 1,200 rooms during 2018
We are very encouraged by the reaction of developers and potential investors to the strength of
our balance sheet covenant and operational expertise
The Board intends to commence the payment of dividends from 2018 onwards. The Board has
adopted a progressive dividend policy with the payout based on a percentage of profit after tax
which is expected to be in the range of 20% to 30%. An interim dividend will be declared with the
interim results in September 2018
2017 Full Year Results
Delivering Our Promise
Slide | 32New Italian Kitchen at Clayton Hotel Dublin Airport APPENDICES
Market Review | Regional Ireland
Cork 2016 2017
Occupancy 77.2% 79.8%
ARR €85.79 €96.99
RevPAR €66.23 €77.35
RevPAR % Variance 13.3% 13.6%
Galway 2016 2017
Occupancy 77.0% 76.8%
ARR €97.55 €104.38
RevPAR €75.09 €80.15
RevPAR % Variance 10.7% 7.6%
Limerick 2016 2017
Occupancy 70.0% 72.1%
ARR €69.36 €76.03
RevPAR €48.52 €54.82
RevPAR % Variance 16.4% 13.2%
Source: trending.ie
Strong RevPAR growth in all three cities
No increases in supply and very little supply in pipeline
2017 Full Year Results
Delivering Our Promise
Slide | 34Market Review | United Kingdom
RevPAR Growth % 2016 2017
London -0.9% 4.4%
Manchester 5.7% 0.9%
Birmingham 7.7% 2.3%
Cardiff -1.1% 8.0%
Leeds 3.7% -0.7%
Belfast 9.0% 16.8%
Source: treding.ie
London market benefitted from weak pound and increased
demand in the city. Noted slowdown in H2 2017
Mixed performance at four regional cities
Leeds is impacted by challenges in the corporate market
leading to reduced transient rates
Existing location for Dalata
New hotel location in pipeline
2017 Full Year Results
Delivering Our Promise
Slide | 35Refurbishment Programme
Rooms Refurbished 2015 2016 2017 Total
Over €23.3 million invested in 2,270 rooms
since 2015
373 138 168 679
Over €8.5 million invested in FY 2017
Standardised room templates for Clayton
260 610 721 1,591 and Maldron brands driving investment
efficiencies
Total 2,270
% of total leased and owned rooms 31%
2017 Full Year Results
Delivering Our Promise
Slide | 36Anticipated effect of IFRS 16
As leaseholds become a bigger feature of our portfolio the changing accounting requirements of IFRS 16 are very
relevant to Dalata
Despite the significant impact of the accounting change on our financial statements we foresee:
NO impact on our strategy
NO impact on our commercial negotiations for leases
NO impact on our cashflows
Further information was provided in our 2017 Capital Markets Day presentation at
http://dalatahotelgroup.com/investors
Effect on Dalata Financial Statements
Balance sheet The distinction between operating and finance leases is removed for lessees and almost all leases will
impact come on the balance sheet as a lease liability and a right-of-use (“RoU”) asset.
Profit or loss The rent expense will be replaced by:
impact • An annual interest charge on the lease liability
• Depreciation on the right of use asset
This will result in increased EBITDA but frontloading of interest costs will reduce profits early on in
the life of the lease.
Variable lease payments which are dependent on external factors such as hotel performance will be
recognised directly in profit or loss.
Cashflow impact No impact on actual pre-tax cash flows. Tax effect currently under review by tax authorities.
2017 Full Year Results
Delivering Our Promise
Slide | 37Capitalised Interest
Dalata has a significant programme of development for both new hotels and extensions
Accounting standards require interest for borrowings related to the acquisition or construction of a
qualifying asset be capitalised as part of the cost of that asset
The borrowings do not necessarily have to be drawn specifically for the project but can be general
borrowings that could have been avoided if expenditure had not been spent
The weighted average borrowing rate for each of the sterling and euro loans, including hedging if
applicable, is used depending on the asset location
FY 2017: €1.6 million (2016 not material)
2017 Full Year Results
Delivering Our Promise
Slide | 38Foreign Exchange Effects
Sterling exchange rate has significant impact on earnings
Weighted average exchange rate for EBITDA for FY 2017 was 0.8772 (FY 2016: 0.8266)
On a constant currency basis 2017 EBITDA would have been €1.6 million higher however, interest,
depreciation and tax would also have been higher. As a result Profit After Tax would have been
€0.8 million higher
2017 Full Year Results
Delivering Our Promise
Slide | 39Strong, Complementary Brand Proposition
Maldron is all about providing a fun, relaxed time for all You can always depend on Clayton Hotels to deliver
who arrive through our doors. Our great-value hotels are exactly what you need, whether that’s a weekend
found in convenient locations close to local attractions - away, a family break or an important business
Brand ensuring there’s always plenty to see and do. With friendly, meeting. From the comfort of our bedrooms to the
Proposition helpful staff, good food and excellent facilities, it’s the quality of our facilities and the warm, helpful attitude
perfect place to enjoy good times with family and friends of our staff - every detail is handled with care
Rest assured, it’s a Maldron Where every moment matters
Generally standard rooms, with family and executive rooms
Bedrooms in some locations
Standard, superior and executive rooms
Modern bar, restaurant and coffee dock. Food and
Food and Integrated bar and restaurant in some locations. Simple
beverage offering based on local influences and freshly
Beverage menus made from fresh quality produce
sourced premium ingredients
Conference Extensive choice of modern meeting rooms and events
Meeting room facilities
Facilities facilities
Target Both leisure and corporate with main focus on leisure Focus on corporate and conference midweek. Leisure,
Customers guests and family functions and weddings at weekend
2017 Full Year Results
Delivering Our Promise
Slide | 40Owned & Leased Portfolio
at February 2018
Owned Hotels / Freehold Equivalent Lease Agreements
Hotel Rooms Hotel Rooms
Clayton Hotel Dublin Airport
Clayton Hotel Manchester Airport
504
365
Clayton Hotel Burlington Road, Dublin
Ballsbridge Hotel, Dublin
502
400
26 owned hotels
Clayton Hotel Leopardstown, Dublin
Clayton Hotel Leeds
354
334
The Gibson Hotel, Dublin
Maldron Hotel Dublin Airport
252
251
with 5,247 rooms
Clayton Hotel Ballsbridge, Dublin 304 Clayton Hotel Cardiff, Wales 216
Clayton Hotel Cardiff Lane, Dublin (1) 304 Clayton Hotel Birmingham 174
Maldron Hotel Newlands Cross, Dublin
Clayton Hotel Liffey Valley, Dublin (2)
297
257
Maldron Hotel Tallaght, Dublin
Maldron Hotel Galway (Oranmore)
119
113 9 leased hotels
Clayton Hotel Chiswick, London 227 Maldron Hotel Smithfield, Dublin 92
Clayton Hotel Cork City (3) 201 Total 2,119 with 2,119 rooms
Clayton Hotel Galway 195
New pipeline
Clayton Hotel Belfast 170
Owned
Clayton Hotel Sligo 162
Clayton Whites Hotel, Wexford
Clayton Hotel Limerick
160
158
Clayton Hotel Charlemont, Dublin
Maldron Hotel Kevin Street, Dublin
188
138 9 new hotels in
Maldron Hotel South Mall, Cork
Clayton Crown Hotel, London 152
Maldron Hotel Belfast City
164
237 pipeline with 2,234
Maldron Hotel Limerick 142
Maldron Hotel Parnell Square, Dublin 129
Maldron Hotel Merrion Road, Dublin
Extension
140
rooms
Maldron Hotel Pearse Street, Dublin 118
Tara Towers Hotel, Dublin 109
Clayton Hotel Ballsbridge, Dublin 31 (including extensions)
Clayton Hotel Dublin Airport 106
Clayton Hotel Silver Springs, Cork 109
Maldron Hotel Parnell Square, Dublin 53
3 management
Maldron Hotel Wexford 108
Maldron Hotel Sandy Road, Galway 63
Maldron Hotel Sandy Road, Galway 104
Leased
Maldron Hotel Shandon Cork City 101
Maldron Hotel Derry 93
Maldron Hotel, Newcastle
Clayton Hotel, Manchester
264
300
agreements with
Maldron Hotel Portlaoise 90
Total 5,247
Clayton Hotel, Glasgow
Maldron Hotel, Glasgow
300
250
308 rooms
(1) Dalata own 252 rooms and lease 52 rooms
(2) Remaining 95 rooms owned by third parties Total 2,234
(3) Dalata own 194 rooms and lease 7 apartments
2017 Full Year Results
Delivering Our Promise
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