2024
financial performance
|
€million
|
2024
|
2023
|
|
|
|
|
|
Revenue
|
652.2
|
607.7
|
|
Hotel EBITDAR1
|
259.5
|
252.3
|
|
Hotel variable lease costs
|
(2.6)
|
(3.7)
|
|
Hotel EBITDA1
|
256.9
|
248.6
|
|
Other income
|
1.5
|
1.5
|
|
Central costs
|
(20.3)
|
(21.1)
|
|
Share-based payments expense
|
(3.6)
|
(5.9)
|
|
Adjusted EBITDA1
|
234.5
|
223.1
|
|
Adjusting items3 (which
impact EBITDA)
|
(2.7)
|
(2.9)
|
|
Group EBITDA1
|
231.8
|
220.2
|
|
Depreciation of property, plant and equipment and
amortisation
|
(39.6)
|
(33.4)
|
|
Depreciation of right-of-use assets
|
(33.8)
|
(30.7)
|
|
Operating profit
|
158.4
|
156.1
|
|
Interest on lease liabilities
|
(49.5)
|
(42.8)
|
|
Other interest and net finance costs
|
(17.7)
|
(7.8)
|
|
Profit before tax
|
91.2
|
105.5
|
|
Tax charge
|
(12.5)
|
(15.3)
|
|
Profit for the year
|
78.7
|
90.2
|
|
|
|
|
|
Earnings per share (cents) - basic
|
35.5
|
40.4
|
|
Adjusted earnings per share1 (cents) -
basic
|
40.4
|
41.7
|
|
Hotel EBITDAR margin1 - all
hotels
|
39.8%
|
41.5%
|
|
Group KPIs (as reported)
|
|
|
|
|
|
|
|
RevPAR1
(€)
|
116.33
|
114.67
|
|
Occupancy
|
79.6%
|
80.0%
|
|
Average room rate (ARR) 1
(€)
|
146.19
|
143.36
|
|
|
|
|
|
‘Like for like’ Group
KPI's1
|
|
|
|
|
|
|
|
RevPAR1
(€)
|
115.78
|
114.66
|
|
Occupancy
|
80.4%
|
80.3%
|
|
Average room rate (ARR) 1
(€)
|
143.98
|
142.85
|
Summary
of hotel performance
The Group delivered revenue of €652.2 million in 2024,
representing growth of €44.5m (7.3%) versus 2023. This converted to
€234.5 million of Adjusted EBITDA1, a 5.1%
increase on 2023 levels. Growth is driven by additions to the
portfolio during 2024 and the full year impact and ramp up of the
hotels added during 2023, which together contributed €14.0 million
to Adjusted EBITDA1 growth.
This was partially offset by a decrease of €7.2 million at the
‘like for like’4 hotels,
primarily driven by trade at the Irish portfolio in the first half
of the year.
‘Like for like’4 Group
RevPAR1 of €115.78
was 1.0% ahead of 2023. From May, trade at the Irish portfolio
improved as the Dublin market digested the additional supply both
in the form of new entrants and the return of rooms out of the
market for government use for refugees. The Irish portfolio also
absorbed the increased VAT rate from September 2023 (up 4.5%).
RevPAR1 for the
portfolios in Dublin and Regional Ireland decreased marginally
versus 2023, however the RevPAR1 movement
for the Dublin portfolio outperformed the wider market. The UK
portfolio performed well throughout the year achieving ‘like for
like’4
RevPAR1 growth of
2.8%. Room revenue from corporate demand remains robust and ahead
of 2023 levels. The Group also continues to benefit from strong
corporate and tour business and achieved average room rates ahead
of 2023.
The Group achieved food and beverage (‘F&B’) revenue
growth of 5.9% in 2024 to €123.9 million (2023: €117.0 million),
driven by portfolio growth. ‘Like for like’4 F&B
revenue increased by 0.9% and the Group has maintained
profitability despite the higher pay rates.
On a ‘like for like’4 basis, the
Group’s hotel cost base increased by 3.3% to €345.6 million led by
payroll increases notably in statutory minimum pay rates in both
Ireland and the UK. The National Minimum Wage increased by 12.4% in
Ireland from January 2024 (January 2023 increase: 7.6%) and the
National Living Wage increased by 9.8% in the UK from April 2024
(April 2023 increase: 9.7%). Labour costs represent approximately
40% of hotel costs and with limited RevPAR1 growth in
the first half of the year this resulted in a decrease of 140 bps
to ‘LFL’4 Hotel
EBITDAR margin1. The impact
of cost inflation would have led to a deterioration in “LFL” Hotel
Margin1 of 280bps
however the impact was halved due to innovation and efficiency
projects (75 bps “saving”) and lower year on year energy costs (65
bps “saving”).
The Group continues to manage inflationary pressures through
initiatives that drive efficiency whilst also enhancing or
maintaining customer and employee experiences. The projects rolled
out in 2023 continued to have a strong impact during 2024 with the
Group successfully reducing hours worked in the accommodation and
food and beverage departments by 7% for the Irish portfolio versus
2023 on a ‘like for like’4 basis. The
Group’s relentless focus on sustainability has also achieved a
reduction in energy consumption per room sold of 3% versus 2023,
and a total reduction of 24% versus 2019 levels.
Overall, the Group delivered Hotel EBITDAR1 of €259.5
million, representing 2.9% growth. This includes a saving from
innovation and efficiency initiatives and reduction in energy
consumption of €4.4 million and energy pricing reduction of €3.7
million during the year. The Group continues to integrate and drive
performance at the newly added hotels including the two London
hotels and a hotel in Amsterdam added to the portfolio in 2023 and
the four new Maldron hotels opened during 2024.
|
All hotels
€million
|
Revenue
|
Operating costs
|
Adjusted EBITDA1
|
|
Year ended 31 December 2023
|
607.7
|
(384.6)
|
223.1
|
|
Movement at ‘like for like’4
hotels
|
(0.1)
|
(7.1)
|
(7.2)
|
|
Hotels added to the portfolio during either
year7
|
40.6
|
(26.6)
|
14.0
|
|
Movement at hotels which have exited the portfolio in 2024
and 2025
|
(1.0)
|
0.6
|
(0.4)
|
|
Movement in other income and Group expenses
|
-
|
3.1
|
3.1
|
|
Effect of FX
|
5.0
|
(3.1)
|
1.9
|
|
Year ended 31 December
2024
|
652.2
|
(417.7)
|
234.5
|
Performance
review | Segmental analysis
The following section analyses the results from the Group’s
portfolio of hotels in Dublin, Regional Ireland, the UK and
Continental Europe.
-
Dublin Hotel Portfolio
|
€million
|
2024
|
2023
|
|
As reported (all hotels)
|
|
|
|
Room revenue
|
214.7
|
216.9
|
|
Food and beverage revenue
|
51.9
|
51.3
|
|
Other revenue
|
17.2
|
17.9
|
|
Revenue
|
283.8
|
286.1
|
|
Hotel EBITDAR1
|
132.3
|
135.9
|
|
Hotel EBITDAR margin1
%
|
46.6%
|
47.5%
|
|
|
|
|
|
Performance statistics (all
hotels)
|
|
|
|
RevPAR1
(€)
|
132.02
|
133.87
|
|
Occupancy
|
83.5%
|
84.0%
|
|
Average room rate (ARR)1
(€)
|
158.08
|
159.35
|
|
|
|
|
|
Dublin owned and leased
portfolio
|
|
|
|
Hotels at year end
|
17
|
17
|
|
Room numbers at year end
|
4,446
|
4,439
|
The Dublin portfolio consists of eight Maldron hotels and
seven Clayton hotels, The Gibson Hotel and The Samuel Hotel. Ten
hotels are owned, and seven hotels are operated under leases. There
has been a minor increase in room numbers in the portfolio driven
by the conversion of meeting space to bedrooms at one
hotel.
2024 RevPAR1 for the
Dublin portfolio decreased by 1.4% versus 2023, outperforming the
Dublin market (-2.2%). The portfolio achieved occupancy of 83.5%
with ARR1 of €158.08
representing a decrease of 0.8% decrease versus 2023. The Dublin
market faced a challenging start to the year, primarily due to the
absorption of additional supply and the 4.5% VAT increase
implemented in September 2023. Trade improved as the year
progressed supported by a number of key events which drove demand.
Occupancy rates in Dublin remain strong with the city achieving the
second highest occupancy for 2024 versus other European cities as
reported by STR (Smith Travel Research). Dalata’s Dublin portfolio
achieved 95 compression nights where occupancy surpassed 95%,
compared to 60 in the broader market.
Total revenue for 2024 was €283.8 million, 0.8% behind 2023
levels, driven by lower RevPAR1. Food and
beverage revenue of €51.9 million was 1.3% ahead of 2023 levels
(€51.3 million).
The Dublin portfolio delivered Hotel
EBITDAR1 of €132.3
million for the year ended 31 December 2024, representing a 2.6%
decline versus 2023 driven by the softer trading environment in the
first half of the year along with a 12.4% increase in the National
Minimum Wage rate from January 2024. The portfolio achieved a Hotel
EBITDAR margin1 of 46.6%
for 2024, just 90 bps lower than 2023 despite the significant
increase in its largest cost, labour costs, supported by the
efficiency and innovation projects in addition to lower energy
pricing in the first half of 2024.
2.
Regional Ireland Hotel Portfolio
|
€million
|
2024
|
2023
|
|
As reported (all hotels)
|
|
|
|
Room revenue
|
72.6
|
73.2
|
|
Food and beverage revenue
|
29.0
|
30.3
|
|
Other revenue
|
8.9
|
8.8
|
|
Revenue
|
110.5
|
112.3
|
|
Hotel EBITDAR1
|
35.0
|
37.0
|
|
Hotel EBITDAR margin1
%
|
31.7%
|
33.0%
|
|
|
|
|
|
Performance statistics (‘like for
like’4)
|
|
|
|
RevPAR1
(€)
|
109.56
|
110.16
|
|
Occupancy
|
77.2%
|
80.1%
|
|
Average room rate (ARR)1
(€)
|
141.93
|
137.56
|
|
Hotel EBITDAR margin1
%
|
33.1%
|
34.5%
|
|
|
|
|
|
Regional Ireland owned and leased
portfolio
|
|
|
|
Hotels at year end
|
12
|
13
|
|
Room numbers at year end
|
1,759
|
1,867
|
Following the disposal of the Group’s two hotels in Wexford
in November 2024 and January 2025, the Regional Ireland hotel
portfolio comprises of six Maldron hotels and five Clayton hotels
located in Cork (x4), Galway (x3), Limerick (x2), Portlaoise and
Sligo. Ten hotels are owned, and one is operated under a
lease.
‘LFL’4
RevPAR1 for the
Regional Ireland portfolio decreased by 0.5% versus 2023 levels.
While occupancy was 290 bps below 2023 at 77.2%, the portfolio
achieved a strong increase in ARR of 3.2% despite having absorbed a
4.5% VAT increase from September 2023. For reporting on ‘like for
like’4 hotels, the
two Wexford hotels, Maldron Hotel Wexford and Clayton Whites Hotel
are excluded. However, the sale of the Clayton Whites Hotel was
completed in January 2025.
Total revenue for 2024 was €110.5 million, €1.8 million
(1.6%) behind 2023 levels, with lower food and beverage (‘F&B’)
revenue on reduced occupancy levels.
The region delivered Hotel EBITDAR1 of €35.0
million for the year ended 31 December 2024, representing a 5.5%
decline on 2023 driven by additional payroll costs. On a ‘like for
like’4 basis the
portfolio achieved an EBITDAR margin1 of 33.1%
for 2024, 140 bps lower than 2023 despite the significant increase
in its largest cost following the National Minimum Wage increase of
12.4% in January 2024. The impact of innovation and efficiency
projects, as discussed previously, have helped limit the impact on
profitability, along with the benefits from lower energy
pricing in the first half of
2024.
3.
UK Hotel Portfolio
|
Local currency - £million
|
2024
|
2023
|
|
As reported (all hotels)
|
|
|
|
Room revenue
|
149.6
|
127.3
|
|
Food and beverage revenue
|
29.1
|
26.5
|
|
Other revenue
|
8.0
|
8.0
|
|
Revenue
|
186.7
|
161.8
|
|
Hotel EBITDAR1
|
68.4
|
62.2
|
|
Hotel EBITDAR margin1
%
|
36.6%
|
38.4%
|
|
|
|
|
|
Performance statistics (‘like for
like’4)
|
|
|
|
RevPAR1
(£)
|
86.63
|
84.28
|
|
Occupancy
|
79.8%
|
77.9%
|
|
Average room rate (ARR)1
(£)
|
108.60
|
108.13
|
|
Hotel EBITDAR margin1
%
|
37.4%
|
38.9%
|
|
|
|
|
|
UK owned and leased
portfolio
|
|
|
|
Hotels at year end
|
22
|
18
|
|
Room numbers at year end
|
5,080
|
4,242
|
At 31 December 2024, the UK hotel portfolio comprised 12
Clayton hotels and ten Maldron hotels. Five hotels are situated in
London, four in Manchester following the opening of Maldron Hotel
Manchester Cathedral Quarter in May, ten in other large regional UK
cities and three in Northern Ireland. Ten hotels are owned and 12
are operated under a long-term lease.
‘LFL’4
RevPAR1 for the UK
portfolio increased by 2.8% for 2024 versus 2023 levels, with
increases in both occupancy (+190 bps) and ARR1
(+0.4%). The Group’s hotels in
Regional UK continued to build on a solid performance in the
first half of the year, achieving RevPAR1 growth of
2.8% in 2024 on a ‘like for like4 basis’. The
‘LFL’4 London
hotels grew RevPAR1 by 2.6% in
2024 having performed particularly well in the second half of
2024.
Overall, total revenue for 2024 was £186.7 million, £24.9
million (15.4%) ahead of 2023 levels. The hotels recently added to
the portfolio contributed £21.4 million of uplift, including the
full year impact and ramp up of the two London hotels added in 2023
and the impact from the four new Maldron hotels opened in 2024. The
‘like for like’4 hotels
contributed £3.5 million of growth led by strong performance of the
hotels added in 2022 particularly in Bristol and Glasgow which was
partially offset by the hotels in Manchester which were impacted by
challenging market dynamics as a result of additional
supply.
The UK portfolio delivered Hotel EBITDAR1 of £68.4
million, £6.2m (10.0%) ahead of 2023 levels. The uplift was driven
by hotels added to the portfolio during 2023 and 2024.
On a ‘like for like’4 basis the
portfolio achieved an EBITDAR margin1 of 37.4%
for 2024, 150 bps lower than 2023, reflecting the increased cost
environment, particularly the 9.8% increase in the National Living
Wage from April 2024 which followed an April 2023 increase of 9.7%.
The Group uses agency staff in the UK primarily in the
accommodation department, however, the Group has brought rooms
cleaning in-house at two of its hotels. This initiative is designed
to replicate the productivity gains achieved through the efficiency
project in Ireland, and early outcomes have been promising. Dalata
are also looking at other UK hotels where this approach could be
beneficial, alongside the rollout of additional efficiency
measures, such as the successful introduction of self-check-in pods
at reception.
4.
Continental Europe Hotel Portfolio
|
€million
|
2024
|
2023
|
|
As reported (all hotels)
|
|
|
|
Room revenue
|
27.0
|
16.4
|
|
Food and beverage revenue
|
8.6
|
4.9
|
|
Other revenue
|
1.5
|
1.7
|
|
Revenue
|
37.1
|
23.0
|
|
Hotel EBITDAR1
|
11.3
|
7.7
|
|
Hotel EBITDAR margin1
%
|
30.4%
|
33.6%
|
|
|
|
|
|
Continental Europe leased
portfolio
|
|
|
|
Hotels at year end
|
2
|
2
|
|
Room numbers at year end
|
566
|
566
|
The Continental Europe hotel portfolio includes Clayton Hotel
Düsseldorf (393 rooms) which was added to the portfolio in February
2022 and Clayton Hotel Amsterdam American (173 rooms) which was
added in October 2023.
Revenue and Hotel EBITDAR1
comparability is skewed year on year due to the addition of
Clayton Hotel Amsterdam American which was added in the last
quarter of 2023.
Clayton Hotel Düsseldorf performed well during the year
despite the challenging backdrop of the German economy as the city
benefited from hosting five major sporting events as part of UEFA
Euro 2024 which attracted demand from all over the world. Clayton
Hotel Amsterdam American has continued to progress and has secured
high occupancies in 2024. The two hotels achieved a combined Rent
Cover1 of 1.3x for
2024.o
Central
costs and share-based payment expense
Central costs totalled €20.3 million for 2024 (2023: €21.1
million). The decrease is primarily driven by reduced
bonus expense for directors in 2024 versus 2023.
Adjusting
items
|
€million
|
2024
|
2023
|
|
|
|
|
|
Hotel pre-opening expenses
|
(1.9)
|
(0.5)
|
|
Acquisition-related costs
|
(1.1)
|
(4.4)
|
|
Impairment charges
|
(1.4)
|
-
|
|
Impairment reversal relating to right-of-use
assets
|
1.7
|
-
|
|
Net property revaluation movements through profit or
loss
|
-
|
2.0
|
|
Adjusting items impacting
EBITDA
|
(2.7)
|
(2.9)
|
|
Modification loss on refinancing
|
(7.5)
|
-
|
|
Tax adjustment for adjusting items
|
(0.5)
|
(0.1)
|
|
Adjusting items impacting profit
after tax
|
(10.7)
|
(3.0)
|
The Group incurred €1.9 million of pre-opening expenses
during the year (2023: €0.5 million). In 2024, these expenses
related to the opening of four Maldron hotels in the UK between May
and August. Acquisition-related costs of €1.1 million are related
to the professional fees incurred in the ongoing acquisition of
Radisson Blu Hotel, Dublin Airport (subject to
CCPC2 approval)
(2023: €4.4 million of costs related to the acquisition of Clayton
Hotel London Wall and the Clayton Hotel Amsterdam
American).
In line with accounting standards, impairment tests and
reversal assessments were carried out on the Group’s
cash-generating units (‘CGUs’) at 31 December 2024. Each individual
hotel is deemed to be a CGU for the purposes of impairment testing,
as the cash flows generated are independent of other hotels in the
Group. Following impairment assessments, the recoverable amount was
deemed lower than the carrying amount in one of the Group’s UK CGUs
resulting in an impairment charge of €1.3 million (£1.1 million)
relating to property, plant and equipment (2023: €nil). There was
also a nominal impairment charge on investment property. At a
separate UK CGU, which had previously incurred impairment charges,
the recoverable amount was deemed higher than the carrying amount,
resulting in an impairment reversal of €1.7 million (£1.5 million),
relating to a right-of-use assets (2023: €nil).
The Group’s property assets were revalued on 31 December
2024, resulting in unrealised revaluation gains of €13.1 million
which were reflected in full through other comprehensive income and
the revaluation reserve.
Depreciation
of right-of-use assets
Under IFRS 16, the right-of-use assets are depreciated on a
straight-line basis to the end of their estimated useful life,
typically the end of the lease term. The depreciation
of right-of-use assets increased by €3.1 million to €33.8 million
for the year ended 31 December 2024, primarily due to the three
leased hotels opened in the summer of 2024 being; Maldron Hotel
Manchester Cathedral Quarter (May 2024), Maldron Hotel Brighton
(July 2024), and Maldron Hotel Liverpool City (July 2024), in
addition to the full year impact of Clayton Hotel Amsterdam
American (October 2023).
Depreciation
of property, plant and equipment and amortisation
Depreciation of property, plant and equipment and
amortisation increased by €6.2 million to €39.6 million in 2024.
The increase primarily relates to the additional depreciation of a
freehold asset which Dalata opened in August 2024 (Maldron Hotel
Shoreditch), of fixtures and fittings at the three new leasehold
assets that became operational during the year, and of the full
year depreciation in 2024 of the two freehold assets acquired
during 2023 and fixtures and fittings acquired with the leasehold
addition of Clayton Hotel Amsterdam American (October
2023).
Finance
Costs
|
€million
|
2024
|
2023
|
|
Interest expense on bank loans
|
16.7
|
15.6
|
|
Impact of interest rate swaps
|
(7.7)
|
(6.9)
|
|
Interest on private placement notes
|
1.6
|
-
|
|
Other finance costs
|
1.2
|
1.3
|
|
Finance costs before modification loss, net foreign exchange
gain on financing activities, capitalised interest, and lease
liability interest
|
11.8
|
10.0
|
|
Capitalised interest
|
(0.6)
|
(2.0)
|
|
Modification loss
|
7.5
|
-
|
|
Net foreign exchange gain on financing activities
|
(0.8)
|
(0.2)
|
|
Interest on lease liabilities
|
49.5
|
42.8
|
|
Finance costs
|
67.4
|
50.6
|
|
Finance income
|
(0.2)
|
-
|
|
Net Finance costs
|
67.2
|
50.6
|
Finance costs related to the Group’s bank loans and private
placement loan notes (before modification loss, net foreign
exchange gain on financing activities, capitalised interest, and
lease liability interest) amounted to €11.8 million in 2024,
increasing by €1.8 million from 2023 (€10.0 million). The increase
was primarily due to the different profile of debt following the
refinance in October 2024 and additional interest on higher RCF
debt drawdowns during the year.
The Group uses interest rate swaps to convert the interest
rate on part of its bank loans from a floating rate to a fixed
rate. The interest rate swaps, which hedged the interest rate on
the previously drawn sterling term loan of £176.5 million, matured
in October 2024. As a result of the refinancing in October 2024,
the Group entered into new interest rate swaps to hedge the
variable interest rate on the new €100 million Euro green term loan
for four years to October 2028. The final year of the term debt, to
9 October 2029, is currently unhedged. The weighted average fixed
interest rate is 2.18%.
Margins on the Group’s bank loans are set with reference to
the Net Debt to EBITDA after rent1 covenant
levels and ratchet up or down accordingly. The Group’s weighted
average interest cost on bank loans, including margin, was 3.3% for
2024 (2023: 3.2%).
The private placement notes carry a fixed coupon rate.
However, where the Group's Net Debt to EBITDA after
rent1, calculated
in line with external borrowing covenants, exceeds certain ratchet
levels, varying premiums are added to the coupon rate depending on
the ratchet level. The weighted average coupon rate on private
placement notes issued in 2024 is 5.43% (2023: nil).
Before hedging, the Group’s weighted average interest cost on
bank loans and private placement notes was 6.4% in 2024 (2023:
6.1%).
Following the completion of the refinance of the Group’s debt
package in October 2024, the Group recorded a modification loss of
€7.5 million which was inclusive of €4.8 million of costs relating
to the new facility.
During the year, interest on bank loans and private placement
loan notes of €0.6 million was capitalised to assets under
construction, relating to the construction of Clayton Hotel St.
Andrew Square, Edinburgh due to open in H2 2026.
Interest on lease liabilities for the year increased by €6.7
million to €49.5 million in 2024 primarily due to the impact of the
three new leases of Maldron Hotel Manchester Cathedral Quarter (May
2024), Maldron Hotel Brighton (July 2024), and Maldron Hotel
Liverpool City (July 2024), in addition to the full year impact of
Clayton Hotel Amsterdam American (October 2023).
Tax
charge
The tax charge for the year ended 31 December 2024 of €12.5
million mainly relates to current tax in respect of profits earned
in Ireland during the year. The effective tax rate has decreased
from 14.5% in 2023 to 13.7% in 2024, primarily due to a higher
proportion of expenses being eligible for tax deductions in 2024
compared to 2023.
At 31 December 2024, the Group has deferred tax assets of
€33.1 million, of which €25.0 million relates to cumulative tax
losses and interest expense carried forward which can be utilised
to reduce corporation tax payments in future years.
Earnings
per share (EPS)
The Group’s profit after tax of €78.7 million for 2024 (2023:
€90.2 million) represents basic earnings per share of 35.5 cents
(2023: 40.4 cents). Despite an increase in Adjusted
EBITDA1, the
Group’s profit after tax declined by €11.5 million (12.7%) due
primarily driven by a charge of €7.5 million following the
completion of the refinance of the Group’s debt package as well as
the result of portfolio growth in 2023 and 2024 in increasing
depreciation of property plant and equipment and IFRS 16 lease
accounting charges.
Strong
cashflow generation
The Group generates positive Free Cashflow1 to fund
future acquisitions, development expenditure (€45.8 million) and
shareholder returns.
Free Cashflow1 for 2024
amounted to €123.7 million, a reduction of €9.7 million (-7.2%)
from 2023 primarily due to cash effects within working capital
including the timing of a large customer receipt which impacted the
prior year in addition to lower earnings from the ‘like for
like’4 portfolio.
The new additions to the portfolio contributed an additional €7.5
million to 2024 Free Cashflow1, primarily
driven by the full year impact of the three hotels added in 2023
while the 2024 new openings were cash neutral.
At 31 December 2024, the Group’s Debt and Lease Service
Cover1 remains
strong at 2.7x (31 December 2023: 3.0x) with cash and undrawn loan
facilities of €364.6 million (31 December 2023: €283.5
million).
|
Free
Cashflow1
|
2024
|
2023
|
|
Net cash from operating activities
|
218.3
|
171.4
|
|
Fixed lease payments
|
(61.3)
|
(53.5)
|
|
Other net interest and finance costs paid
|
(14.6)
|
(8.7)
|
|
Refurbishment capital expenditure paid1
|
(25.5)
|
(26.1)
|
|
Exclude impact of net tax payments under Debt Warehousing
scheme
|
-
|
34.9
|
|
Add back pre-opening costs paid
|
1.9
|
0.5
|
|
Add back acquisition costs paid
|
0.5
|
4.4
|
|
Add back refinancing costs paid
|
4.4
|
-
|
|
Exclude impact of 2022 corporation tax payments in
2023
|
-
|
10.5
|
|
Free Cashflow1
|
123.7
|
133.4
|
|
Weighted average shares outstanding - basic
(million)
|
221.6
|
223.3
|
|
Free Cashflow per
Share1
(cent)
|
55.8c
|
59.7c
|
Net cash from operating activities in 2024 increased by €46.9
million primarily as 2023 was impacted by the full repayment of tax
deferrals under the Irish government’s debt warehousing scheme of
€34.9 million in April 2023 and the payment of corporation tax of
€10.5 million relating to 2022 during 2023. Excluding both these
items, net cash from operating activities decreased by €1.5
million.
The Group made fixed lease payments of €61.3 million in 2024,
a €7.8 million increase on 2023 (€53.5 million), driven primarily
by the addition of three new leases in 2024 (Maldron Hotel
Brighton, Maldron Hotel Manchester Cathedral Quarter and Maldron
Hotel Liverpool City) and Clayton Hotel Amsterdam American in
October 2023. Lease payments payable under lease contracts as at 31
December 2024 are expected to be €67.1 million for 2025. The Group
has also committed to noncancellable lease rentals and other
contractual obligations payable under agreements for leases which
have not yet commenced at 31 December 2024. Further detail is
included in note 14 to the consolidated financial
statements.
Finance costs paid amount to €14.6 million, representing an
increase of €5.9 million versus 2023 primarily due to costs paid
relating to the debt refinance of €4.4 million.
On an annual basis, the Group allocates approximately 4% of
revenue to refurbishment capital expenditure projects. The Group’s
investment in refurbishing its portfolio increased in 2024 to €26.6
million compared to 2023, however the timing of payments can be
impacted due to the phasing and completion of projects during the
year. On a paid basis, refurbishment capital expenditure amounted
to €25.5 million in 2024 (2023: €26.1 million).
The Group received net proceeds of €8.3 million from the sale
of Maldron Hotel Wexford in 2024. The sale of the Clayton Whites
Hotel Wexford was completed in January 2025 for €21.0
million.
Dividends paid amounted to €27.1 million in 2024. In
addition, Dalata announced two share buy back programmes, €30
million in September 2024 and €25 million in October 2024. Dalata
executed share buy backs of €48.7 million during 2024 (with the
remaining €6.5 million completed in January 2025) and share
purchases for fulfilling requirements of share incentive schemes of
€5.6 million.
The development expenditure paid of €45.8 million for 2024
primarily related to the construction of Maldron Hotel Shoreditch,
costs paid on entering new leases and agreements for leases and the
deposit of €4.2 million paid for the acquisition of the Radisson
Blu Hotel Dublin Airport (subject to
CCPC2
approval).
At 31 December 2024, the Group has a commitment for future
capital expenditure under its contractual arrangements which
relates primarily to the construction of the new Clayton Hotel St.
Andrew Square, Edinburgh (£34.6 million, €41.7 million) which is
contractually committed and the refurbishment of the ground floor
at Clayton Hotel Cardiff Lane (€6.5 million). Additionally, the
Group has capex requirements to which it is not yet contractually
committed to, estimated to be in excess of €160 million relating to
four previously announced development and acquisition projects
located in the UK and Ireland (over 730 rooms), including €83
million for the acquisition of the Radisson Blu Hotel, Dublin
Airport (subject to CCPC2 approval).
It is expected this will be incurred as the projects are completed
over the next four years.
Balance
sheet | Robust asset-backing provides security, flexibility and a
platform for future growth
|
€million
|
2024
|
2023
|
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
1,711.0
|
1,684.8
|
|
Right-of-use assets
|
760.1
|
685.2
|
|
Intangible assets and goodwill
|
53.6
|
54.1
|
|
Other non-current assets5
|
41.9
|
32.5
|
|
Current assets
|
|
|
|
Trade and other receivables and inventories
|
33.6
|
30.7
|
|
Cash and cash equivalents
|
39.6
|
34.2
|
|
Assets held for sale
|
20.8
|
-
|
|
Other current assets5
|
-
|
6.5
|
|
Total assets
|
2,660.6
|
2,528.0
|
|
Equity
|
1,419.4
|
1,392.9
|
|
Loans and borrowings at amortised cost
|
271.4
|
254.4
|
|
Lease liabilities
|
778.6
|
686.6
|
|
Trade and other payables
|
88.6
|
86.4
|
|
Other liabilities6
|
102.6
|
95.7
|
|
Total equity and
liabilities
|
2,660.6
|
2,528.0
|
The Group maintains a strong balance sheet position at 31
December 2024 with property, plant and equipment of €1.7 billion in
excellent locations, cash and undrawn loan facilities of €364.6
million, and Net Debt to EBITDA after rent1 of 1.3x.
This remains a cornerstone of the Group’s capital allocation policy
as it provides a platform for further growth through strategic
optionality for asset acquisition and by enabling access to lower
cost of debt and lease funding.
The Group’s Normalised Return on Invested
Capital1 was 12.2%
for 2024 decreasing from 13.9% in 2023 primarily due to new
additions to the portfolio which have not reached full operating
performance.
Property,
plant and equipment
Property, plant and equipment amounted to €1,711.0 million at
31 December 2024, including freehold assets of €1,638.3 million
based on independent valuations and assets under construction of
€30.7 million with the remainder primarily relating to fixtures and
fittings at leased hotels. 73% of the Group’s property, plant and
equipment is located in Dublin and London.
The increase of €26.1 million since 31 December 2023
is driven by additions of €53.1
million, unrealised revaluation gains on property assets of €13.1
million, a foreign exchange gain on the retranslation of
sterling-denominated assets of €27.8 million and capitalised
borrowing and labour costs of €0.8 million. This is partially
offset by the depreciation charge of €39.3 million for 2024, €8.3
million for the disposal of Maldron Hotel Wexford, €19.7 million
for reclass of Clayton Whites Hotel, Wexford to assets held for
sale (which was subsequently sold post year end) and an impairment
loss through profit or loss of €1.3 million.
During the year, the Group disposed of Maldron Hotel Wexford
for gross consideration of €8.6 million, resulting in a net gain of
€4.0 million after transaction costs, which was recognised in other
comprehensive income. The cumulative revaluation reserve gain, net
of tax charges, was transferred to retained earnings upon
completion of the disposal.
In November 2024, management exchanged contracts for the sale
of Clayton Whites Hotel, Wexford. At year-end, the property was
revalued based on the agreed transaction values, and the fair value
uplift was recognised in the revaluation reserve. Clayton Whites
Hotel, Wexford was reclassified as a current asset held for sale as
of 31 December 2024, with the sale completed in January 2025 for
€21.0 million.
The Group revalues its property assets, at owned and
effectively owned trading hotels, at each reporting date using
independent external valuers. The principal valuation
technique utilised is discounted cash flows which utilise
asset-specific risk-adjusted discount rates and terminal
capitalisation rates. The independent external valuation also has
regard to relevant recent data on hotel sales activity
metrics.
|
Weighted average terminal
capitalisation rate
|
2024
|
2023
|
|
|
|
|
|
Dublin
|
7.41%
|
7.40%
|
|
Regional Ireland
|
8.56%
|
9.06%
|
|
UK
|
6.31%
|
6.77%
|
|
Group
|
7.17%
|
7.47%
|
|
Additions through acquisitions and
capital expenditure
€million
|
2024
|
2023
|
|
Total acquisitions and development capital
expenditure
|
26.5
|
163.1
|
|
Total refurbishment capital expenditure1
|
26.6
|
23.4
|
|
Additions to property, plant and
equipment
|
53.1
|
186.5
|
The Group incurred €26.5
million in
acquisition and development capital expenditure, of which €14.0
million (£11.6 million) was related to the construction of Maldron
Hotel Shoreditch in London, which opened in 2024.
The Group also incurred costs of €4.3
million related to works at Clayton Hotel Cardiff Lane, €4.3
million on the acquisition of fixture and fittings at the three
leasehold hotels opened in 2024 and €2.8 million related to the
planning and design of the new Clayton Hotel St. Andrew Square,
Edinburgh.
The Group incurred €26.6
million in refurbishment capital
expenditure during the year, primarily related to the refurbishment
of 346 bedrooms, enhancements to
hotel public areas, upgrades to plant and machinery infrastructure,
and improvements to health and safety systems.
Right-of-use
assets and lease liabilities
At 31 December 2024, the Group’s right-of-use assets amounted
to €760.1 million and lease liabilities amounted to €778.6
million.
|
€million
|
Lease
liabilities
|
Right-of-use
assets
|
|
|
|
|
|
At 31 December 2023
|
698.6
|
685.2
|
|
Additions
|
61.4
|
76.0
|
|
Depreciation charge on right-of-use assets
|
-
|
(33.8)
|
|
Interest on lease liabilities
|
49.5
|
-
|
|
Remeasurement of lease liabilities
|
13.8
|
14.7
|
|
Reversal of previous impairment charge
|
-
|
1.7
|
|
Lease payments
|
(61.3)
|
-
|
|
Translation adjustment
|
16.6
|
16.3
|
|
At 31 December 2024
|
778.6
|
760.1
|
Right-of-use assets are recorded at cost less accumulated
depreciation and impairment. The initial cost comprises the initial
amount of the lease liability adjusted for lease prepayments and
accruals at the commencement date, initial direct costs and, where
applicable, reclassifications from intangible assets or accounting
adjustments related to sale and leasebacks.
Lease liabilities are initially measured at the present value
of the outstanding lease payments, discounted using the estimated
incremental borrowing rate attributable to the lease. The lease
liabilities are subsequently remeasured during the lease term
following the completion of rent reviews, a reassessment of the
lease term or where a lease contract is modified.
During the year, a lease amendment, which was not included in
the original lease agreement was made to Clayton Hotel Manchester
Airport. This has been treated as a modification of lease
liabilities and resulted in an increase to the lease liability of
€7.2 million (£6.0 million) and an increase to the carrying value
of the right-of-use asset of €8.1 million (£6.8 million), which
includes initial direct costs of €0.9 million (£0.8 million).
Following agreed rent reviews and rent adjustments, which formed
part of the original lease agreements, certain of the Group’s
leases were reassessed during the year. This resulted in an
increase in lease liabilities and related right-of-use assets of
€6.6 million (2023: €3.3 million).
The weighted average lease life of future minimum rentals
payable under leases is 29.0 years (31 December 2023: 29.5 years),
(excluding impact of Clayton Hotel Manchester Airport which holds a
200 year lease).
Additions during the year ended 31 December 2024 mainly
relate to:
-
In May 2024, the Group entered into
a 35-year lease of Maldron Hotel Manchester Cathedral Quarter. This
resulted in the recognition of a lease liability of €16.3 million
(£13.9 million) and a right-of-use assets of €20.3 million (£17.2
million), which includes initial direct costs of €4.0 million (£3.3
million).
-
In July 2024, the Group entered
into a 35-year lease of Maldron Hotel Liverpool City. This resulted
in the recognition of a lease liability of €21.4 million (£18.1
million) and a right-of-use assets of €27.4 million (£23.2
million), which includes initial direct costs of €6.0 million (£5.1
million).
-
In July 2024, the Group entered
into a 35-year lease of Maldron Hotel Brighton. This resulted in
the recognition of a lease liability of €23.5 million (£19.8
million) and a right-of-use assets of €28.2 million (£23.9
million), which includes initial direct costs of €4.7 million (£4.1
million).
Over 90% of lease contracts at currently leased hotels
include rent review caps which limit CPI/RPI-related payment
increases to between 3% - 4% per annum.
Further information on the Group’s leases including the
unwind of right-of-use assets and release of interest charge is set
out in note 14 to the consolidated financial statements.
Bank
loans and private placement loan notes
As at 31 December 2024, the Group had bank loans and private
placement loan notes, at amortised cost, of €271.4 million which
increased from 31 December 2023 (€254.4 million) due mainly to net
loan drawdowns, loan note issuances and foreign exchange
translation movements on sterling borrowings during the year. The
undrawn committed loan facilities amounted to €325.0 million at 31
December 2024.
|
At 31 December 2024
|
Sterling
£million
|
Euro
€million
|
Total €million
|
|
Term Loan
|
-
|
100.0
|
100.0
|
|
Revolving credit
facility:
|
|
|
|
|
- Drawn in sterling
|
18.5
|
-
|
22.3
|
|
- Drawn in euro
|
-
|
25.0
|
25.0
|
|
Private placement notes:
|
|
|
|
|
- Issued in sterling
|
52.5
|
|
63.3
|
|
- Issued in euro
|
|
62.0
|
62.0
|
|
Bank loans drawn and private
placement loan notes issued at 31 December 2024
|
71.0
|
187.0
|
272.6
|
|
Accounting adjustment to bring to amortised cost
|
|
|
(1.2)
|
|
Bank loans and private placement
loan notes at amortised cost at 31 December 2024
|
|
|
271.4
|
In October 2024, the Group successfully completed a
refinancing of its existing banking facilities securing a €475
million multicurrency loan facility consisting of a €100 million
green term loan and €375 million revolving credit facility for a
five-year term to 9 October 2029, with two options to extend by a
year. The Group also completed its inaugural issuance of €124.7
million of green loan notes to institutional investors for terms of
five and seven years. The new facilities replace the original
multicurrency loan facility consisting of a £176.5 million term
loan facility and a €304.9 million revolving credit facility which
were due to mature in October 2025.
In October 2024, the Group entered into interest rate swaps
to hedge the variable interest rate on its new €100 million euro
term loan for a four-year period to 9 October 2028. As at 31
December 2024, the interest rate swaps cover 100% of the Group’s
term euro denominated borrowings of €100 million for the period to
9 October 2028. The final year of the term debt, to 9 October 2029,
is currently unhedged. The Group’s revolving credit facilities of
€47.3 million as at 31 December 2024 are unhedged. The private
placement notes issued by the Group carry a fixed coupon rate but
are subject to ratchet if Net Debt to EBITDA after
rent1 exceeds
3x.
The Group’s covenants, comprising Net Debt to EBITDA (as
defined in the Group’s external borrowing facility agreement which
is equivalent to Net Debt to EBITDA after rent1) and
Interest Cover1 tested as
at 31 December 2024, showed Net Debt to EBITDA after
rent1 for the
Group is 1.3x and Interest Cover1 is 17.5
times. The Net Debt to EBITDA after rent1 covenant
limit is 4.0 times and the Interest Cover minimum is 4.0
times.
Drawn debt at 31 December 2024 is €147.3 million (2023:
€258.7 million) comprised of a €100 million euro green term loan
and revolving credit facility loans of £18.5 million (€22.3
million) in sterling and €25.0 million in euro denominated
revolving credit facilities. Cash and cash equivalents was €39.6
million (2023: €34.2 million).
Sustainability
strategy
The Group has commenced working on a Net-Zero Transition
Plan. However, while this is in development, Dalata is continuing
to decarbonise with strategic actions to influence the
plan.
Dalata remains focused on reducing both the embodied carbon
and operational carbon emissions when designing new hotels. The new
hotels currently under construction in Dublin and St. Andrew
Square, Edinburgh have been designed to operate with zero on-site
carbon emissions. Maldron Hotel Shoreditch, London
which opened in 2024 is expected to receive a BREEAM ‘Excellent’
rating (Building Research Establishment Environmental Assessment
Methodology).
The Group continues to reduce carbon emissions per room sold,
achieving a reduction of 31% reduction in Scope 1 & 2 carbon
emissions per room sold achieved in 2024 versus 2019 (compared to a
target of 20% reduction on 2019 full year levels by
2026).
All of the Group’s hotels achieved a gold standard from Green
Tourism in 2024. The Group launched a water stewardship programme
and also increased its focus on reducing waste across the hotels.
Dalata’s focus on sustainability is not only beneficial to the
environment but also helps us reduce operational costs.
1
See Supplementary Financial
Information which contains definitions and reconciliations of
Alternative Performance Measures (‘APM’) and other
definitions.
2
CCPC: Competition and Consumer
Protection Commission
3
Adjusting items in 2024 include
impairment charges of €1.4 million, a reversal of previous
impairment charges relating to right of use assets of €1.7m, hotel
pre-opening expenses of €1.9 million (2023: €0.5 million) and
acquisition related costs €1.1 million (2023: €4.4 million) which
impact EBITDA. Additionally, the Group also incurred a modification
loss of €7.5 million and tax impact of adjusting items of €0.5
million. Further detail on adjusting items is provided in the
section titled ‘Adjusting items.’
4 ‘Like
for like’ or ‘LFL’ analysis excludes hotels that were added to the
portfolio or ceased trading under Dalata during 2023 or 2024.
Clayton Whites Hotel, Wexford is also excluded from ‘like for like’
analysis as the hotel was sold in January 2025. The ‘like for like’
UK portfolio excludes the following hotels: Maldron Hotel
Shoreditch, Maldron Hotel Liverpool City, Maldron Hotel Brighton,
Maldon Hotel Cathedral Quarter Manchester, Maldron Hotel Finsbury
Park, and Clayton Hotel London Wall. The ‘like for like’ Regional
Ireland portfolio excludes Maldron Hotel Wexford, disposed of in
November 2024, and Clayton Whites Hotel Wexford, disposed of in January 2025. Clayton Hotel
Amsterdam American is also excluded from the ‘like for like’ stats
for the Group. The ‘like for like’ London portfolio excludes
Maldron Hotel Finsbury Park and Clayton Hotel London
Wall.
5
Other non-current assets comprise
deferred tax assets, investment property and other receivables.
Other current assets comprise current derivative assets.
6
Other liabilities comprise deferred
tax liabilities, provision for liabilities, derivative liabilities,
other payables and current tax liabilities.
7
New hotel
additions: This refers to hotels added to the portfolio during 2023
(Maldron Hotel Finsbury Park, Clayton Hotel London Wall and Clayton
Hotel Amsterdam American) and 2024 (Maldron Hotel Shoreditch,
Maldron Hotel Liverpool City, Maldron Hotel Brighton, Maldon Hotel
Cathedral Quarter Manchester).
Principal
risks and uncertainties
The Group continue to consider its risk environment, emerging
risks, and risk profiles. The principal risks and uncertainties
currently facing the Group are:
External, economic
and geopolitical risks –
Dalata is a customer-facing commercial business, and its
performance is influenced by a broad range of factors outside the
Group’s direct control, including broader economic conditions,
supply chain issues, and geopolitical events that affect consumer
spending and demand. Government policies in areas such as
employment, sales-related taxes and business costs are also closely
considered. These factors can directly or indirectly impact the
Group’s strategy, labour costs and our direct cost base.
However, these conditions may also
provide opportunities for the Group.
The Board and executive management are continually updated on
external factors and their potential impact on our business. The
Group, with its experienced management team, healthy financial
position supported by a strong asset-backed balance sheet and
resilient information systems, is well-equipped to navigate the
influence of external factors on our strategy and
performance.
Health, safety and security
risks - The Group now
operates multiple hotels in Ireland, the UK and Continental Europe.
Given the nature of these operations, health, safety, and security
concerns remain a key priority for the board and executive
management. Our strategy has always focused on prevention and
detection in this risk area.
We have well-resourced health, safety
and security teams, structures and oversight at Group and hotel levels with
supporting health and safety policies and procedures to comply with
relevant legislation, backed by detailed standard operating
procedures (SOPs) and training. There is ongoing capital investment
in hotel life, fire, security and safety systems and servicing,
with prompt remediation of identified health and safety risks. The
Group has a comprehensive crisis management and response plan,
supported by training, awareness and simulation testing. There is a
programme of external fire, health and safety and food safety
audits, complemented by reviews by statutory external bodies, a
comprehensive insurance and risk assessment programme, ongoing
employee and management training and awareness programmes. Our new
hotels are built to high health and safety standards, with health
and safety a principal consideration in all
refurbishments.
Innovation strategy risk
– The Group’s strategy focuses on innovation
across our business, particularly in enhancing guest services,
improving food offerings and increasing business process
efficiencies. In addition, the hospitality market continues to
evolve, with ongoing changes and innovations in its structure and
how it meets guest expectations. Technological advances play an
increasingly significant role in innovation and service delivery,
and our strategy includes assessing these associated
risks.
We recognise the business imperative to innovate in our
business, and innovation is embedded on our culture and a core
objective for senior leadership. Comprehensive case-by-case
assessments are completed, including measurable KPIs, costs and
risks and the use of new or emerging technologies is closely
evaluated. We conduct detailed research on customer wants and needs
within our hotels, including reviewing market trends and obtaining
feedback from customers and teams on initiatives taken. The Group
allocates resources to develop and implement business efficiencies
and innovation.
People risk – Our
strategy is to develop our management and operational expertise
from within our existing teams where possible. This expertise can
be deployed throughout our business, particularly at management
levels in our new hotels. We also aim to recruit and retain
motivated and well-trained people to meet our customers’ service
expectations at our hotels.
The Group continues to invest in extensive development
programmes across all levels of the organisation, in addition to
providing a wide variety of other training programmes to all
employees, helping them to develop their careers as they wish. We
remain focused on the state of labour markets, both locally for
hotels and from an overall perspective. Succession planning, linked
to future business needs, is overseen by senior management. The
development and close monitoring of retention strategies such as
employee benefits, workplace culture, training, employee
development programmes, progression opportunities, and working
conditions continue.
Cyber security, data and privacy
risks – In the current environment, all businesses
face heightened information security risks due to increasingly
sophisticated cyber-attacks, ransomware attacks, and those
targeting company data. The emergence of AI-enhanced malicious
tools has further increased the risk profile.
The ongoing security of our information technology platforms
is crucial. The Group has invested in a modern, standardised
technology platform supported by trusted IT partners. We have
well-managed and resourced internal expertise, supported by
established third-party technology partners. Established
information technology security resources, systems, procedures and
controls are in place. Our Information Security Management System
is based on ISO27001 and audited twice annually.
Expansion and development strategy
risk – The Group’s strategy is to expand
its activities in the UK and European markets through leases,
acquisitions or new hotel developments. We recognise that current
market conditions provide opportunities to the Group, and we
continue to leverage our financial position to capitalise on
opportunities should they arise.
The Group has proven acquisitions and development expertise
within the Central Office team. The board has determined the
Group’s development strategy and criteria, scrutinising all
development projects before commencement and regular updates are
provided on the progress of the development programme. Our funding
flexibility and asset backed balance sheet positions us as a
preferred development partner.
Risks to our culture and
values – We view Dalata’s company culture as a
critical asset, a market differentiator, and a source of
competitive advantage. Our business model is dependent on retaining
and growing our strong culture.
Our defined values are embedded in our behaviour, as set out
in our Code of Conduct. Executive management consistently
communicates these behaviours through face-to-face engagement and
Group communication channels. A comprehensive employee engagement
programme is also in place, where we actively seek feedback from
our people on culture and values. Our extensive people management
training allows all managers to support our “people first” culture
and new team members complete induction training to understand our
behaviours and culture. Our continued investment in development
programmes embeds behaviour and values within our internal talent
pipeline.
Climate change, ESG and
decarbonisation strategy risk - The Board is keenly
aware of the risks to society associated with climate change and
environmental matters. We also recognise that being a socially
responsible business supports our strategic objectives and benefits
society and the communities in which we operate. Climate change and
the drive for a sustainable and responsible business create risks
and opportunities for our business. This area is continually
evolving and has been subject to increased regulation, reporting
and oversight requirements.
A climate change and decarbonisation programme is in place
across our businesses, with published short-term environmental
targets. The Board ESG committee has oversight responsibility for
this key area. A senior executive-led environment steering group
supports hotel initiatives. Material capital projects are reviewed
through a sustainability lens as part of our overall strategy. The
Group is included in the Carbon Disclosure Project (CDP), with
associated reporting and external accreditation by Green Tourism.
Significant resources have been allocated to develop and monitor
initiatives related to our social and responsible business
programme.
Statement of Directors’ Responsibilities
in
respect of the Annual Report and the Financial
Statements
The Directors are responsible for preparing the annual report
and the consolidated and Company financial statements, in
accordance with applicable law and regulations.
Company law requires the Directors to prepare consolidated
and Company financial statements for each financial year. Under
that law, the Directors are required to prepare the consolidated
financial statements in accordance with IFRS as adopted by the
European Union and applicable law Commission Delegated Regulation
2018/815 regarding the single electronic reporting format including
Article 4 of the IAS Regulation. The Directors have elected to
prepare the Company financial statements in accordance with IFRS as
adopted by the European Union as applied in accordance with the
provisions of the Companies Act 2014.
Under company law, the Directors must not approve the
financial statements unless they are satisfied that they give a
true and fair view of the assets, liabilities and financial
position of the Group and Company and of the Group’s profit or loss
for that year. In preparing the consolidated and Company financial
statements, the Directors are required to:
-
select suitable accounting policies
and then apply them consistently;
-
make judgements and estimates that
are reasonable and prudent;
-
state whether applicable accounting
standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-
assess the Group’s and Company’s
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern; and
-
use the going concern basis of
accounting unless they either intend to liquidate the Group or
Company or to cease operations, or have no realistic alternative
but to do so.
The Directors are also required by the Transparency
(Directive 2004/109/EC) Regulations 2007 and the Transparency Rules
of the Central Bank of Ireland to include a management report
containing a fair review of the business and a description of the
principal risks and uncertainties facing the Group.
The Directors are responsible for keeping adequate accounting
records which disclose with reasonable accuracy at any time the
assets, liabilities, financial position and profit or loss of the
Company and which enable them to ensure that the financial
statements of the Company comply with the provisions of the
Companies Act 2014. The Directors are also responsible for taking
all reasonable steps to ensure such records are kept by the
Company’s subsidiaries which enable them to ensure that the
financial statements of the Group comply with the provisions of the
Companies Act 2014 and Article 4 of the IAS Regulation. They are
responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error,
and have general responsibility for safeguarding the assets of the
Company and the Group, and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities. The
Directors are also responsible for preparing a Directors’ Report
that complies with the requirements of the Companies Act
2014.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included on
the Group’s and Company’s website www.dalatahotelgroup.com.
Legislation in the Republic of Ireland concerning the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Responsibility
statement as required by the Transparency Directive and UK
Corporate Governance Code.
Each of the Directors, whose names and functions are listed
in the Board of Directors section of this Annual Report, confirm
that, to the best of each person’s knowledge and belief:
-
The consolidated financial
statements, prepared in accordance with IFRS as adopted by the
European Union, and the Company financial statements, prepared in
accordance with IFRS as adopted by the European Union as applied in
accordance with the provisions of the Companies Act 2014, give a
true and fair view of the assets, liabilities, and financial
position of the Group and Company at 31 December 2024 and of the
profit of the Group for the year then ended;
-
The Directors’ Report contained in
the Annual Report includes a fair review of the development and
performance of the business and the position of the Group and
Company, together with a description of the principal risks and
uncertainties that they face;
-
The Sustainability Statement
contained in the Director’s Report is prepared in accordance with
ESRS and Article 8)4) of Regulation (EU) 2020/852 and our
responsibilities for the Sustainability Statement are discussed in
full in our statement of Directors‘ responsibilities for the
Sustainability Statement; and
-
The Annual Report and financial
statements, taken as a whole, provides the information necessary to
assess the Group’s performance, business model and strategy and is
fair, balanced and understandable and provides the information
necessary for shareholders to assess the Company’s position and
performance, business model and strategy.
On behalf of the Board
|
John
Hennessy
Chair
|
Dermot
Crowley
Director
|
|
5 March 2025
|
|
Consolidated statement of profit or loss and other comprehensive
income
for the
year ended 31 December 2024
|
|
Note
|
2024
€’000
|
2023
€’000
|
|
Continuing
operations
|
|
|
|
|
Revenue
|
2
|
652,190
|
607,698
|
|
Cost of sales
|
|
(238,847)
|
(214,509)
|
|
Gross
profit
|
|
413,343
|
393,189
|
|
|
|
|
|
|
Administrative expenses
|
4
|
(256,332)
|
(238,530)
|
|
Other income
|
5
|
1,447
|
1,484
|
|
Operating
profit
|
|
158,458
|
156,143
|
|
|
|
|
|
|
Net finance costs
|
6
|
(67,220)
|
(50,611)
|
|
Profit before
tax
|
|
91,238
|
105,532
|
|
|
|
|
|
|
Tax charge
|
9
|
(12,497)
|
(15,310)
|
|
Profit for the year
attributable to owners of the Company
|
|
78,741
|
90,222
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
Items that
will not be reclassified to profit or loss
|
|
|
|
|
Revaluation of property
|
13
|
13,083
|
92,098
|
|
Related deferred tax
|
24
|
(3,513)
|
(10,451)
|
|
|
|
9,570
|
81,647
|
|
Items that
are or may be reclassified subsequently to profit or
loss
|
|
|
|
|
Exchange gain on translating foreign operations
|
|
27,095
|
11,396
|
|
Loss on net investment hedge
|
|
(8,590)
|
(6,343)
|
|
Fair value movement on cash flow hedges
|
23
|
923
|
1,753
|
|
Cash flow hedges – reclassified to profit or loss
|
23
|
(7,688)
|
(6,949)
|
|
Related deferred tax
|
24
|
1,660
|
1,299
|
|
|
|
13,400
|
1,156
|
|
|
|
|
|
|
Other comprehensive
income for the year, net of tax
|
|
22,970
|
82,803
|
|
|
|
|
|
|
Total comprehensive
income for the year attributable to owners of the
Company
|
|
101,711
|
173,025
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Basic earnings per share
|
30
|
35.5
cents
|
40.4 cents
|
|
Diluted earnings per share
|
30
|
35.3
cents
|
39.9 cents
|
Notes 1 to 31 are an integral part of these consolidated
financial statements.
Consolidated statement of financial position
at 31
December 2024
|
|
|
2024
€’000
|
2023
€’000
|
|
Assets
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Intangible assets and goodwill
|
12
|
53,649
|
54,074
|
|
Property, plant and equipment
|
13
|
1,710,974
|
1,684,831
|
|
Right-of-use assets
|
14
|
760,151
|
685,193
|
|
Investment property
|
|
1,518
|
2,021
|
|
Deferred tax assets
|
24
|
33,100
|
24,136
|
|
Other receivables
|
15
|
7,362
|
6,418
|
|
Total non-current
assets
|
|
2,566,754
|
2,456,673
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Derivative assets
|
23
|
-
|
6,521
|
|
Trade and other receivables
|
15
|
30,842
|
28,262
|
|
Inventories
|
16
|
2,761
|
2,401
|
|
Cash and cash equivalents
|
17
|
39,575
|
34,173
|
|
Assets held for sale
|
18
|
20,717
|
-
|
|
Total current
assets
|
|
93,895
|
71,357
|
|
Total
assets
|
|
2,660,649
|
2,528,030
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Share capital
|
19
|
2,129
|
2,235
|
|
Share premium
|
19
|
507,365
|
505,079
|
|
Treasury share reserve
|
19
|
(19)
|
-
|
|
Capital reserves
|
19
|
107,104
|
106,988
|
|
Share-based payment reserve
|
19
|
7,955
|
8,417
|
|
Hedging reserve
|
19
|
(214)
|
4,891
|
|
Revaluation reserve
|
19
|
468,605
|
461,181
|
|
Translation reserve
|
19
|
6,323
|
(12,182)
|
|
Retained earnings
|
|
320,157
|
316,328
|
|
Total
equity
|
|
1,419,405
|
1,392,937
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Loans and borrowings
|
22
|
271,384
|
254,387
|
|
Lease liabilities
|
14
|
764,619
|
686,558
|
|
Deferred tax liabilities
|
24
|
92,763
|
84,441
|
|
Derivative liabilities
|
23
|
244
|
-
|
|
Provision for liabilities
|
21
|
5,708
|
6,656
|
|
Other payables
|
20
|
19
|
348
|
|
Total non-current
liabilities
|
|
1,134,737
|
1,032,390
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Lease liabilities
|
14
|
13,939
|
12,040
|
|
Trade and other payables
|
20
|
88,652
|
86,049
|
|
Current tax liabilities
|
|
1,576
|
2,659
|
|
Provision for liabilities
|
21
|
2,340
|
1,955
|
|
Total current
liabilities
|
|
106,507
|
102,703
|
|
Total
liabilities
|
|
1,241,244
|
1,135,093
|
|
Total equity and
liabilities
|
|
2,660,649
|
2,528,030
|
Notes 1 to 31 are an integral part of these consolidated
financial statements.
On behalf of the Board:
|
John
Hennessy
Chair
|
Dermot
Crowley
Director
|
5 March 2025
|
Consolidated statement of changes in equity
for the
year ended 31 December 2024
|
|
Share
capital
|
Share
premium
|
Treasury share
reserve
|
Capital
reserves
|
Share-based
payment reserve
|
Hedging
reserve
|
Revaluation
reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
At 1 January 2024
|
2,235
|
505,079
|
-
|
106,988
|
8,417
|
4,891
|
461,181
|
(12,182)
|
316,328
|
1,392,937
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
78,741
|
78,741
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
Exchange gain on translating foreign operations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
27,095
|
-
|
27,095
|
|
Loss on net investment hedge
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,590)
|
-
|
(8,590)
|
|
Revaluation of properties
(note 13)
|
-
|
-
|
-
|
-
|
-
|
-
|
13,083
|
-
|
-
|
13,083
|
|
Fair value movement on cash flow
hedges (note 23)
|
-
|
-
|
-
|
-
|
-
|
923
|
-
|
-
|
-
|
923
|
|
Cash flow hedges – reclassified to
profit or loss (note 23)
|
-
|
-
|
-
|
-
|
-
|
(7,688)
|
-
|
-
|
-
|
(7,688)
|
|
Release of cumulative revaluation gains on disposal of
hotel
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,146)
|
-
|
2,146
|
-
|
|
Related deferred tax
|
-
|
-
|
-
|
-
|
-
|
1,660
|
(3,513)
|
-
|
-
|
(1,853)
|
|
Total comprehensive
income for the year
|
-
|
-
|
-
|
-
|
-
|
(5,105)
|
7,424
|
18,505
|
80,887
|
101,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with
owners of the Company:
|
|
|
|
|
|
|
|
|
|
|
|
Equity-settled share-based payments
(note 8)
|
-
|
-
|
-
|
-
|
3,615
|
-
|
-
|
-
|
-
|
3,615
|
|
Transfer from share-based payment reserve to retained
earnings
|
-
|
-
|
-
|
-
|
(4,325)
|
-
|
-
|
-
|
4,325
|
-
|
|
Vesting of share awards and options
(note 8)
|
10
|
2,286
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,296
|
|
Dividends paid (note
19)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(27,115)
|
(27,115)
|
|
Repurchase of treasury shares
|
-
|
-
|
(6,279)
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,279)
|
|
Issue of treasury shares
|
-
|
-
|
6,260
|
-
|
-
|
-
|
-
|
-
|
(5,585)
|
675
|
|
Purchase and cancellation of shares
(note 19)
|
(116)
|
-
|
-
|
116
|
-
|
-
|
-
|
-
|
(48,683)
|
(48,683)
|
|
Related deferred tax
|
-
|
-
|
-
|
-
|
248
|
-
|
-
|
-
|
-
|
248
|
|
Total transactions
with owners of the Company
|
(106)
|
2,286
|
(19)
|
116
|
(462)
|
-
|
-
|
-
|
(77,058)
|
(75,243)
|
|
At 31 December
2024
|
2,129
|
507,365
|
(19)
|
107,104
|
7,955
|
(214)
|
468,605
|
6,323
|
320,157
|
1,419,405
|
Notes 1 to 31 are an integral part of these consolidated
financial statements.
Consolidated statement of changes in equity
for the
year ended 31 December 2023
|
|
Share
capital
|
Share
premium
|
Capital
reserves
|
Share-based
payment reserve
|
Hedging
reserve
|
Revaluation
reserve
|
Translation
reserve
|
Retained
earnings
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
At 1 January 2023
|
2,229
|
504,910
|
106,988
|
5,011
|
8,788
|
379,534
|
(17,235)
|
232,541
|
1,222,766
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
90,222
|
90,222
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
Exchange gain on translating foreign operations
|
-
|
-
|
-
|
-
|
-
|
-
|
11,396
|
-
|
11,396
|
|
Loss on net investment hedge
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,343)
|
-
|
(6,343)
|
|
Revaluation of properties
(note 13)
|
-
|
-
|
-
|
-
|
-
|
92,098
|
-
|
-
|
92,098
|
|
Fair value movement on cash flow
hedges (note 23)
|
-
|
-
|
-
|
-
|
1,753
|
-
|
-
|
-
|
1,753
|
|
Cash flow hedges – reclassified to
profit or loss (note 23)
|
-
|
-
|
-
|
-
|
(6,949)
|
-
|
-
|
-
|
(6,949)
|
|
Related deferred tax
|
-
|
-
|
-
|
-
|
1,299
|
(10,451)
|
-
|
-
|
(9,152)
|
|
Total comprehensive
income for the year
|
-
|
-
|
-
|
-
|
(3,897)
|
81,647
|
5,053
|
90,222
|
173,025
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with
owners of the Company:
|
|
|
|
|
|
|
|
|
|
|
Equity-settled share-based payments
(note 8)
|
-
|
-
|
-
|
5,910
|
-
|
-
|
-
|
-
|
5,910
|
|
Transfer from share-based payment reserve to retained
earnings
|
-
|
-
|
-
|
(2,504)
|
-
|
-
|
-
|
2,504
|
-
|
|
Vesting of share awards and options
(note 8)
|
6
|
169
|
-
|
-
|
-
|
-
|
-
|
-
|
175
|
|
Dividends paid (note
19)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,939)
|
(8,939)
|
|
Total transactions
with owners of the Company
|
6
|
169
|
-
|
3,406
|
-
|
-
|
-
|
(6,435)
|
(2,854)
|
|
At 31 December
2023
|
2,235
|
505,079
|
106,988
|
8,417
|
4,891
|
461,181
|
(12,182)
|
316,328
|
1,392,937
|
Notes 1 to 31 are an integral part of these consolidated
financial statements.
Consolidated statement of cash flows
for the
year ended 31 December 2024
|
|
2024
€’000
|
2023
€’000
|
|
Cash flows from
operating activities
|
|
|
|
Profit for the year
|
78,741
|
90,222
|
|
Adjustments for:
|
|
|
|
Depreciation of property, plant and equipment
|
39,316
|
32,791
|
|
Depreciation of right-of-use assets
|
33,727
|
30,663
|
|
Amortisation of intangible assets
|
252
|
650
|
|
Impairment charge relating to investment property
|
96
|
-
|
|
Impairment charge/(reversal) relating to property, plant and
equipment through profit and loss
|
1,322
|
(2,025)
|
|
Impairment reversal relating to right-of-use
assets
|
(1,719)
|
-
|
|
Share-based payments expense
|
3,615
|
5,910
|
|
Interest on lease liabilities
|
49,487
|
42,751
|
|
Other net interest and finance costs
|
17,733
|
7,860
|
|
Tax charge
|
12,497
|
15,310
|
|
|
235,067
|
224,132
|
|
|
|
|
|
Increase/(decrease) in trade and other payables and provision
for liabilities
|
756
|
(33,625)
|
|
(Increase)/decrease in current and non-current
receivables
|
(1,123)
|
4,562
|
|
(Increase)/decrease in inventories
|
(333)
|
110
|
|
Tax paid
|
(16,094)
|
(23,800)
|
|
Net cash from
operating activities
|
218,273
|
171,379
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Purchase of property, plant and equipment
|
(53,621)
|
(120,277)
|
|
Deposits paid on acquisitions
|
(4,153)
|
-
|
|
Contract fulfilment cost payments
|
-
|
(1,965)
|
|
Costs paid on entering new leases and agreements for
leases
|
(13,600)
|
(1,825)
|
|
Proceeds from sale of Maldron Hotel Wexford
|
8,345
|
-
|
|
Acquisitions of undertakings through business combinations,
net of cash acquired
|
-
|
(90,294)
|
|
Purchase of intangible assets
|
-
|
(7)
|
|
Net cash used in
investing activities
|
(63,029)
|
(214,368)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Interest paid on lease liabilities
|
(49,487)
|
(42,751)
|
|
Other net interest and finance costs paid
|
(14,595)
|
(8,726)
|
|
Receipt of bank loans
|
390,204
|
120,648
|
|
Repayment of bank loans
|
(510,818)
|
(64,374)
|
|
Issuance of private placement loan notes
|
124,694
|
-
|
|
Repayment of lease liabilities
|
(11,767)
|
(10,747)
|
|
Proceeds from vesting of share awards and options
|
2,296
|
175
|
|
Purchase of treasury shares
|
(5,604)
|
-
|
|
Purchase of own shares as part of buy back schemes
|
(48,683)
|
-
|
|
Dividends paid
|
(27,115)
|
(8,939)
|
|
Net cash used in
financing activities
|
(150,875)
|
(14,714)
|
|
Net
increase/(decrease) in cash and cash equivalents
|
4,369
|
(57,703)
|
|
Cash and cash
equivalents at the beginning of the year
|
34,173
|
91,320
|
|
Effect of movements in exchange rates
|
1,033
|
556
|
|
Cash and cash
equivalents at the end of the year
|
39,575
|
34,173
|
Notes 1 to 31 are an integral part of these consolidated
financial statements.
Notes to the consolidated financial statements
forming
part of the consolidated financial statements
1
Material accounting policies
General information
and basis of preparation
Dalata Hotel Group plc (the
‘Company’) is a Company domiciled in the Republic of Ireland. The
Company’s registered office is Termini, 3 Arkle Road, Sandyford
Business Park, Dublin 18. The consolidated financial statements of
the Company for the year ended 31 December 2024 include the Company
and its subsidiaries (together referred to as the ‘Group’). The
financial statements were authorised for issue by the Directors on
5 March 2025.
The consolidated financial statements
have been prepared in accordance with IFRS, as adopted by the EU.
In the preparation of these consolidated financial statements the
accounting policies set out below have been applied consistently by
all Group companies.
The preparation of financial
statements in accordance with IFRS as adopted by the EU requires
the Directors to make estimates and assumptions that affect the
reported amounts of assets and liabilities, as well as disclosure
of contingent assets and liabilities, at the date of the financial
statements, and the reported amounts of revenues and expenses
during the reporting year. Such estimates and judgements are based
on historical experience and other factors, including expectation
of future events, that are believed to be reasonable under the
circumstances and are subject to continued re-evaluation. Actual
outcomes could differ from those estimates.
In preparing these consolidated
financial statements, the key judgements and estimates impacting
these consolidated financial statements were as follows:
Significant judgements
Carrying value of property measured
at fair value (note 10,
13,
18).
Key sources of estimation
uncertainty
Carrying value of property measured
at fair value (note 10,
13,
18); and
Carrying value of goodwill and
right-of-use assets including assumptions underpinning value in use
(‘VIU’) calculations in the impairment tests (notes
10,
12,
13,
18).
Measurement
of fair values
A number of the Group’s accounting
policies and disclosures require the measurement of assets and
liabilities at fair value. When measuring the fair value of an
asset or liability, the Group uses observable market data as far as
possible, with non-financial assets being measured on a highest and
best-use basis. Fair values are categorised into different levels
in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
Level
1: quoted prices (unadjusted)
in active markets for identical assets or liabilities.
Level
2: inputs other than quoted
prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
Level
3: inputs for the asset or
liability that are not based on observable market data
(unobservable inputs).
Further information about the
assumptions made in measuring fair values is included in
note 25 – Financial instruments and
risk management (in relation to financial assets and financial
liabilities) and note 13 –
Property, plant and equipment.
(i) Going
concern
The year ended 31 December 2024 saw
the Group deliver strong results and continue the execution of its
growth strategy. The full year impact of hotels added in the
previous year and the addition of new openings in the current year
has led to an increase in Group revenue from hotel operations from
€607.7 million to €652.2 million, as well as net cash generated
from operating activities in the year of €218.3 million (2023:
€171.4 million).
The Group remains in a very strong
financial position with significant financial headroom. The Group
has cash and undrawn loan facilities of €364.6 million (2023:
€283.5 million). The Group is in full compliance with its external
borrowing covenants at 31 December 2024. During the financial year,
the Group refinanced its existing debt facilities, entering new
facilities of circa €600.0 million, comprising a green term loan
facility of €100.0 million, a multi-currency revolving credit
facility of €375.0 million and private placement loan notes of
€124.7 million. The new facilities have maturity profiles of
between five and seven years. Current base projections show
compliance with all covenants at all future testing dates and
significant levels of headroom.
The Directors have considered the
above, with all available information, and the current liquidity
and financial position in assessing the going concern of the Group.
On this basis, the Directors have prepared these consolidated
financial statements on a going concern basis. Furthermore, they do
not believe there is any material uncertainty related to events or
conditions that may cast significant doubt on the Group’s ability
to continue as a going concern for a period of at least 12 months
after the date of these financial statements.
(ii) Statement of
compliance
The consolidated financial statements
have been prepared in accordance with International Financial
Reporting Standards (‘IFRS’) and their interpretations issued by
the International Accounting Standards Board (‘IASB’) as adopted by
the EU and those parts of the Companies Act 2014 applicable to
companies reporting under IFRS and Article 4 of the IAS
Regulation.
The following standards and
interpretations were effective for the Group for the first time
from 1 January 2024:
Amendments to IAS 1
Classification of
Liabilities as Current or Non-Current, and Non-current Liabilities
with Covenants.
Amendments to IFRS 16
Lease Liability in
a Sale and Leaseback.
Amendments to IAS 7
Statement of Cash
Flows and IFRS 7
Financial
Instruments:
Disclosures: Supplier Finance
Arrangements.
The above standards, amendments and
interpretations have no material impact on the consolidated
financial statements of the Group.
Accounting
policies
The accounting policies applied in
these consolidated financial statements are consistent with those
applied in the consolidated financial statements as at and for the
year ended 31 December 2023, apart from the accounting policy for
held for sale assets and liabilities (xvii).
Standards
issued but not yet effective
The following amendments to standards
have been endorsed by the EU, are available for early adoption and
are effective from 1 January 2025. The Group has not adopted these
amendments to standards early, and instead intends to apply them
from their effective date as determined by the date of EU
endorsement. The potential impact of these amendments to standards
on the Group is under review:
Amendments to IAS 21
The Effects of
Changes in Foreign Exchange Rates: Lack of
Exchangeability.
The following standards and
interpretations are not yet endorsed by the EU. The potential
impact of these standards on the Group is under review:
IFRS 19 Subsidiaries without Public
Accountability: Disclosures.
IASB effective date 1 January 2027.
IFRS 18 Presentation and Disclosure in
Financial Statements. IASB
effective date 1 January 2027.
Amendments to classification and
measurement of financial instruments under IFRS 9
Financial
Instruments and IFRS 7
Financial
Instruments: Disclosures. IASB
effective date 1 January 2026.
Amendments to contracts referencing
nature-dependent electricity under IFRS 9 Financial Instruments
and IFRS 7 Financial Instruments:
Disclosures. IASB effective
date 1 January 2026.
Amendments to IFRS 10
Consolidated
Financial Statements and
IAS28 Investments in Associates and
Joint Ventures for sale or contribution of Assets between an
Investor and its Associate or Joint Venture. Effective date deferred indefinitely.
(iii) Functional
and presentation currency
These consolidated financial
statements are presented in Euro, being the functional currency of
the Company and the majority of its subsidiaries. All financial
information presented in Euro has been rounded to the nearest
thousand or million and this is clearly set out in the financial
statements where applicable.
(iv) Basis of
consolidation
The consolidated financial statements
include the financial statements of the Company and all of its
subsidiary undertakings.
Business
combinations
The Group accounts for business
combinations using the acquisition method when control is
transferred to the Group.
The consideration transferred in the
acquisition is generally measured at fair value, as are the
identifiable net assets acquired. Any goodwill that arises is
tested at least annually for impairment. Any gain on a bargain
purchase is recognised in profit or loss immediately. Transaction
costs are expensed as incurred, except if related to the issue of
debt or equity securities.
When an acquisition does not
represent a business, it is accounted for as a purchase of a group
of assets and liabilities, not as a business combination. The cost
of the acquisition is allocated to the assets and liabilities
acquired based on their relative fair values, and no goodwill is
recognised. Where the Group solely purchases the freehold interest
in a property, this is accounted for as an asset purchase and not
as a business combination on the basis that the asset(s) purchased
do not constitute a business. Asset purchases are accounted for as
additions to property, plant and equipment.
Subsidiaries
Subsidiaries are entities controlled
by the Group. The Group controls an entity when it is exposed to,
or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its
power over the entity. The financial statements of subsidiaries are
included in the consolidated financial statements from the date
that control commences until the date that control ceases.
Intra-group balances and transactions, and any unrealised income
and expenses arising from intra-group transactions, are
eliminated.
(v) Revenue
recognition
Revenue represents sales (excluding
VAT) of goods and services net of discounts provided in the normal
course of business and is recognised when services have been
rendered.
Revenue is derived from hotel
operations and includes the rental of rooms, food and beverage
sales, car park revenue and leisure centre membership in leased and
owned hotels operated by the Group. Revenue is recognised when
rooms are occupied and food and beverages are sold. Car park
revenue is recognised when the service is provided. Leisure centre
membership revenue is recognised over the life of the
membership.
Management fees are earned from
hotels managed by the Group. Management fees are normally a
percentage of hotel revenue and/or profit and are recognised when
earned and recoverable under the terms of the management agreement.
Management fee income is included within other income.
Rental income from investment
property is recognised on a straight-line basis over the term of
the lease and is included within other income.
(vi) Sales
discounts and allowances
The Group recognises revenue on a
gross revenue basis and makes various deductions to arrive at net
revenue as reported in profit or loss. These adjustments are
referred to as sales discounts and allowances.
(vii)
Leases
At inception of a lease contract, the
Group assesses whether a contract is, or contains, a lease. If the
contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration, it is
recognised as a lease.
To assess the right to control, the
Group assesses whether:
the contract involves the use of an
identified asset;
the Group has the right to obtain
substantially all of the economic benefits from the use of the
asset; and
the Group has the right to direct the
use of the asset.
A lease liability is initially
measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. The Group uses
its incremental borrowing rate as the discount rate, which is
defined as the estimated rate of interest that the lessee would
have to pay to borrow, over a similar term and with a similar
security, the funds necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic environment. The
incremental borrowing rate is calculated for each individual
lease.
The estimated incremental borrowing
rate for each leased asset is derived from country-specific
risk-free interest rates over the relevant lease term, adjusted for
the finance margin attainable by each lessee and asset-specific
adjustments designed to reflect the underlying asset’s location and
condition.
Lease payments included in the
measurement of the lease liability comprise the
following:
fixed payments (including
in-substance fixed payments) less any lease incentives
receivable;
variable lease costs that depend on
an index or a rate, initially measured using the index or rate as
at the commencement date;
amounts expected to be payable under
a residual value guarantee;
the exercise price under a purchase
option that the Group is reasonably certain to exercise;
and
penalties for early termination of a
lease unless the Group is reasonably certain not to terminate
early.
Variable lease costs linked to future
performance or use of an underlying asset are excluded from the
measurement of the lease liability and the right-of-use asset. The
related payments are recognised as an expense in the period in
which the event or condition that triggers those payments occurs
and are included in administrative expenses in profit or
loss.
The lease liability is subsequently
measured by increasing the carrying amount to reflect interest on
the lease liability (using the effective interest method) and by
reducing the carrying amount to reflect lease payments.
The Group remeasures the lease
liability where lease payments change due to changes in an index or
rate, changes in expected lease term or where a lease contract is
modified. When the lease liability is remeasured, a corresponding
adjustment is made to the carrying amount of the right-of-use asset
or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and an
estimate of any costs to dismantle and remove the underlying asset
or to restore the underlying asset or the site on which it is
located, less any lease incentives received.
The right-of-use asset is
subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of
the right-of-use asset, or a component thereof, or the end of the
lease term. Right-of-use assets are reviewed on an annual basis or
whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. The Group applies IAS
36 Impairment of Assets
to determine whether a
cash-generating unit with a right-of-use asset is impaired and
accounts for any identified impairments through profit or loss. The
right-of-use asset is periodically reduced by impairment losses, if
any, and adjusted for certain remeasurements of the lease
liability. The Group also applies IAS 36 Impairment of Assets
to any cash-generating units, which
have right-of-use assets which were previously impaired, to assess
whether previous impairments should be reversed. A reversal of a
previous impairment charge is accounted for through profit or loss
and only increases the carrying amount of the right-of-use asset to
a maximum of what it would have been if the original impairment
charges had not been recognised in the first place.
The Group has elected not to
recognise right-of-use assets and lease liabilities for short-term
leases of fixtures, fittings and equipment that have a lease term
of 12 months or less and leases of low-value assets. Assets are
considered low value if the value of the asset when new is less
than €5,000. The Group recognises the lease payments associated
with these leases as an expense on a straight-line basis over the
lease term.
(viii) Share-based
payments
The grant date fair value of
equity-settled share-based payment awards and options granted to
employees is recognised as an expense, with a corresponding
increase in equity, over the vesting period of the awards and
options.
This incorporates the effect of
market-based conditions, where applicable, and the estimated fair
value of equity-settled share-based payment awards issued with
non-market performance conditions.
The amount recognised as an expense
is adjusted to reflect the number of awards and options for which
the related service and any non-market performance conditions are
expected to be met, such that the amount ultimately recognised is
based on the number of awards that met the related service and
non-market performance conditions at the vesting date. The amount
recognised as an expense is not adjusted for market conditions not
being met.
On vesting of the equity-settled
share-based payment awards and options, the cumulative expense
recognised in the share-based payment reserve is transferred
directly to retained earnings. An increase in ordinary share
capital and share premium, in the case where the price paid per
share is higher than the cost per share, is recognised reflecting
the issuance of shares as a result of the vesting of the awards and
options.
The dilutive effect of outstanding
awards is reflected as additional share dilution in calculating
diluted earnings per share.
(ix) Tax
Tax charge or credit comprises
current and deferred tax. Tax charge or credit is recognised in
profit or loss except to the extent that it relates to a business
combination or items recognised directly in other comprehensive
income or equity.
Current tax is the expected tax
payable or receivable on the taxable income or loss for the year
using tax rates enacted or substantively enacted at the reporting
date and any adjustment to tax payable in respect of previous
years.
Deferred tax is recognised in respect
of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and amounts used for
taxation purposes except for the initial recognition of goodwill
and other assets and liabilities that do not affect accounting
profit or taxable profit at the date of recognition and at the time
of the transaction, do not give rise to taxable and deductible
temporary differences.
Deferred tax is measured at the tax
rates that are expected to be applied to the temporary differences
when they reverse, based on the laws that have been enacted or
substantively enacted by the reporting date.
Deferred tax assets and liabilities
are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to income taxes
levied by the same tax authority on the same taxable entity, or on
different entities, but they intend to settle current tax
liabilities and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Deferred tax liabilities are
recognised where the carrying value of land and buildings for
financial reporting purposes is greater than their tax cost
base.
Deferred tax assets are recognised
for unused tax losses, unused tax credits and deductible temporary
differences to the extent that it is probable future taxable
profits will be available against which the temporary difference
can be utilised.
Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised. Such
reductions are reversed when the probability of future taxable
profits improves.
(x) Earnings per
share (‘EPS’)
Basic earnings per share is
calculated based on the profit or loss for the year attributable to
owners of the Company and the basic weighted average number of
shares outstanding. Diluted earnings per share is calculated based
on the profit or loss for the year attributable to owners of the
Company and the diluted weighted average number of shares and
potential shares outstanding.
Shares are only treated as dilutive
if their dilution results in a decreased earnings per share or
increased loss per share.
Dilutive effects arise from
share-based payments that are settled in shares. Conditional share
awards to employees have a dilutive effect when the average share
price during the period exceeds the exercise price of the awards
and the market or non-market conditions of the awards are met, as
if the current period end were the end of the vesting period. When
calculating the dilutive effect, the exercise price is adjusted by
the value of future services that have yet to be received related
to the awards.
(xi) Property,
plant and equipment
Land and buildings are initially
stated at cost, including directly attributable transaction costs,
(or fair value when acquired through business combinations) and
subsequently at fair value.
Assets under construction include
sites where new hotels are currently being developed and
significant development projects at hotels which are currently
operational. These sites and the capital investment made are
recorded at cost. Borrowing costs incurred in the construction of
major assets or development projects which take a substantial
period of time to complete are capitalised in the financial period
in which they are incurred. Capitalisation of interest is suspended
when an active development is delayed over an extended period and
where costs are not deemed recoverable. Once construction is
complete and the hotel is operating, the assets will be transferred
to land and buildings and fixtures, fittings and equipment at cost.
The land and buildings element will subsequently be measured at
fair value. Depreciation will commence when the assets are
available for use.
Fixtures, fittings and equipment are
stated at cost, less accumulated depreciation and any impairment
provision.
Cost includes expenditure that is
directly attributable to the acquisition of property, plant and
equipment unless it is acquired as part of a business combination
under IFRS 3 Business
Combinations, where the deemed
cost is its acquisition date fair value. In the application of the
Group’s accounting policy, judgement is exercised by management in
the determination of fair value of land and buildings at each
reporting date, residual values and useful lives.
Depreciation is charged through
profit or loss on the cost or valuation less residual value on a
straight-line basis over the estimated useful lives of the assets
which are as follows:
|
Buildings
|
50 years
|
|
Fixtures, fittings and
equipment
|
3 – 15 years
|
|
Land is not depreciated.
|
|
Residual values and useful lives are
reviewed and adjusted if appropriate at each reporting
date.
Land and buildings are revalued by
qualified valuers on a sufficiently regular basis using open market
value (which reflects a highest and best-use basis) so that the
carrying value of an asset does not materially differ from its fair
value at the reporting date. External revaluations of the Group’s
land and buildings have been carried out in accordance with the
Royal Institution of Chartered Surveyors (RICS) Valuation Standards
and IFRS 13 Fair Value
Measurement.
Surpluses on revaluation are
recognised in other comprehensive income and accumulated in equity
in the revaluation reserve, except to the extent that they reverse
impairment losses previously charged to profit or loss, in which
case the reversal is recorded in profit or loss. Decreases in value are charged against other
comprehensive income and the revaluation reserve to the extent that
a previous gain has been recorded there and thereafter are charged
through profit or loss. Prior to the disposal of any land and
building, or reclassification as held for sale, a property asset is
revalued. Any carried forward revaluation surplus is transferred to
retained earnings in other comprehensive income on the completion
of the disposal of the property asset.
Fixtures, fittings and equipment are
reviewed for impairment when events or changes in circumstances
indicate that the carrying value may not be recoverable. Assets
that do not generate independent cash flows are combined into
cash-generating units. If carrying values exceed estimated
recoverable amounts, the assets or cash-generating units are
written down to their recoverable amount. Recoverable amount is the
greater of fair value less costs to sell and VIU. VIU is assessed
based on estimated future cash flows discounted to their present
value using a pre-tax discount rate that reflects current market
assessments of the time value of money and risks specific to the
asset.
The Group also applies IAS 36
Impairment of
Assets to any cash-generating
units, with fixtures, fittings and equipment which were previously
impaired and which are not revalued, to assess whether previous
impairments should be reversed. A reversal of a previous impairment
charge is accounted for through profit or loss and only increases
the carrying amount of the fixtures, fittings and equipment to a
maximum of what it would have been if the original impairment
charges had not been recognised in the first place.
(xii) Investment
property
Investment property is held either to
earn rental income, or for capital appreciation, or for both, but
not for sale in the ordinary course of business.
Investment property is initially
measured at cost, including transaction costs, (or fair value when
acquired through business combinations) and subsequently revalued
by professional external valuers at their respective fair values.
The difference between the fair value of an investment property at
the reporting date and its carrying value prior to the external
valuation is recognised in profit or loss.
The Group’s investment properties are
valued by qualified valuers on an open market value basis in
accordance with the Royal Institution of Chartered Surveyors (RICS)
Valuation Standards and IFRS 13 Fair Value
Measurement.
(xiii)
Goodwill
Goodwill represents the excess of the
fair value of the consideration for an acquisition over the Group’s
interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities of the acquiree. Goodwill is
the future economic benefits arising from other assets in a
business combination that are not individually identified and
separately recognised.
Goodwill is measured at its initial
carrying amount less accumulated impairment losses. The carrying
amount of goodwill is tested annually for impairment, or more
frequently if events or changes in circumstances indicate that it
might be impaired. For the purposes of impairment testing, assets
are grouped together into the smallest group of assets that
generate cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets
(the ‘cash-generating unit’).
The goodwill acquired in a business
combination, for the purpose of impairment testing, is allocated to
cash-generating units that are expected to benefit from the
synergies of the combination.
The recoverable amount of a
cash-generating unit is the greater of its VIU and its fair value
less costs to sell. In assessing VIU, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects a current market assessment of the time
value of money and the risks specific to the asset.
An impairment loss is recognised in
profit or loss if the carrying amount of a cash-generating unit
exceeds its estimated recoverable amount. Impairment losses
recognised in respect of cash-generating units are allocated first
to reduce the carrying amount of any goodwill allocated to the
units and then to reduce the carrying amount of the other assets in
the units on a pro-rata basis. Impairment losses of goodwill are
not reversed once recognised.
The impairment testing process
requires management to make significant judgements and estimates
regarding the future cash flows expected to be generated by the
cash-generating unit. Management evaluates and updates the
judgements and estimates which underpin this process on an ongoing
basis.
The impairment methodology and key
assumptions used by the Group for testing goodwill for impairment
are outlined in notes 10 and 12.
The assumptions and conditions for
determining impairment of goodwill reflect management’s best
estimates and judgements, but these items involve significant
inherent uncertainties, many of which are not under the control of
management. As a result, accounting for such items could result in
different estimates or amounts if management used different
assumptions or if different conditions occur in the
future.
(xiv) Intangible
assets other than goodwill
An intangible asset is only
recognised where the item lacks a physical presence, is
identifiable, non-monetary, controlled by the Group and expected to
provide future economic benefits to the Group.
Intangible assets are measured at
cost (or fair value when acquired through business combinations),
less accumulated amortisation and impairment losses.
Intangible assets are amortised over
the period of their expected useful lives by charging equal annual
instalments to profit or loss. The useful life used to amortise
intangible assets relates to the future performance of the asset
and management’s judgement as to the period over which economic
benefits will be derived from the asset.
(xv)
Inventories
Inventories are stated at the lower
of cost (using the first-in, first-out (FIFO) basis) and net
realisable value. Inventories represent assets that are sold in the
normal course of business by the Group and consumables.
(xvi) Cash and cash
equivalents
Cash and cash equivalents comprise
cash balances and call deposits with original maturities of three
months or less, which are carried at amortised cost.
(xvii) Held for
sale assets and liabilities
Assets and related liabilities are
classified as held for sale if their carrying value will be
recovered through a sale transaction rather than through continuing
use. This condition is regarded as met if, the sale is highly
probable, the assets and related liabilities are available for
immediate sale in their present condition, management is committed
to the sale and the sale is expected to be completed within one
year from the date of classification.
On initial classification as held for
sale, non-current assets are measured at the lower of; their
carrying amount and fair value less costs to sell. Any land and
buildings revaluation gain/loss immediately prior to
reclassification as held for sale is measured in accordance with
the land and buildings revaluation policy.
(xviii) Trade and
other receivables
Trade and other receivables are
stated initially at their fair value and subsequently at amortised
cost, less any expected credit loss provision. The Group applies
the simplified approach to measuring expected credit losses which
uses a lifetime expected loss allowance for all trade receivables.
Bad debts are written off to profit or loss on
identification.
(xix) Trade and
other payables
Trade and other payables are
initially recorded at fair value, which is usually the original
invoiced amount. Fair value for the initial recognition of payroll
tax liabilities is the amount payable stated on the payroll
submission filed with the tax authorities. Fair value for the
initial recognition of VAT liabilities is the net amount of VAT
payable to, and recoverable from, the tax authorities. Trade and
other payables are subsequently carried at amortised cost using the
effective interest method. Liabilities are derecognised when the
obligation under the liability is discharged, cancelled or
expired.
(xx) Foreign
currency
Transactions in currencies other than
the functional currency of a Group entity are recorded at the rate
of exchange prevailing on the date of the transactions. Monetary
assets and liabilities denominated in foreign currencies at the
reporting date are retranslated into the respective functional
currency at the relevant rates of exchange ruling at the reporting
date. Foreign exchange differences arising on translation are
recognised in profit or loss.
The assets and liabilities of foreign
operations are translated into Euro at the exchange rate ruling at
the reporting date. The income and expenses of foreign operations
are translated into Euro at rates approximating the exchange rates
at the dates of the transactions.
Foreign exchange differences arising
on the translation of foreign operations are recognised in other
comprehensive income and are included in the translation reserve
within equity.
(xxi) Provisions
and contingent liabilities
A provision is recognised in the
statement of financial position when the Group has a present legal
or constructive obligation as a result of a past event, and it is
probable that an outflow of economic benefits will be required to
settle the obligation. If the effect is material, provisions are
determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time
value of money and, where appropriate, the risks specific to the
liability.
The provision in respect of
self-insured risks includes projected settlements for known claims
and incurred but not reported claims.
Where it is not probable that an
outflow of economic benefits will be required, or the amount cannot
be estimated reliably, the obligation is disclosed as a contingent
liability, unless the probability of an outflow of economic
benefits is remote. Possible obligations, whose existence will only
be confirmed by the occurrence or non-occurrence of one or more
future events, are also disclosed as contingent liabilities unless
the probability of an outflow of economic benefits
is remote.
(xxii) Ordinary
shares
Ordinary shares are classified as
equity. Incremental costs directly attributable to the issuance of
ordinary shares are recognised as a deduction from equity, net of
any tax effects. Merger relief is availed of by the Group where
possible. Repurchased shares are classified as treasury shares and
are presented in the treasury share reserve. Repurchase of the
Company’s own equity instruments is recognised and deducted from
equity with a transfer between the treasury share reserve and
retained earnings when they are cancelled. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or
cancellation of the Company’s own equity instruments. When treasury
shares are sold or reissued subsequently, the amount received is
recognised as an increase in equity and the resulting surplus or
deficit on the transaction is presented within share
premium.
(xxiii) Loans and
borrowings
Bank loans and private placement
notes are recognised initially at the fair value of the
consideration received, less directly attributable transaction
costs. Subsequent to initial recognition, bank loans and private
placement notes are stated at amortised cost with any difference
between cost and redemption value being recognised in profit or
loss over the period of the bank loans and private placement loan
notes on an effective interest rate basis. Commitment fees incurred
in connection with bank loans are expensed as incurred to profit or
loss.
(xxiv) Net finance
costs
Finance costs comprise interest
expense on bank loans, private placement notes and related
financial instruments, commitment fees and other costs relating to
financing of the Group.
Interest expense on bank loans and
private placement notes are recognised using the effective interest
method. The effective interest rate of a financial liability is
calculated on initial recognition of a financial liability. In
calculating interest expense, the effective interest rate is
applied to the amortised cost of the liability.
If a financial liability is deemed to
be non-substantially modified (less than 10 percent different) (see
policy (xxv)), the amortised cost of the liability is recalculated
by discounting the modified cash flows at the original effective
interest rate and the resulting modification gain or loss is
recognised in finance costs in profit or loss. For
floating-rate financial liabilities, the original effective
interest rate is adjusted to reflect the current market terms at
the time of the modification.
If a financial liability is deemed to
be substantially modified (more than 10 percent different) (see
policy (xxv)), the difference between the carrying amount of the
financial liability derecognised and consideration paid is
recognised as a modification gain/loss in finance costs in profit
or loss. Any costs in relation to the new financial liability are
recognised as part of this modification gain/loss in finance costs
in profit or loss.
Finance costs incurred for qualifying
assets, which take a substantial period of time to construct, are
added to the cost of the asset during the period of time required
to complete and prepare the asset for its intended use or sale. The
Group uses two capitalisation rates being the Euro and Sterling
weighted average interest rates of borrowings and loan notes,
including the impact of hedging if any, which are applied to
qualifying assets based on the currency of their geographic
jurisdiction. Capitalisation commences on the date on which the
Group undertakes activities that are necessary to prepare the asset
for its intended use. Capitalisation of borrowing costs ceases when
the asset is ready for its intended use and is suspended when an
active development is delayed over an extended period.
Finance costs also include interest
on lease liabilities.
(xxv) Derecognition
of financial liabilities
The Group removes a financial
liability from its statement of financial position when it is
extinguished (when its contractual obligations are discharged,
cancelled, or expire).
The Group also derecognises a
financial liability when the terms and the cash flows of a modified
liability are substantially different. The terms are substantially
different if the discounted present value of the cash flows under
the new terms, discounted using the original effective interest
rate, including any fees paid to lenders net of any fees received,
is at least 10 percent different from the discounted present value
of the remaining cash flows of the original financial liability,
discounted at the original effective interest rate, (the ‘10%
test’). In addition, a qualitative assessment is carried out of the
new terms in the new facility agreement to determine whether there
is a substantial modification.
If the financial liability is deemed
substantially modified, a new financial liability based on the
modified terms is recognised at fair value. The difference between
the carrying amount of the financial liability derecognised and
consideration paid is recognised in profit or loss. Any costs in
relation to the new financial liability are recognised in profit or
loss.
If the financial liability is deemed
non-substantially modified, the amortised cost of the liability is
recalculated by discounting the modified cash flows at the original
effective interest rate and the resulting modification gain or loss
is recognised in profit or loss. Any costs and fees directly
attributable to the modified financial liability are recognised as
an adjustment to the carrying amount of the modified financial
liability and amortised over its remaining term by re-computing the
effective interest rate on the instrument.
(xxvi) Derivative
financial instruments
The Group’s borrowings expose it to
the financial risks of changes in interest rates. The Group uses
derivative financial instruments such as interest rate swap
agreements to hedge these exposures. Interest rate swaps convert
part of the Group’s borrowings from floating to fixed interest
rates. The Group does not use derivatives for trading or
speculative purposes.
Derivative financial instruments are
recognised at fair value on the effective date of the derivative
contract plus directly attributable transaction costs and are
subsequently re-measured at fair value. Derivatives are carried as
assets when the fair value is positive and as liabilities when the
fair value is negative.
The full fair value of a hedging
derivative is classified as a non-current asset or non-current
liability if the remaining maturity of the hedging instrument is
more than twelve months and as a current asset or current liability
if the remaining maturity of the hedging instrument is less than
twelve months.
The fair value of derivative
instruments is determined by using valuation techniques. The Group
uses its judgement to select the most appropriate valuation methods
and makes assumptions that are mainly based on observable market
conditions (Level 2 fair values) existing at the reporting
date.
The method of recognising the
resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the
item being hedged.
(xxvii) Cash flow
hedge accounting
Cash flow hedge accounting is applied
in accordance with IFRS 9 Financial
Instruments. For those
derivatives designated as cash flow hedges and for which hedge
accounting is desired, the hedging relationship is documented at
its inception. This documentation identifies the hedging
instrument, the hedged item or transaction, the nature of the risk
being hedged and its risk management objectives and strategy for
undertaking the hedging transaction. The Group also documents its
assessment, both at hedge inception and on a semi-annual basis, of
whether the derivatives that are used in hedging transactions are
highly effective in offsetting changes in cash flows of hedged
items.
Where a derivative financial
instrument is designated as a hedge of the variability in cash
flows of a recognised asset or liability, the effective part of any
gain or loss on the derivative financial instrument is recognised
in other comprehensive income and accumulated in equity in the
hedging reserve. Any ineffective portion is recognised immediately
in profit or loss as finance income or costs. The amount
accumulated in equity is retained in other comprehensive income and
reclassified to profit or loss in the same period or periods during
which the hedged item affects profit or loss.
Hedge accounting is discontinued when
the hedging instrument expires or is sold, terminated, exercised,
or no longer qualifies for hedge accounting or the designation is
revoked. At that point in time, any cumulative gain or loss on the
hedging instrument recognised in equity remains in equity and is
recognised when the forecast transaction is ultimately recognised
in profit or loss. However, if a hedged transaction is no longer
anticipated to occur, the net cumulative gain or loss accumulated
in equity is reclassified to profit or loss.
(xxviii) Net
investment hedges
Where relevant, the Group uses a net
investment hedge, whereby the foreign currency exposure arising
from a net investment in a foreign operation is hedged using
borrowings held by a Group entity and loan notes issued by the
Group that is denominated in the functional currency of the foreign
operation.
Foreign currency differences arising
on the retranslation of a financial liability designated as a hedge
of a net investment in a foreign operation are recognised directly
in other comprehensive income in the foreign currency translation
reserve, to the extent that the hedge is effective. To the extent
that the hedge is ineffective, such differences are recognised in
profit or loss. When the hedged part of a net investment is
disposed of, the associated cumulative amount in equity is
reclassified to profit or loss.
(xxix) Adjusting
items
Consistent with how business
performance is measured and managed internally, the Group reports
both statutory measures prepared under IFRS and certain alternative
performance measures (‘APMs’) that are not required under IFRS.
These APMs are sometimes referred to as ‘non-GAAP’ measures and
include, amongst others, Adjusted EBITDA, Free Cashflow per Share,
and Adjusted EPS.
The Group believes that the
presentation of these APMs provides useful supplemental information
which, when viewed in conjunction with the financial information
presented under IFRS, provides stakeholders with a meaningful
understanding of the underlying financial and operating performance
of the Group.
Adjusted measures of profitability
represent the equivalent IFRS measures adjusted to show the
underlying operating performance of the Group and exclude items
which are not reflective of normal trading activities or distort
comparability either year on year or with other similar
businesses.
2
Operating segments
The Group’s segments are reported in
accordance with IFRS 8 Operating
Segments. The segment
information is reported in the same way as it is reviewed and
analysed internally by the chief operating decision makers,
primarily, the Executive Directors.
The Group segments its leased and
owned business by geographical region within which the hotels
operate being Dublin, Regional Ireland, the UK and Continental
Europe. These comprise the Group’s four reportable
segments.
Dublin, Regional
Ireland, the UK and Continental Europe segments
These segments are concerned with
hotels that are either owned or leased by the Group. As at 31
December 2024, the owned portfolio consists of 31 hotels which it
operates (31 December 2023: 31 hotels) and includes hotels for
which the Group has majority or effective ownership. The Group also
leases 22 hotel buildings from property owners (31 December 2023:
19 hotels) and is entitled to the benefits and carries the risks
associated with operating these hotels.
The Group’s revenue from leased and
owned hotels is primarily derived from room sales and food and
beverage sales in restaurants, bars and banqueting. The main costs
arising are payroll, cost of goods for resale, commissions paid on
room sales, utilities, other operating costs, and, in the case of
leased hotels, variable lease costs (where linked to turnover or
profit) payable to lessors.
|
|
2024
€’000
|
2023
€’000
|
|
Revenue
|
|
|
|
Dublin
|
283,793
|
286,130
|
|
Regional Ireland
|
110,474
|
112,317
|
|
UK
|
220,813
|
186,292
|
|
Continental Europe
|
37,110
|
22,959
|
|
Total
revenue
|
652,190
|
607,698
|
Segmental revenue for each of the
geographical locations represents the operating revenue (room
revenue, food and beverage revenue and other hotel revenue) from
leased and owned hotels situated in the Group’s four reportable
segments.
In November 2024, the Group disposed
of Maldron Hotel, Wexford (note 13) and contracts were also exchanged for the sale
of Clayton Whites Hotel, Wexford. This property was classified as
held for sale at 31 December 2024 (note 18). Both hotels form part of the Regional Ireland
segment.
The year ended 31 December 2024 saw
the Group trade strongly and continue the execution of its growth
strategy. The strong trade, the full year impact of hotels added
during 2023 and the addition of four hotels during 2024 has led to
an increase in Group revenue from hotel operations from €607.7
million to €652.2 million.
|
|
2024
€’000
|
2023
€’000
|
|
Segmental results –
EBITDAR (APM (iv))
|
|
|
|
Dublin
|
132,308
|
135,883
|
|
Regional Ireland
|
34,990
|
37,018
|
|
UK
|
80,965
|
71,658
|
|
Continental Europe
|
11,274
|
7,707
|
|
EBITDAR for
reportable segments
|
259,537
|
252,266
|
|
|
|
|
|
Segmental results –
EBITDA
|
|
|
|
Dublin
|
130,233
|
133,750
|
|
Regional Ireland
|
34,856
|
36,889
|
|
UK
|
80,627
|
71,082
|
|
Continental Europe
|
11,177
|
6,915
|
|
EBITDA for
reportable segments
|
256,893
|
248,636
|
|
|
|
|
|
Reconciliation to
results for the year
|
|
|
|
Segmental results – EBITDA
|
256,893
|
248,636
|
|
Other income
|
1,447
|
1,484
|
|
Central costs
|
(20,272)
|
(21,102)
|
|
Share-based payments
expense
|
(3,615)
|
(5,910)
|
|
Adjusted
EBITDA
|
234,453
|
223,108
|
|
|
|
|
|
Adjusting
items
|
|
|
|
Impairment charge relating to
investment property
|
(96)
|
-
|
|
Impairment (charge)/reversal relating
to property, plant and equipment through profit and loss
|
(1,322)
|
2,025
|
|
Impairment reversal relating to
right-of-use assets
|
1,719
|
-
|
|
Hotel pre-opening expenses
|
(1,895)
|
(497)
|
|
Acquisition-related costs
|
(1,106)
|
(4,389)
|
|
Group
EBITDA
|
231,753
|
220,247
|
|
|
|
|
|
Depreciation of property, plant and
equipment
|
(39,316)
|
(32,791)
|
|
Depreciation of right-of-use
assets
|
(33,727)
|
(30,663)
|
|
Amortisation of intangible
assets
|
(252)
|
(650)
|
|
Interest on lease
liabilities
|
(49,487)
|
(42,751)
|
|
Other net interest and finance
costs
|
(17,733)
|
(7,860)
|
|
Profit before
tax
|
91,238
|
105,532
|
|
Tax charge
|
(12,497)
|
(15,310)
|
|
Profit for the year
attributable to owners of the Company
|
78,741
|
90,222
|
Group EBITDA represents earnings
before interest on lease liabilities, other interest and finance
costs, tax, depreciation of property, plant and equipment and
right-of-use assets and amortisation of intangible
assets.
Adjusted EBITDA is presented as an
alternative performance measure to show the underlying operating
performance of the Group excluding items which are not reflective
of normal trading activities or distort comparability either year
on year or with other similar businesses. Consequently, Adjusted
EBITDA represents Group EBITDA before:
Impairment reversal relating to
right-of-use assets (note 14);
Impairment charge/(reversal) relating
to property, plant and equipment through profit and loss
(note 13);
Impairment charge relating to
investment property;
Hotel pre-opening expenses, which
relate primarily to payroll expenses, sales and marketing costs and
training costs of new staff, that are incurred by the Group in
advance of new hotel openings (note 4); and
Acquisition-related costs
(note 4).
The line item ‘central costs’
includes costs of the Group’s central functions including
operations support, technology, sales and marketing, human
resources, finance, corporate services and business development.
Also included in central costs is the present value discounting of
insurance provisions of €0.1 million (2023: unwinding of the
discount on insurance provisions of €0.3 million) and the net
reversal of prior period insurance provisions of €1.0 million
(2023: €0.9 million) (note 21). Share-based payments expense is presented
separately from central costs as this expense relates to employees
across the Group (note 7).
‘Segmental results – EBITDA’ for
Dublin, Regional Ireland, the UK and Continental Europe represents
the ‘Adjusted EBITDA’ for each geographical location before central
costs, share-based payments expense and other income. It is the net
operational contribution of leased and owned hotels in each
geographical location.
‘Segmental results – EBITDAR’ for
Dublin, Regional Ireland, the UK and Continental Europe represents
‘Segmental results – EBITDA’ before variable lease costs
(note 30).
Disaggregated
revenue information
Disaggregated segmental revenue is
reported in the same way as it is reviewed and analysed internally
by the chief operating decision makers, primarily, the Executive
Directors. The key components of revenue reviewed by the chief
operating decision makers are:
Room revenue which relates to the
rental of rooms in each hotel. Revenue is recognised when the hotel
room is occupied, and the service is provided;
Food and beverage revenue which
relates to sales of food and beverages at the hotel property.
Revenue is recognised at the point of sale; and
Other revenue includes revenue from
leisure centres, car parks, meeting room hire and other revenue
sources at the hotels. Leisure centre revenue is recognised over
the life of the membership while the other items are recognised
when the service is provided.
|
Revenue review by
segment – Dublin
|
2024
€’000
|
2023
€’000
|
|
Room revenue
|
214,644
|
216,948
|
|
Food and beverage revenue
|
51,938
|
51,263
|
|
Other revenue
|
17,211
|
17,919
|
|
Total
revenue
|
283,793
|
286,130
|
|
Revenue review by
segment – Regional Ireland
|
2024
€’000
|
2023
€’000
|
|
Room revenue
|
72,610
|
73,218
|
|
Food and beverage revenue
|
29,022
|
30,336
|
|
Other revenue
|
8,842
|
8,763
|
|
Total
revenue
|
110,474
|
112,317
|
|
Revenue review by
segment – UK
|
2024
€’000
|
2023
€’000
|
|
Room revenue
|
176,996
|
146,584
|
|
Food and beverage revenue
|
34,394
|
30,491
|
|
Other revenue
|
9,423
|
9,217
|
|
Total
revenue
|
220,813
|
186,292
|
|
Revenue review by
segment – Continental Europe
|
2024
€’000
|
2023
€’000
|
|
Room revenue
|
26,989
|
16,353
|
|
Food and beverage revenue
|
8,596
|
4,935
|
|
Other revenue
|
1,525
|
1,671
|
|
Total
revenue
|
37,110
|
22,959
|
Other geographical
information
|
|
2024
|
|
2023
|
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Owned hotels
|
275,148
|
108,189
|
-
|
383,337
|
|
276,188
|
92,682
|
-
|
368,870
|
|
Leased hotels
|
119,119
|
112,624
|
37,110
|
268,853
|
|
122,259
|
93,610
|
22,959
|
238,828
|
|
Total
revenue
|
394,267
|
220,813
|
37,110
|
652,190
|
|
398,447
|
186,292
|
22,959
|
607,698
|
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
EBITDAR
|
|
|
|
|
|
|
|
|
|
|
Owned hotels
|
116,036
|
41,761
|
-
|
157,797
|
|
118,632
|
37,284
|
-
|
155,916
|
|
Leased hotels
|
51,262
|
39,204
|
11,274
|
101,740
|
|
54,269
|
34,374
|
7,707
|
96,350
|
|
Total
EBITDAR
|
167,298
|
80,965
|
11,274
|
259,537
|
|
172,901
|
71,658
|
7,707
|
252,266
|
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Other
information
|
|
|
|
|
|
|
|
|
|
|
Variable lease costs
|
2,209
|
338
|
97
|
2,644
|
|
2,262
|
576
|
792
|
3,630
|
|
Depreciation of property, plant and
equipment
|
22,149
|
15,406
|
1,761
|
39,316
|
|
20,500
|
11,732
|
559
|
32,791
|
|
Depreciation of right-of-use
assets
|
16,250
|
13,065
|
4,412
|
33,727
|
|
16,036
|
11,225
|
3,402
|
30,663
|
|
Interest on lease
liabilities
|
17,651
|
25,356
|
6,480
|
49,487
|
|
17,797
|
21,048
|
3,906
|
42,751
|
Assets and
liabilities
|
|
2024
|
|
2023
|
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
Republic of
Ireland
|
UK
|
Continental
Europe
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Intangible assets and
goodwill
|
17,848
|
12,376
|
23,425
|
53,649
|
|
18,826
|
11,823
|
23,425
|
54,074
|
|
Property, plant and
equipment
|
1,084,417
|
620,101
|
6,456
|
1,710,974
|
|
1,100,355
|
577,936
|
6,540
|
1,684,831
|
|
Right-of-use assets
|
280,868
|
401,597
|
77,686
|
760,151
|
|
296,774
|
306,381
|
82,038
|
685,193
|
|
Investment property
|
1,150
|
368
|
-
|
1,518
|
|
1,625
|
396
|
-
|
2,021
|
|
Other non-current
receivables
|
7,362
|
-
|
-
|
7,362
|
|
3,287
|
3,131
|
-
|
6,418
|
|
Other current assets
|
37,903
|
30,515
|
4,760
|
73,178
|
|
35,033
|
23,388
|
6,415
|
64,836
|
|
Assets held for sale
|
20,717
|
-
|
-
|
20,717
|
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
excluding derivatives and deferred tax assets
|
1,450,265
|
1,064,957
|
112,327
|
2,627,549
|
|
1,455,900
|
923,055
|
118,418
|
2,497,373
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative assets
|
|
|
|
-
|
|
|
|
|
6,521
|
|
Deferred tax assets
|
|
|
|
33,100
|
|
|
|
|
24,136
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
2,660,649
|
|
|
|
|
2,528,030
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Bank loans and private placement
notes
|
186,379
|
85,005
|
-
|
271,384
|
|
4,000
|
250,387
|
-
|
254,387
|
|
Lease liabilities
|
291,699
|
401,276
|
85,583
|
778,558
|
|
300,157
|
310,697
|
87,744
|
698,598
|
|
Trade and other payables
|
56,780
|
27,756
|
4,135
|
88,671
|
|
55,063
|
24,985
|
6,349
|
86,397
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
excluding derivatives, provision for liabilities and tax
liabilities
|
534,858
|
514,037
|
89,718
|
1,138,613
|
|
359,220
|
586,069
|
94,093
|
1,039,382
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for liabilities
|
|
|
|
8,048
|
|
|
|
|
8,611
|
|
Current tax liabilities
|
|
|
|
1,576
|
|
|
|
|
2,659
|
|
Deferred tax liabilities
|
|
|
|
92,763
|
|
|
|
|
84,441
|
|
Derivative liabilities
|
|
|
|
244
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
1,241,244
|
|
|
|
|
1,135,093
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation
reserve
|
390,606
|
77,999
|
-
|
468,605
|
|
386,450
|
74,731
|
-
|
461,181
|
The above information on assets,
liabilities and revaluation reserve is presented by region as it
does not form part of the segmental information routinely reviewed
by the chief operating decision makers.
Bank loans and private placement
notes are categorised according to their underlying currency
(note 22).
3
Statutory and other information
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Depreciation of property, plant and
equipment
|
39,316
|
32,791
|
|
Depreciation of right-of-use
assets
|
33,727
|
30,663
|
|
Variable lease costs: land and
buildings
|
2,644
|
3,630
|
|
Hotel pre-opening expenses
|
1,895
|
497
|
Hotel pre-opening expenses relate to
costs incurred by the Group in advance of opening new hotels. In
2024, this related to four new hotels that opened throughout 2024.
In 2023, this related to Maldron Hotel Finsbury Park, London, which
opened during 2023. These costs primarily relate to payroll
expenses, sales and marketing costs and training costs of new
staff.
Variable lease costs relate to lease
payments linked to performance which are excluded from the
measurement of lease liabilities as they are not related to an
index or rate or are not considered fixed payments in
substance.
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Audit of Group, Company and
subsidiary financial statements
|
500
|
470
|
|
Other assurance services
|
362
|
32
|
|
Other non-audit services
|
37
|
37
|
|
|
899
|
539
|
Auditor’s remuneration for the audit
of the Company financial statements was €20,000 (2023: €20,000).
Other assurance services primarily relate to the Sustainability
Statement and the review of the interim condensed consolidated
financial statements.
Directors’
remuneration
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Salary and other
emoluments
|
2,710
|
3,575
|
|
Gain on vesting of share-based
awards
|
1,040
|
230
|
|
Fees
|
552
|
496
|
|
Pension costs – defined
contribution
|
74
|
72
|
|
Transactions with past
directors
|
492
|
225
|
|
|
4,868
|
4,598
|
Transactions with past directors in
2024 relate to gains associated with the shares issued on vesting
of awards under the 2021 LTIP scheme (2023: gains on vesting of
awards under the 2020 LTIP). The gain on vesting of share-based
awards represents the difference between the quoted share price per
ordinary share and the exercise price on the vesting date
(note 8) for all current
directors.
Details of the directors’
remuneration, interests in conditional share awards and
compensation of former directors are set out in the Remuneration
Committee report.
4
Administrative expenses
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Administrative wages and
salaries
|
76,500
|
69,178
|
|
Depreciation and amortisation
(note 12,13,14)
|
73,295
|
64,104
|
|
Other administrative
expenses
|
61,405
|
56,977
|
|
Utilities – electricity and
gas
|
24,762
|
27,783
|
|
Commercial rates
|
16,016
|
14,924
|
|
Variable lease costs (note
14)
|
2,644
|
3,630
|
|
Hotel pre-opening expenses
|
1,895
|
497
|
|
Impairment charge/(reversal) relating
to property, plant and equipment through profit and loss
(note 13)
|
1,322
|
(2,025)
|
|
Acquisition-related costs
|
1,106
|
4,389
|
|
Impairment charge relating to
investment property
|
96
|
-
|
|
Impairment reversal relating to
right-of-use assets (note 14)
|
(1,719)
|
-
|
|
Reversal of prior period insurance
provisions (note 21)
|
(990)
|
(927)
|
|
|
256,332
|
238,530
|
Other administrative expenses include
costs related to marketing, commissions and general
administration.
5
Other income
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Income from managed hotels
|
1,063
|
1,099
|
|
Rental income from investment
property
|
384
|
385
|
|
|
1,447
|
1,484
|
Income from managed hotels represents
the fees and other income earned from services provided in relation
to partner hotels which are not owned or leased by the
Group.
Rental income from investment
property relates to the following properties:
Two commercial properties which are
leased to third parties for lease terms of 25 and 30
years;
A sub-lease of part of Clayton Hotel
Cardiff, which is leased to a third party for a lease term of 20
years, with 8 years remaining at 31 December 2024; and
A sub-lease of part of Clayton Hotel
Düsseldorf, which is leased to a third party for a rolling lease
term.
The carrying value of the investment
properties at 31 December 2024 is €1.5 million (2023: €2.0
million). The movement during the year is primarily due to the
reclassification of investment property adjacent to Clayton Whites
Hotel, Wexford which has been classified as held for sale at 31
December 2024 (note 18).
6
Net finance costs
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Finance income
|
(138)
|
-
|
|
Finance
income
|
(138)
|
-
|
|
|
|
|
|
Interest on lease liabilities
(note 14)
|
49,487
|
42,751
|
|
Interest expense on bank
loans
|
16,736
|
15,665
|
|
Cash flow hedges – reclassified from
other comprehensive income
|
(7,688)
|
(6,949)
|
|
Interest on private placement
notes
|
1,597
|
-
|
|
Modification loss
|
7,525
|
-
|
|
Other finance costs
|
1,232
|
1,332
|
|
Net foreign exchange gain on
financing activities
|
(865)
|
(180)
|
|
Interest capitalised to property,
plant and equipment (note 13)
|
(666)
|
(2,008)
|
|
Finance
costs
|
67,358
|
50,611
|
|
Net finance
costs
|
67,220
|
50,611
|
In October 2024, the Group
successfully completed a refinancing of its existing banking
facilities to provide a €475 million multicurrency loan facility
consisting of a €100.0 million green term loan and €375.0 million
revolving credit facility for a five-year term to 9 October 2029,
with two options to extend by a year. As a result, the Group
assessed whether the discounted cash flows under the new facility
discounted at the old effective interest rate were substantially
different from the discounted cash flows under the original
facility. Based on this assessment, the bank loans were deemed to
be substantially modified which resulted in a modification loss of
€7.5 million, which is inclusive of €4.8 million of costs relating
to the new facility, being recognised in profit or loss during the
year ended 31 December 2024 (note 22).
The Group also completed the issuance
of €124.7 million of green private placement loan notes to
institutional investors for terms of five and seven years. Costs in
relation to the private placement are included in the carrying
value of the loans notes and are amortised over the terms of the
loan notes at the effective interest rate (note
22). The private placement notes
carry a fixed coupon rate. However, where the Group's Net Debt to
EBITDA after rent, calculated in line with borrowing covenants,
exceeds certain ratchet levels, varying premiums are added to the
coupon rate depending on the ratchet level.
The Group uses interest rate swaps to
convert the interest rate on part of its bank loans from floating
rate to fixed rate (note 23).
The cash flow hedge amount reclassified from other comprehensive
income is shown separately within finance costs and primarily
represents the additional interest received by the Group as a
result of the interest rate swaps. The Group’s interest rate swaps,
which hedged the interest rate on the previously drawn sterling
term loan of £176.5 million, matured in October 2024. As a result
of the refinancing in October 2024, the Group entered into new
interest rate swaps to hedge the variable interest rate on the new
term loan for four years to October 2028 (note
23). Margins on the Group’s bank
loans are set with reference to the Net Debt to EBITDA after rent
covenant levels and ratchet up or down accordingly.
Other finance costs include
commitment fees and other banking and professional fees. Net
foreign exchange gains on financing activities relate principally
to loans which did not form part of the net investment hedge
(note 25).
Finance costs incurred for qualifying assets, which take a
substantial period of time to construct, are added to the cost of
the asset during the period of time required to complete and
prepare the asset for its intended use or sale. The Group uses two
capitalisation rates being the Euro and Sterling weighted average
interest rates of borrowings and loan notes, including the impact
of hedging if any, which are applied to qualifying assets based on
the currency of their geographic jurisdiction. Capitalisation
commences on the date on which the Group undertakes activities that
are necessary to prepare the asset for its intended use.
Capitalisation of borrowing costs ceases when the asset is ready
for its intended use and is suspended when an active development is
delayed over an extended period and where costs are not deemed
recoverable.
Interest on bank loans and private
placement loan notes amounting to €0.7 million was capitalised to
assets under construction on the basis that these costs were
directly attributable to the construction of qualifying assets
(note 13) (2023: €2.0
million). The capitalisation rates applied by the Group, which were
reflective of the weighted average interest cost in respect of
sterling denominated borrowings for the relevant capitalisation
period, were 3.85% (2023: 3.2%).
7
Personnel expenses
The average number of persons
(full-time equivalents) employed by the Group (including Executive
Directors), analysed by category, was as follows:
|
|
2024
|
2023
|
|
Administration
|
991
|
886
|
|
Other
|
3,041
|
3,110
|
|
|
4,032
|
3,996
|
The average number of persons
(full-time equivalents) split by geographical region was as
follows:
|
|
2024
|
2023
|
|
Dublin (including the Group’s central
functions)
|
1,791
|
1,854
|
|
Regional Ireland
|
939
|
978
|
|
UK
|
1,096
|
1,013
|
|
Continental Europe
|
206
|
151
|
|
|
4,032
|
3,996
|
The aggregate payroll costs of these
persons were as follows:
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Wages and salaries
|
159,680
|
140,674
|
|
Social welfare costs
|
15,274
|
14,187
|
|
Pension costs – defined
contribution
|
3,310
|
1,702
|
|
Share-based payments
expense
|
3,615
|
5,910
|
|
Severance costs
|
75
|
-
|
|
|
181,954
|
162,473
|
Payroll costs of €0.4 million (2023:
€0.5 million) relating to the Group’s internal development
employees were capitalised as these costs are directly related to
development, lease and other construction work completed during the
year ended 31 December 2024.
8
Share-based payments expense
The total share-based payments
expense for the Group’s employee share schemes charged to profit or
loss during the year was €3.6 million (2023: €5.9 million),
analysed as follows:
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Long Term Incentive Plans
|
3,419
|
5,580
|
|
Share Save schemes
|
196
|
330
|
|
|
3,615
|
5,910
|
Details of the schemes operated by
the Group are set out below:
Long Term Incentive
Plans
During the year ended 31 December
2024, the Board approved the conditional grant of 1,634,668
ordinary shares (‘the Award’) pursuant to the terms and conditions
of the Group’s 2017 Long Term Incentive Plan (‘the 2017 LTIP’). The
Award was granted to senior employees across the Group (127 in
total). Vesting of the Award is based on two independently assessed
performance targets, 50% based on Total Shareholder Return (‘TSR’)
and 50% based on Free Cashflow Per Share (‘FCPS’). The performance
period of this award is 1 January 2024 to 31 December
2026.
Threshold performance for the TSR
condition, which is a market-based condition, is a performance
measure against a bespoke comparator group of 19 listed peer
companies in the travel and leisure sector, with threshold 25%
vesting if the Group’s TSR over the performance period is ranked at
the median compared to the TSR of the comparator group. If the
Group’s TSR performance is at or above the upper quartile compared
to the comparator group, the remaining 75% of the award will vest,
with pro-rata vesting on a straight-line basis for performance in
between these thresholds.
Threshold performance (25% vesting)
for the FCPS condition, which is a non-market-based performance
condition, is based on the achievement of FCPS of €0.631, as
disclosed in the Group’s 2026 audited consolidated financial
statements, with 100% vesting for FCPS of €0.771 or greater. The
FCPS based awards will vest on a straight-line basis for
performance between these points.
Participants are also entitled to
receive a dividend equivalent amount in respect of such number of
shares as are released. The Remuneration Committee may amend
or substitute a subsisting Performance Condition if
one or more events occur which cause the Committee to consider that
a substituted or amended Performance Condition would be more
appropriate and would not be materially less or more difficult to
satisfy than the subsisting Performance Condition.
Movements in the number of share
awards are as follows:
|
|
2024
|
2023
|
|
|
Awards
|
Awards
|
|
Outstanding at the beginning of the
year
|
4,089,901
|
4,837,170
|
|
Granted during the year
|
1,634,668
|
1,574,799
|
|
Forfeited during the year
|
(127,780)
|
(52,901)
|
|
Lapsed unvested during the
year
|
-
|
(1,733,533)
|
|
Dividend equivalent
|
(10,744)
|
-
|
|
Exercised during the year
|
(1,081,517)
|
(535,634)
|
|
Outstanding at the
end of the year
|
4,504,528
|
4,089,901
|
|
|
2024
|
2023
|
|
|
Awards
|
Awards
|
|
Grant
date
|
|
|
|
March 2021
|
-
|
1,099,661
|
|
March 2022
|
1,389,631
|
1,427,175
|
|
March 2023
|
1,498,692
|
1,540,346
|
|
May 2023
|
22,719
|
22,719
|
|
March 2024
|
1,593,486
|
-
|
|
Outstanding at the
end of the year
|
4,504,528
|
4,089,901
|
Awards
vested
During the year ended 31 December
2024, the Company issued 1,092,261 shares on foot of the vesting of
awards granted in March 2021 under the terms of the 2017 LTIP, of
which 10,744 were dividend equivalents. The shares were issued
through the Employee Benefit Trust (note 19).
The weighted average share price at
the date of exercise of these awards was €4.32.
Measurement of fair
values
The fair value, at the grant date, of
the TSR-based conditional share awards was measured using a Monte
Carlo simulation model. Non-market-based performance conditions
attached to the awards were not taken into account in measuring
fair value at the grant date.
The valuation and key assumptions
used in the measurement of the fair values of awards at the grant
date were as follows:
|
|
March
2024
|
March
2023
|
March
2022
|
|
Fair value at grant date for
TSR-based awards
|
€2.33
|
€2.93
|
€2.60
|
|
Fair value at grant date for
FCPS-based awards
|
€4.50
|
€4.29
|
€3.89
|
|
Share price at grant date
|
€4.51
|
€4.30
|
€3.90
|
|
Exercise price
|
€0.01
|
€0.01
|
€0.01
|
|
Expected volatility for TSR-based
awards
|
35.04%
p.a.
|
54.83% p.a.
|
53.0% p.a.
|
|
Performance period
|
3 years
|
3 years
|
3 years
|
|
Risk-free rate
|
2.61%
|
2.78%
|
(0.31%)
|
Dividend equivalents accrue on awards
that vest up to the time of vesting under the LTIP schemes, and
therefore the dividend yield has been set to zero to reflect this.
Such dividend equivalents will be released to participants in the
form of additional shares on vesting subject to the satisfaction of
performance criteria. In the absence of available market-implied
and observable volatility, the expected volatility has been
estimated based on the historic share price over a three-year
period.
All active awards include
FCPS-related performance conditions which are non-market-based
performance conditions that do not impact the fair value of the
award at the grant date, which equals the share price less exercise
price. Instead, an estimate is made by the Group as to the number
of shares which are expected to vest based on satisfaction of the
FCPS-related performance condition, where applicable, and this,
together with the fair value of the award at grant date, determines
the accounting charge to be spread over the vesting period. The
estimate of the number of shares which are expected to vest over
the vesting period of the award is reviewed in each reporting
period and the accounting charge is adjusted
accordingly.
Share Save
schemes
The Remuneration Committee of the
Board of Directors approved the granting of share options under the
UK and Ireland Share Save schemes (the ‘Schemes’) for all eligible
employees across the Group from 2019 to 2024. Each Scheme is for
three years and employees may choose to purchase shares over the
six month period following the end of the three year period at the
fixed discounted price set at the start of the three year
period.
During the year ended 31 December
2024, two new schemes were granted to ROI and UK employees (no new
schemes granted in 2023). 535 employees availed of the ROI Scheme
and 259 employees availed of the UK scheme. The share price for the
schemes has been set at a 25% discount for Republic of Ireland
based employees and 20% for UK based employees in line with the
maximum amount permitted under tax legislation in both
jurisdictions.
During the year ended 31 December
2024, 2,000 ordinary shares were exercised on maturity of the share
options granted as part of the Share Save scheme in 2019. There
were also 1,260,587 options exercised on maturity of the share
options granted as part of the Share Save scheme in 2020. The
weighted average exercise price for options exercised during the
year ended 31 December 2024 was €2.35.
Movements in the number of share
options and the related weighted average exercise price (‘WAEP’)
are as follows:
|
|
2024
|
2023
|
|
|
Options
|
WAEP
€ per
share
|
Options
|
WAEP
€ per
share
|
|
Outstanding at the beginning of the
year
|
1,480,299
|
2.39
|
1,695,307
|
2.53
|
|
Granted during the year
|
2,259,760
|
3.03
|
-
|
-
|
|
Forfeited during the year
|
(118,199)
|
2.73
|
(167,520)
|
2.78
|
|
Exercised during the year
|
(1,262,587)
|
2.26
|
(47,488)
|
3.46
|
|
Outstanding at the
end of the year
|
2,359,273
|
2.99
|
1,480,299
|
2.39
|
The weighted average remaining
contractual life for the share options outstanding at 31 December
2024 is 3.1 years (31 December 2023: 0.8 years).
9
Tax charge
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Current
tax
|
|
|
|
Irish corporation tax
charge
|
12,686
|
15,377
|
|
Foreign corporation tax
charge
|
-
|
33
|
|
Under/(over) provision in respect of
prior years
|
368
|
(560)
|
|
|
13,054
|
14,850
|
|
Deferred tax (credit)/charge
(note 24)
|
(557)
|
460
|
|
|
12,497
|
15,310
|
The tax assessed for the year differs
from the standard rate of corporation tax in Ireland for the year.
The differences are explained below.
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Profit before tax
|
91,238
|
105,532
|
|
|
|
|
|
Tax on profit at standard Irish
corporation tax rate of 12.5%
|
11,405
|
13,192
|
|
|
|
|
|
Effects
of:
|
|
|
|
Income taxed at a higher
rate
|
832
|
1,131
|
|
Expenses not deductible for tax
purposes
|
393
|
1,556
|
|
Impact of impairments not
deductible/(revaluation gains not subject to tax)
|
161
|
(108)
|
|
Foreign losses taxed at higher
rate
|
(1,424)
|
(1,137)
|
|
Under/(over) provision in respect of
current tax in prior periods
|
368
|
(560)
|
|
Over provision in respect of deferred
tax in prior periods
|
(919)
|
(893)
|
|
Impact of differing rates between
current tax and deferred tax
|
905
|
991
|
|
Other differences
|
776
|
1,138
|
|
|
12,497
|
15,310
|
The Group has recognised a tax charge
of €12.5 million for the year ended 31 December 2024 (2023: €15.3
million). The tax charge primarily relates to current tax in
respect of profits earned in Ireland during the year of €12.7
million (2023: €15.4 million).
The deferred tax credit for the year
ended 31 December 2024 of €0.6 million (2023: deferred tax charge
of €0.5 million) primarily relates to deferred tax in respect of
tax losses which are available to utilise against future taxable
profits, partially offset by a deferred tax charge arising in
relation to temporary differences related to fixed assets and
revaluations of land and buildings through profit and loss. The
2023 deferred tax charge primarily related to deferred tax arising
on revaluation of land and buildings through profit and
loss.
10
Impairment
At 31 December 2024, as a result of
the carrying amount of the net assets of the Group being more than
its market capitalisation, the Group tested each cash generating
unit (‘CGU’) for impairment as this was deemed to be a potential
impairment indicator. Impairment arises where the carrying value of
the CGU (which includes, where relevant, revalued properties and/or
right-of-use assets, allocated goodwill, fixtures, fittings and
equipment) exceeds its recoverable amount on a value in use (‘VIU’)
basis.
At 31 December 2024, the market
capitalisation of the Group (€994 million) was lower than the net
assets of the Group (€1,419 million) (market capitalisation is
calculated by multiplying the share price on that date by the
number of shares in issue). Market capitalisation can be influenced
by a number of different market factors and uncertainties. In
addition, share prices reflect a discount due to lack of control
rights. The Group as a whole is not considered to be a CGU for the
purposes of impairment testing and instead each hotel operating
unit is considered as a CGU as it is the smallest identifiable
group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups of
assets.
At 31 December 2024, the recoverable
amounts of the Group’s CGUs were based on VIU, determined by
discounting the estimated future cash flows generated from the
continuing use of these hotels. VIU cash flow projections are
prepared for each CGU and then compared against the carrying value
of the assets, including goodwill, properties, fixtures, fittings
and equipment and right-of-use assets, in that CGU. The Group has
not quantified any potential impact of decarbonisation on the
carrying amounts of its assets as part of the impairment review.
This approach may be reviewed in future periods in light of any
emerging legislation or environmental policy changes.
The VIU estimates were based on the
following key assumptions:
Cash flow projections are based on
operating results and forecasts prepared by management covering a
ten year period in the case of freehold properties. This period was
chosen due to the nature of the hotel assets and is consistent with
the valuation basis used by independent external property valuers
when performing their hotel valuations (note 13). For CGUs with right-of-use assets, the lease
term was used;
Revenue and EBITDA for 2025 and
future years are based on management’s best estimate projections as
at 31 December 2024. Forecasted revenue and EBITDA are based on
expectations of future outcomes taking into account the
macro-environment, current earnings, past experience and adjusted
for anticipated revenue and cost growth;
Cash flow projections assume a
long-term compound annual growth rate post 2029 of 2% (2023: 2%) in
EBITDA for all CGUs;
Cash flows include an average annual
capital outlay on maintenance for the hotels dependent on the
condition of the hotel or typically 4% (2023: 4%) of revenues but
assume no enhancements to any property;
In the case of CGUs with freehold
properties, the VIU calculations also include a terminal value
based on terminal (year ten) capitalisation rates consistent with
those used by the external property valuers which incorporates a
long-term growth rate of 2% for all properties;
The cash flows are discounted using a
risk adjusted discount rate specific to each property. Risk
adjusted discount rates of 8.5% to 11.35% for Dublin assets (31
December 2023: 8.50% to 11.35%), 10.60% to 11.10% for Regional
Ireland assets (31 December 2023: 10.00% to 12.75%), 7.60% to
10.20% for UK assets (31 December 2023: 7.40% to 11.50%), and 7.50%
to 8.00% for Continental Europe assets (31 December 2023: 7.50% to
8.00%) have been used; and
The values applied to each of these
key assumptions are derived from a combination of internal and
external factors based on historical experience of the valuers and
of management and taking into account the stability of cash flows
typically associated with these factors.
Following the impairment assessments
carried out on the Group’s CGUs at 31 December 2024, the
recoverable amount was deemed lower than the carrying amount in one
of the Group’s UK CGUs and resulted in an impairment charge of €1.3
million (£1.1 million) relating to property, plant and equipment
(note 13).
At 31 December 2024, the recoverable
amount was deemed higher than the carrying amount in one of the
Group’s UK CGUs, which had previously incurred impairment charges,
and resulted in an impairment reversal of €1.7 million (£1.5
million), relating to a right-of-use asset (note
14).
At 31 December 2024, the carrying
value of the Group’s other CGUs did not exceed their recoverable
amount and no other impairment movements were required following
the assessment.
If the 2025 EBITDA forecasts used in
cashflow in VIU estimates for impairment testing as at 31 December
2024 had been forecast 10% lower, there would still
have been no additional impairment for the year ended 31 December
2024 for right-of-use assets and fixtures, fittings and equipment
and allocated goodwill.
11
Business combinations
During the year ended 31 December
2023, the Group acquired two business units requiring the
acquisition method of accounting.
Acquisition of
Clayton Hotel London Wall
On 3 July 2023, the Group acquired
the long leasehold interest and trade of Apex Hotel London Wall,
now trading as Clayton Hotel London Wall, for cash consideration of
£53.4 million (€62.1 million).
The Group became party to a ground
lease as part of the acquisition and recognised lease liabilities
and right-of-use assets of £2.0 million (€2.3 million). The ground
lease has a remaining life of 107 years. This exceeds the estimated
useful life of the building as at the acquisition date and hence
the building has been accounted for as an owned hotel.
The fair value of the identifiable
assets and liabilities acquired were as follows:
|
|
3 July
2023
Fair
value
|
3 July
2023
Fair
value
|
|
|
£’000
|
€’000
|
|
Recognised amounts
of identifiable assets acquired and liabilities assumed
|
|
|
|
Non-current
assets
|
|
|
|
Hotel property
|
51,366
|
59,742
|
|
Fixtures, fittings and
equipment
|
2,034
|
2,365
|
|
Right-of-use asset
|
2,017
|
2,346
|
|
Current
assets
|
|
|
|
Net working capital
liabilities
|
(21)
|
(24)
|
|
Non-current
liabilities
|
|
|
|
Lease liability
|
(1,997)
|
(2,323)
|
|
Current
liabilities
|
|
|
|
Lease liability
|
(20)
|
(23)
|
|
Total identifiable
net assets
|
53,379
|
62,083
|
|
Total cash
consideration
|
53,379
|
62,083
|
The acquisition method of accounting
has been used to consolidate the business acquired in the Group’s
consolidated financial statements. No goodwill has been recognised
on acquisition as the fair value of the net assets acquired equated
to the consideration paid.
Acquisition-related costs of £3.3
million (€3.8 million) were charged to administrative expenses in
profit or loss in respect of this business combination.
Acquisition of
Clayton Hotel Amsterdam American
On 3 October 2023, the Group acquired
100% of the share capital of American Hotel Exploitatie BV which
holds the operational lease of the Hard Rock Hotel Amsterdam
American, now trading as Clayton Hotel Amsterdam American, for cash
consideration of €28.3 million and assumed net working capital
liabilities of €1.2 million.
The remaining lease term is 18 years,
with two 5-year tenant extension options. This resulted in the
recognition of a lease liability of €41.0 million and a
right-of-use asset of €41.0 million.
The fair value of the identifiable
assets and liabilities acquired were as follows:
|
|
3
October 2023
Fair
value
|
|
|
€’000
|
|
Recognised amounts
of identifiable assets acquired and liabilities assumed
|
|
|
Non-current
assets
|
|
|
Right-of-use asset
|
41,036
|
|
Fixtures, fittings and
equipment
|
6,065
|
|
Deferred tax asset
|
10,587
|
|
Current
assets
|
|
|
Trade and other
receivables
|
974
|
|
Stock
|
98
|
|
Cash
|
8
|
|
Non-current
liabilities
|
|
|
Deferred tax liability
|
(10,587)
|
|
Lease liability
|
(40,066)
|
|
Current
liabilities
|
(1,962)
|
|
Trade and other payables
|
(970)
|
|
Lease liability
|
(264)
|
|
Accruals
|
41,036
|
|
Total identifiable
net assets
|
4,919
|
|
Total cash
consideration
|
28,344
|
|
Goodwill
|
23,425
|
Goodwill of €23.4 million has been
recognised due to the acquisition of Clayton Hotel Amsterdam
American, as the consideration exceeded the fair value of the
identifiable net assets acquired.
The goodwill acquired as part of this
transaction comprises certain intangible assets that cannot be
separately identified. This includes future trading and the future
growth opportunities the business provides to the Group’s
operations due to the geographical location of the hotel, access to
the Amsterdam market, which restricts new hotel developments, and
the skills and experience of an assembled workforce.
Acquisition-related costs of €0.6
million were charged to administrative expenses in profit or loss
in respect of this business combination.
12
Intangible assets and goodwill
|
|
Goodwill
|
Other
intangible
assets
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
|
Cost or
valuation
|
|
|
|
|
Balance at 1 January 2024
|
102,769
|
2,804
|
105,573
|
|
Disposal
|
(176)
|
-
|
(176)
|
|
Reclassification to held for sale
assets (note 18)
|
(550)
|
-
|
(550)
|
|
Effect of movements in exchange
rates
|
553
|
-
|
553
|
|
Balance at 31
December 2024
|
102,596
|
2,804
|
105,400
|
|
|
|
|
|
|
Balance at 1 January 2023
|
79,106
|
2,797
|
81,903
|
|
Additions
|
23,425
|
7
|
23,432
|
|
Effect of movements in exchange
rates
|
238
|
-
|
238
|
|
Balance at 31 December
2023
|
102,769
|
2,804
|
105,573
|
|
|
|
|
|
|
Accumulated
amortisation and impairment losses
|
|
|
|
|
Balance at 1 January 2024
|
(48,947)
|
(2,552)
|
(51,499)
|
|
Amortisation of intangible
assets
|
-
|
(252)
|
(252)
|
|
Balance at 31
December 2024
|
(48,947)
|
(2,804)
|
(51,751)
|
|
|
|
|
|
|
Balance at 1 January 2023
|
(48,947)
|
(1,902)
|
(50,849)
|
|
Amortisation of intangible
assets
|
-
|
(650)
|
(650)
|
|
Balance at 31 December
2023
|
(48,947)
|
(2,552)
|
(51,499)
|
|
|
|
|
|
|
Carrying
amounts
|
|
|
|
|
|
|
|
|
|
At 31 December
2024
|
53,649
|
-
|
53,649
|
|
At 31 December 2023
|
53,822
|
252
|
54,074
|
Goodwill
Goodwill is attributable to factors
including expected profitability and revenue growth, increased
market share, increased geographical presence, the opportunity to
develop the Group’s brands and the synergies expected to arise
within the Group after acquisition.
During the year, the Group disposed
of Maldron Hotel Wexford, disposing of goodwill of €0.2 million. At
31 December 2024, the goodwill associated with Clayton Whites
Hotel, Wexford of €0.6 million, was reclassified to held for
sale (note 18).
As at 31 December 2024, the goodwill
cost figure includes €12.4 million (£10.3 million) which is
attributable to goodwill arising on acquisition of foreign
operations denominated in sterling. Consequently, such goodwill is
subsequently retranslated at the closing rate. The retranslation at
31 December 2024 resulted in a foreign exchange gain of €0.6
million and a corresponding increase in goodwill. The comparative
retranslation at 31 December 2023 resulted in a foreign exchange
gain of €0.2 million.
|
|
Number
of cash-generating units
|
|
|
|
|
At 31
December 2024
|
2024
|
2023
|
|
Carrying amount of
goodwill allocated
|
|
€’000
|
€’000
|
|
Moran Bewley Hotel Group
(i)
|
7
|
25,245
|
24,725
|
|
Other acquisitions (i)
|
2
|
810
|
1,327
|
|
2007 Irish hotel operations acquired
(ii)
|
2
|
4,169
|
4,345
|
|
Clayton Hotel Amsterdam American
(iii)
|
1
|
23,425
|
23,425
|
|
|
12
|
53,649
|
53,822
|
The above table represents the number
of CGUs to which goodwill was allocated at 31 December
2024.
Annual goodwill
testing
The Group tests goodwill annually for
impairment and more frequently if there are indications that
goodwill might be impaired. Due to the Group’s policy of
revaluation of land and buildings, and the allocation of goodwill
to individual CGUs, impairment of goodwill can occur for CGUs where
the Group owns the freehold as the Group realises the profit and
revenue growth and synergies which underpinned the goodwill. As
these materialise, they are recorded as revaluation gains to the
carrying value of the property and consequently, elements of
goodwill may be required to be written off if the carrying value of
the CGU (which includes revalued property and allocated goodwill)
exceeds its recoverable amount on a VIU basis. The impairment of
goodwill is recorded through profit or loss though the revaluation
gains on property are taken to reserves through other comprehensive
income provided there were no previous impairment charges through
profit or loss.
At 31 December 2024, the recoverable
amounts of the CGUs were based on VIU, determined by discounting
the future cash flows generated from the continuing use of these
hotels. Following the impairment assessment carried out at 31
December 2024, there was no impairment relating to the CGUs with a
carrying value of goodwill (2023: €Nil). For freehold assets, costs
of acquisition of a willing buyer which are factored in by external
valuers when calculating the fair value price of the asset are
significant for these assets (2024: Ireland 9.96%, UK 6.8%, 2023:
Ireland 9.96%, UK 6.8%). Purchasers’ costs are a key difference
between VIU and fair value less costs of disposal as prepared by
external valuers. Note 10 details the assumptions used in the VIU estimates
for impairment testing.
Future under-performance in any of
the Group’s major CGUs may result in a material write-down of
goodwill which would have a substantial impact on the Group’s
results and equity.
(i) Moran
Bewley Hotel Group and other single asset acquisitions
For the purposes of impairment
testing, goodwill has been allocated to each of the hotels acquired
as CGUs. The freehold interest in the property is owned by the
Group and therefore these hotel properties are valued annually by
independent external valuers. As such the recoverable amount of
each CGU is based on a fair value less costs of disposal estimate,
or where this value is less than the carrying value of the asset,
the VIU of the CGU is assessed. The goodwill relating to Clayton
Whites Hotel, Wexford was reclassified to held for sale
(note 18).
(ii) 2007
Irish hotel operations acquired
For the purposes of impairment
testing, goodwill has been allocated to each of the CGUs
representing the Irish hotel operations acquired in 2007. Eight
hotels were acquired at that time but only four of these hotels had
goodwill associated with them. The goodwill related to one of these
CGUs was fully impaired (€2.6 million) during the year ended 31
December 2020. During 2024 the Group disposed of Maldron Hotel
Wexford and the goodwill relating to the hotel was derecognised.
The remaining two hotels are valued annually by independent
external valuers, as the freehold interest in the property is now
also owned by the Group. Where hotel properties are valued annually
by independent external valuers, the recoverable amount of each CGU
is based on a fair value less costs of disposal estimate, or where
this value is less than the carrying value of the asset, the VIU of
the CGU is assessed. The recoverable amount at 31 December 2024 of
each of these CGUs which have associated goodwill is based on VIU.
VIU is determined by discounting the future cash flows to be
generated from the continuing use of these hotels. Following the
impairment assessment carried out at 31 December 2024, there was no
impairment of goodwill relating to these CGUs.
(iii)
Clayton Hotel Amsterdam American
Goodwill of €23.4 million has been
recognised due to the acquisition of the leasehold of Clayton Hotel
Amsterdam American, as the consideration exceeded the fair value of
the identifiable net assets acquired. The goodwill acquired as part
of this transaction comprises certain intangible assets that cannot
be separately identified. This includes future trading and the
future growth opportunities the business provides to the Group’s
operations due to the geographical location of the hotel, access to
the Amsterdam market, which restricts new hotel developments, and
the skills and experience of an assembled workforce.
The recoverable amount at 31 December
2024 is based on VIU. VIU is determined by discounting the future
cash flows to be generated from the continuing use of the hotel.
Following the impairment assessment carried out at 31 December
2024, there was no impairment of goodwill.
Other intangible
assets
Other intangible assets are fully
amortised at 31 December 2024 (2023: €0.3 million).
13
Property, plant and equipment
|
|
Land
and buildings
|
Assets
under construction
|
Fixtures, fittings
and equipment
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
At 31 December
2024
|
|
|
|
|
|
Valuation
|
1,564,246
|
-
|
-
|
1,564,246
|
|
Cost
|
-
|
30,741
|
217,508
|
248,249
|
|
Accumulated depreciation (and
impairment charges) *
|
-
|
-
|
(101,521)
|
(101,521)
|
|
Net carrying
amount
|
1,564,246
|
30,741
|
115,987
|
1,710,974
|
|
|
|
|
|
|
|
At 1 January 2024,
net carrying amount
|
1,478,636
|
101,703
|
104,492
|
1,684,831
|
|
Additions through capital
expenditure
|
64
|
21,123
|
31,891
|
53,078
|
|
Disposal
|
(7,347)
|
-
|
(861)
|
(8,208)
|
|
Assets held for sale (note
18)
|
(17,650)
|
-
|
(2,092)
|
(19,742)
|
|
Transfer from Assets under
construction to Land and buildings, and Fixtures, fittings and
equipment
|
91,350
|
(97,036)
|
5,686
|
-
|
|
Capitalised labour costs
|
52
|
47
|
23
|
122
|
|
Capitalised borrowing costs
(note 6)
|
-
|
666
|
-
|
666
|
|
Revaluation gains through
OCI
|
13,083
|
-
|
-
|
13,083
|
|
Impairment charge through profit or
loss
|
(1,352)
|
-
|
30
|
(1,322)
|
|
Depreciation charge for the
year
|
(14,663)
|
-
|
(24,653)
|
(39,316)
|
|
Translation adjustment
|
22,073
|
4,238
|
1,471
|
27,782
|
|
At 31 December
2024, net carrying amount
|
1,564,246
|
30,741
|
115,987
|
1,710,974
|
|
|
|
|
|
|
|
The equivalent disclosure for the
prior year is as follows:
|
|
|
|
|
|
At 31 December
2023
|
|
|
|
|
|
Valuation
|
1,478,636
|
-
|
-
|
1,478,636
|
|
Cost
|
-
|
101,703
|
187,951
|
289,654
|
|
Accumulated depreciation (and
impairment charges) *
|
-
|
-
|
(83,459)
|
(83,459)
|
|
Net carrying
amount
|
1,478,636
|
101,703
|
104,492
|
1,684,831
|
|
|
|
|
|
|
|
At 1 January 2023,
net carrying amount
|
1,281,344
|
64,556
|
81,547
|
1,427,447
|
|
Acquisitions through business
combinations
|
59,742
|
-
|
8,430
|
68,172
|
|
Additions through capital
expenditure
|
50,351
|
33,892
|
34,038
|
118,281
|
|
Capitalised labour costs
|
120
|
142
|
66
|
328
|
|
Capitalised borrowing costs
(note 6)
|
-
|
2,008
|
-
|
2,008
|
|
Revaluation gains through
OCI
|
92,098
|
-
|
-
|
92,098
|
|
Reversal of impairment charge through
profit or loss
|
2,020
|
-
|
-
|
2,020
|
|
Depreciation charge for the
year
|
(12,769)
|
-
|
(20,022)
|
(32,791)
|
|
Translation adjustment
|
5,730
|
1,105
|
433
|
7,268
|
|
At 31 December
2023, net carrying amount
|
1,478,636
|
101,703
|
104,492
|
1,684,831
|
* Accumulated depreciation of buildings is stated
after the elimination of depreciation, revaluation, disposals and
impairments.
The carrying value of land and
buildings (revalued at 31 December 2024) is €1,564.2 million (2023:
€1,478.6 million). The value of these assets under the cost model
is €1,037.2 million (2023: €959.9 million). In 2024, unrealised
revaluation gains of €13.1 million have been reflected in other
comprehensive income and in the revaluation reserve in equity
(2023: €92.1 million). Impairment losses through profit and loss
were €1.3 million and were reflected in administrative expenses
through profit or loss (2023: Impairment reversal €2.0
million).
Included in land and buildings at 31
December 2024 is land at a carrying value of €563.4 million (2023:
€521.9 million) which is not depreciated. There are €17.3 million
of fixtures, fittings and equipment which have been depreciated in
full but are still in use at 31 December 2024 (31 December 2023:
€13.5 million).
Additions to assets under
construction during the year end 31 December 2024 primarily relate
to development expenditure incurred on the construction of the
Clayton Hotel Edinburgh. On the completion of Maldron Hotel
Shoreditch, the cumulative costs capitalised to assets under
construction related to the hotel were transferred to land and
buildings and fixtures, fittings and equipment.
During the year end 31 December 2024,
the Group disposed of Maldron Hotel Wexford for a consideration of
€8.6 million. The net proceeds amounted to €8.3 million. The gain
after transaction costs amounted to €4.0 million, which has been
measured in other comprehensive income. The cumulative revaluation
reserve gain, net of tax charges of €1.9 million (note
24) was transferred to retained
earnings on completion of the disposal.
During November 2024, management
exchanged contracts for the sale of Clayton Whites Hotel, Wexford.
At the end of the financial year, the hotel was revalued based on
the agreed transaction values and the fair value uplift was
recognised in the revaluation reserve. The fair value of the
Clayton Whites Hotel, Wexford property was reclassified as a
current asset held for sale at 31 December 2024 (note
18), with completion of the sale
taking place in January 2025 (note 28).
Capitalised labour costs of €0.1
million (2023: €0.3 million) relate to the Group’s internal
development and building team and are directly related to asset
acquisitions and construction and maintenance work completed in
relation to the Group’s property, plant and equipment.
Acquisitions through business
combinations for the year ended 31 December 2023, relate to the
acquisition of Clayton Hotel London Wall of £53.4 million (€62.1
million) and Clayton Hotel Amsterdam American of €6.1 million
(note 11). Other additions
through capital expenditure primarily relate to the 2023
acquisition of Maldron Hotel Finsbury Park, London, which totalled
£49.5 million (€56.9 million).
Impairment assessments were carried
out on the Group’s CGUs at 31 December 2024. The recoverable amount
was deemed lower than the carrying amount in one of the Group’s UK
CGUs and resulted in an impairment charge of €1.3 million (£1.1
million) relating to property, plant and equipment (note
10). No other impairment charge has
been recorded for the Group’s other CGUs as the recoverable amount
was deemed higher than the carrying amount.
At 31 December 2024, impairment
reversal assessments were carried out on the Group’s CGUs where
there had been a previous impairment of fixtures, fittings and
equipment. Following this assessment, no impairment reversals of
previous impairments were necessary (2023: €Nil) (note
10).
At 31 December 2024, property, plant
and equipment with a carrying amount of €1,054.1million (2023:
€1,368.3 million) were pledged as security for bank loans and
private placement notes.
The Group operates the Maldron Hotel
Limerick and, since the acquisition of Fonteyn Property Holdings
Limited in 2013, holds a secured loan over that property. The loan
is not expected to be repaid. Accordingly, the Group has the risks
and rewards of ownership and accounts for the hotel as an owned
property, reflecting the substance of the arrangement.
The value of the Group’s property at
31 December 2024 reflects open market valuations carried out as at
31 December 2024 by independent external valuers having appropriate
recognised professional qualifications and recent experience in the
location and value of the property being valued. The external
valuations performed were in accordance with the Royal Institution
of Chartered Surveyors (RICS) Valuation Standards.
Measurement of fair
value
The fair value measurement of the
Group’s own-use property has been categorised as a Level 3 fair
value based on the inputs to the valuation technique used. At 31
December 2024, 30 properties were revalued by independent external
valuers engaged by the Group (31 December 2023: 31).
The principal valuation technique
used by the independent external valuers engaged by the Group was
discounted cash flows. This valuation model considers the present
value of net cash flows to be generated from the property over a
ten year period (with an assumed terminal value at the end of year
10). Valuers’ forecast cash flow included in these calculations
represents the expectations of the valuers for EBITDA (driven by
average room rate (‘ARR’) (calculated as total revenue divided by
total rooms sold) and occupancy) for the property and also takes
account of the expectations of a prospective purchaser. It also
includes their expectation for capital expenditure which the
valuers, typically, assume as approximately 3%-4% of revenue per
annum, dependent on the individual property’s characteristics. This
does not always reflect the profile of actual capital expenditure
incurred by the Group. On specific assets, refurbishments are, by
nature, periodic rather than annual. Valuers’ expectations of
EBITDA are based off their trading forecasts (benchmarked against
competition, market and actual performance). The expected net cash
flows are discounted using risk adjusted discount rates. Among
other factors, the discount rate estimation considers the quality
of the property and its location. The final valuation also includes
a deduction of full purchaser’s costs based on the valuers’
estimates at 9.96% for assets located in the Republic of Ireland
(31 December 2023: 9.96%) and 6.8% for assets located in the UK (31
December 2023: 6.8%).
The valuers use their professional
judgement and experience to balance the interplay between the
different assumptions and valuation influences. For example,
initial discounted cash flows based on individually reasonable
inputs may result in a valuation which challenges the price per key
metrics (value of hotel divided by room numbers) in recent hotel
transactions. This would then result in one or more of the inputs
being amended for preparation of a revised discounted cash flow.
Consequently, the individual inputs may change from the prior
period or may look individually unusual and therefore must be
considered as a whole in the context of the overall
valuation.
It was noted by the independent
valuers that climate risk and ESG considerations have had little or
no impact on valuations at 31 December 2024.
The significant unobservable inputs
and drivers thereof are summarised in the following
table:
Significant
unobservable inputs
|
|
31
December 2024
|
|
|
Dublin
|
Regional
Ireland
|
UK
|
Total
|
|
|
Number
of hotel assets
|
|
RevPar (Revenue per
available room)
|
|
|
|
|
|
<€/£100
|
1
|
4
|
6
|
11
|
|
€100-€125/£100-£125
|
4
|
5
|
2
|
11
|
|
>€125/£125
|
5
|
1
|
2
|
8
|
|
|
10
|
10
|
10
|
30
|
|
Terminal (Year 10)
capitalisation rate
|
|
|
|
|
|
<8%
|
7
|
2
|
7
|
16
|
|
8%-10%
|
3
|
6
|
3
|
12
|
|
>10%
|
-
|
2
|
-
|
2
|
|
|
10
|
10
|
10
|
30
|
|
Price per
key*
|
|
|
|
|
|
< €150k/£150k
|
1
|
6
|
4
|
11
|
|
€150k-€250k/£150k-£250k
|
2
|
4
|
1
|
7
|
|
€250k-€350k/£250k-£350k
|
3
|
-
|
2
|
5
|
|
> €350k/£350k
|
4
|
-
|
3
|
7
|
|
|
10
|
10
|
10
|
30
|
|
|
31
December 2023
|
|
|
Dublin
|
Regional
Ireland
|
UK
|
Total
|
|
|
Number
of hotel assets
|
|
RevPar (Revenue per
available room)
|
|
|
|
|
|
<€/£100
|
-
|
-
|
2
|
2
|
|
€100-€125/£100-£125
|
2
|
7
|
4
|
13
|
|
>€125/£125
|
8
|
5
|
3
|
16
|
|
|
10
|
12
|
9
|
31
|
|
Terminal (Year 10)
capitalisation rate
|
|
|
|
|
|
<8%
|
7
|
-
|
5
|
12
|
|
8%-10%
|
3
|
8
|
4
|
15
|
|
>10%
|
-
|
4
|
-
|
4
|
|
|
10
|
12
|
9
|
31
|
|
Price per
key*
|
|
|
|
|
|
< €150k/£150k
|
1
|
9
|
4
|
14
|
|
€150k-€250k/£150k-£250k
|
1
|
2
|
1
|
4
|
|
€250k-€350k/£250k-£350k
|
5
|
1
|
2
|
8
|
|
> €350k/£350k
|
3
|
-
|
2
|
5
|
|
|
10
|
12
|
9
|
31
|
* Price per key represents the valuation of a hotel
divided by the number of rooms in that hotel.
The significant unobservable inputs
are:
Valuers’ forecast cash
flows.
Risk adjusted discount rates and
terminal (Year 10) capitalisation rates are specific to each
property;
Dublin assets:
Risk adjusted discount rates range
between 8.50% and 11.35% (31 December 2023: 8.50% and
11.35%).
Weighted average risk adjusted
discount rate is 9.41% (31 December 2023: 9.40%).
Terminal capitalisation rates range
between 6.50% and 9.35% (31 December 2023: 6.50% and
9.35%).
Weighted average terminal
capitalisation rate is 7.41% (31 December 2023: 7.40%).
Regional Ireland:
Risk adjusted discount rates range
between 9.75% and 12.75% (31 December 2023: 10.0% and
12.75%).
Weighted average risk adjusted
discount rate is 10.56% (31 December 2023: 11.06%).
Terminal capitalisation rates range
between 7.75% and 10.75% (31 December 2023: 8.0% and
10.75%).
Weighted average terminal
capitalisation rate is 8.56% (31 December 2023: 9.06%).
UK:
Risk adjusted discount rates range
between 7.30% and 11.50% (31 December 2023: 7.40% and
11.50%).
Weighted average risk adjusted
discount rate is 8.31% (31 December 2023: 8.77%).
Terminal capitalisation rates range
between 5.30% and 9.50% (31 December 2023: 5.40% and
9.50%).
Weighted average terminal
capitalisation rate is 6.31% (31 December 2023: 6.77%).
The estimated fair value under this
valuation model may increase or decrease if:
Valuers’ forecast cash flow was
higher or lower than expected; and/or
The risk adjusted discount rate and
terminal capitalisation rate was lower or higher.
Valuations also had regard to
relevant price per key metrics from hotel sales
activity.
The property revaluation exercise
carried out by the Group’s external valuers is a complex exercise,
which not only takes into account the future earnings forecast for
the hotels, but also a number of other factors, including and not
limited to, market conditions, comparable hotel sale transactions,
inflation and the underlying value of an asset. As a result, it is
not possible for the Group to perform a quantitative sensitivity
for a change in the property values. A change in an individual
quantitative variable would not necessarily lead to an equivalent
change in the overall outcome and would require the application of
judgement of the valuers in terms of how the variable change could
potentially impact on overall valuations.
14
Leases
Group as a
lessee
The Group leases property assets,
which includes land and buildings and related fixtures and
fittings, and other equipment, relating to vehicles, machinery and
IT equipment. Information about leases for which the Group is a
lessee is presented below:
Right-of-use
assets
|
|
Property
assets
|
Other
equipment
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
|
Net book value at 1
January 2024
|
684,600
|
593
|
685,193
|
|
|
|
|
|
|
Additions
|
75,816
|
206
|
76,022
|
|
Depreciation charge for the
year
|
(33,531)
|
(196)
|
(33,727)
|
|
Remeasurement of lease
liabilities
|
14,743
|
-
|
14,743
|
|
Reversal of previous impairment
charge
|
1,719
|
-
|
1,719
|
|
Translation adjustment
|
16,198
|
3
|
16,201
|
|
Net book value at
31 December 2024
|
759,545
|
606
|
760,151
|
|
Net book value at 1
January 2023
|
657,790
|
311
|
658,101
|
|
|
|
|
|
|
Acquisitions through business
combinations (note 11)
|
43,382
|
-
|
43,382
|
|
Additions
|
-
|
375
|
375
|
|
Depreciation charge for the
year
|
(30,570)
|
(93)
|
(30,663)
|
|
Remeasurement of lease
liabilities
|
7,808
|
-
|
7,808
|
|
Translation adjustment
|
6,190
|
-
|
6,190
|
|
Net book value at
31 December 2023
|
684,600
|
593
|
685,193
|
Right-of-use assets comprise leased
assets that do not meet the definition of investment
property.
Lease
liabilities
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Current
|
12,040
|
10,347
|
|
Non-current
|
686,558
|
641,444
|
|
Lease liabilities
at 1 January
|
698,598
|
651,791
|
|
|
|
|
|
Additions
|
61,363
|
375
|
|
Acquisitions through business
combinations (note 11)
|
-
|
43,382
|
|
Interest on lease liabilities
(note 6)
|
49,487
|
42,751
|
|
Lease payments
|
(61,254)
|
(53,498)
|
|
Remeasurement of lease
liabilities
|
13,781
|
7,808
|
|
Translation adjustment
|
16,583
|
5,989
|
|
Lease liabilities
at 31 December
|
778,558
|
698,598
|
|
|
|
|
|
Current
|
13,939
|
12,040
|
|
Non-current
|
764,619
|
686,558
|
|
Lease liabilities
at 31 December
|
778,558
|
698,598
|
Additions during the year ended 31
December 2024 relate to:
In May 2024, the Group entered into a
35 year lease of Maldron Hotel Manchester Cathedral Quarter. This
resulted in the recognition of a lease liability of €16.3 million
(£13.9 million) and a right-of-use asset of €20.3 million (£17.2
million), which includes initial direct costs of €4.0 million (£3.3
million).
In July 2024, the Group entered into
a 35 year lease of Maldron Hotel Liverpool. This resulted in the
recognition of a lease liability of €21.4 million (£18.1 million)
and a right-of-use asset of €27.4 million (£23.2 million), which
includes initial direct costs of €6.0 million (£5.1
million).
In July 2024, the Group entered into
a 35 year lease of Maldron Hotel Brighton. This resulted in the
recognition of a lease liability of €23.5 million (£19.8 million)
and a right-of-use asset of €28.2 million (£23.9 million), which
includes initial direct costs of €4.7 million (£4.1
million).
Acquisitions through business
combinations during the year ended 31 December 2023 related
to:
In July 2023, the Group acquired the
ground lease of the Apex Hotel London Wall, which was subsequently
re-branded Clayton Hotel London Wall, with 107 years remaining on
the lease at the date of acquisition. This resulted in the
recognition of a lease liability of €2.3 million (£2.0 million) and
a right-of-use asset of €2.3 million (£2.0 million).
In October 2023, the Group acquired
100% of the share capital of American Hotel Exploitatie BV which
held the operational lease of the Hard Rock Hotel Amsterdam
American, now trading as Clayton Hotel Amsterdam American. The
lease term remaining on acquisition was 18 years, with two 5-year
tenant extension options. This resulted in the recognition of a
lease liability of €41.0 million and right-of-use asset of €41.0
million.
The weighted average incremental
borrowing rate for leases newly entered into during the year ended
31 December 2024 is 10.0% (2023: 8.8%).
During the year ended 31 December
2024, a lease amendment, which was not included in the original
lease agreement was made to Clayton Hotel Manchester Airport. This
has been treated as a modification of lease liabilities and
resulted in an increase to the lease liability of €7.2 million
(£6.0 million) and an increase to the carrying value of the
right-of-use asset of €8.1 million (£6.8 million), which includes
initial direct costs of €0.9 million (£0.8 million).
During the year ended 31 December
2023, a lease amendment, which was not included in the original
lease agreement, was made to one of the Group’s leases. This was
treated as a modification of lease liabilities and resulted in an
increase in lease liabilities and the carrying value of the
right-of-use asset of €4.5 million.
Following agreed rent reviews and
rent adjustments, which formed part of the original lease
agreements, certain of the Group’s leases were reassessed during
the year. This resulted in an increase in lease liabilities and
related right-of-use assets of €6.6 million (2023: €3.3
million).
Variable lease costs which are linked
to an index rate or are considered fixed payments in substance are
included in the measurement of lease liabilities. These represent
€80.0 million of lease liabilities at 31 December 2024 (31 December
2023: €61.2 million).
Non-cancellable undiscounted lease
cash flows payable under lease contracts are set out
below:
|
|
At 31
December 2024
|
|
|
Republic of
Ireland
|
Continental
Europe
|
UK
|
Total
|
|
|
€’000
|
€’000
|
£’000
|
€’000
|
|
During the year 2025
|
26,540
|
8,836
|
26,266
|
67,053
|
|
During the year 2026
|
24,457
|
8,836
|
25,783
|
64,388
|
|
During the year 2027
|
24,485
|
8,836
|
26,232
|
64,957
|
|
During the year 2028
|
24,565
|
8,836
|
26,300
|
65,119
|
|
During the year 2029
|
24,527
|
8,836
|
26,474
|
65,291
|
|
During the years 2030 –
2039
|
234,867
|
88,362
|
276,287
|
656,434
|
|
During the years 2040 –
2049
|
135,452
|
19,143
|
297,687
|
513,609
|
|
From 2050 onwards
|
59,594
|
-
|
817,603
|
1,045,632
|
|
|
554,487
|
151,685
|
1,522,632
|
2,542,483
|
|
|
At 31
December 2023
|
|
|
Republic of
Ireland
|
Continental
Europe
|
UK
|
Total
|
|
|
€’000
|
€’000
|
£’000
|
€’000
|
|
Year ended 31 December
2024
|
26,283
|
8,780
|
19,588
|
57,603
|
|
During the year 2025
|
26,475
|
8,827
|
19,660
|
57,924
|
|
During the year 2026
|
24,577
|
8,827
|
19,753
|
56,133
|
|
During the year 2027
|
24,419
|
8,827
|
20,211
|
56,502
|
|
During the year 2028
|
24,500
|
8,827
|
20,327
|
56,717
|
|
During the year 2029
|
24,462
|
8,827
|
20,403
|
56,766
|
|
During the years 2030 –
2039
|
234,867
|
88,268
|
213,524
|
568,833
|
|
During the years 2040 –
2049
|
135,452
|
19,121
|
230,987
|
420,366
|
|
From 2050 onwards
|
59,594
|
-
|
145,688
|
227,235
|
|
|
580,629
|
160,304
|
710,141
|
1,558,079
|
Sterling amounts have been converted
using the closing foreign exchange rate of 0.82918 as at 31
December 2024 (0.86905 as at 31 December 2023).
The actual cash flows will depend on
the composition of the Group’s lease portfolio in future years and
are subject to change, driven by:
commencement of new
leases;
modifications of existing leases;
and
reassessments of lease liabilities
following periodic rent reviews.
It excludes leases on hotels for
which an agreement for lease has been signed.
During the year ended 31 December
2024, the Group made lease amendments, which were not included in
the original lease agreements, and entered new lease agreements.
One of the lease amendments extended the remaining lease term from
60 to 200 years, significantly increasing the value of
non-cancellable undiscounted lease cash flows payable and the
weighted average lease life of future minimum rental
payments.
The weighted average lease life of
future minimum rentals payable under leases is 82.8 years (31
December 2023: 29.5 years). Excluding the lease at Clayton
Manchester Airport which has a term of 200 years, the weighted
average lease of future minimum rentals payable under leases would
be 29.0 years. Lease liabilities are monitored within the Group’s
treasury function.
For the year ended 31 December 2024,
the total fixed cash outflows relating to property assets and other
equipment amounted to €61.3 million (31 December 2023: €53.5
million).
Unwind of
right-of-use assets and release of interest charge
The unwinding of the right-of-use
assets as at 31 December 2024 and the release of the interest on
the lease liabilities as at 31 December 2024 through profit or loss
over the terms of the leases have been disclosed in the following
tables:
|
|
Depreciation of
right-of-use assets
|
|
|
Republic of
Ireland
|
Continental
Europe
|
UK
|
Total
|
|
|
€’000
|
€’000
|
£’000
|
€’000
|
|
During the year 2025
|
16,148
|
4,754
|
12,287
|
35,720
|
|
During the year 2026
|
14,165
|
4,754
|
11,942
|
33,321
|
|
During the year 2027
|
13,689
|
4,754
|
11,712
|
32,568
|
|
During the year 2028
|
13,516
|
4,754
|
11,510
|
32,151
|
|
During the year 2029
|
13,296
|
4,480
|
10,850
|
30,861
|
|
During the years 2030 –
2039
|
121,287
|
44,540
|
103,244
|
290,341
|
|
During the years 2040 –
2049
|
63,889
|
9,650
|
102,546
|
197,211
|
|
From 2050 onwards
|
24,878
|
-
|
68,905
|
107,978
|
|
|
280,868
|
77,686
|
332,996
|
760,151
|
|
|
Interest on lease
liabilities
|
|
|
Republic of
Ireland
|
Continental
Europe
|
UK
|
Total
|
|
|
€’000
|
€’000
|
£’000
|
€’000
|
|
During the year 2025
|
17,181
|
6,256
|
24,442
|
52,914
|
|
During the year 2026
|
16,641
|
6,061
|
24,371
|
52,094
|
|
During the year 2027
|
16,182
|
5,851
|
24,278
|
51,313
|
|
During the year 2028
|
15,684
|
5,624
|
24,153
|
50,437
|
|
During the year 2029
|
15,154
|
5,380
|
24,013
|
49,494
|
|
During the years 2030 –
2039
|
117,821
|
35,397
|
226,057
|
425,845
|
|
During the years 2040 –
2049
|
54,650
|
1,533
|
168,709
|
259,648
|
|
From 2050 onwards
|
9,475
|
-
|
673,879
|
822,180
|
|
|
262,788
|
66,102
|
1,189,902
|
1,763,925
|
Sterling amounts have been converted
using the closing foreign exchange rate of 0.82918 as at 31
December 2024.
The actual depreciation and interest
charge through profit or loss will depend on the composition of the
Group’s lease portfolio in future years and are subject to change,
driven by:
commencement of new
leases;
modifications of existing
leases;
reassessments of lease liabilities
following periodic rent reviews; and
impairments and reversals of previous
impairment charges of right-of-use assets.
Impairment assessments were carried
out on the Group’s CGUs at 31 December 2024. No impairment charge
has been recorded as the recoverable amount was deemed higher than
the carrying amount for all the Group’s CGUs. A reversal of
previous impairment charges of €1.7 million (£1.4 million) relating
to a UK CGU was recognised in profit or loss during the year ended
31 December 2024 (2023: €Nil) (note 10).
Leases of property
assets
The Group leases properties for its
hotel operations and office space. The leases of hotels typically
run for a period of between 25 and 35 years and leases of office
space for 10 years.
Some leases provide for additional
rent payments that are based on a percentage of the revenue/EBITDAR
that the Group generates at the hotel in the period. The Group
sub-leases part of two of its properties to a tenant under an
operating lease.
Variable
lease costs based on revenue
These variable lease costs link
rental payments to hotel cash flows and reduce fixed payments.
Variable lease costs which are considered fixed in substance are
included as part of lease liabilities and not in the following
table.
Variable lease costs based on revenue
for the year ended 31 December 2024 are as follows:
|
|
Variable lease
costs element
|
Estimated impact
on variable lease costs of 5% increase in
revenue/EBITDAR
|
|
|
€’000
|
€’000
|
|
Leases with lease payments based on
revenue
|
2,644
|
506
|
Variable lease costs based on revenue
for the year ended 31 December 2023 are as follows:
|
|
Variable
lease costs element
|
Estimated impact
on variable lease costs of 5% increase in
revenue/EBITDAR
|
|
|
€’000
|
€’000
|
|
Leases with lease payments based on
revenue
|
3,630
|
782
|
Extension
options
As at 31 December 2024, the Group, as
a hotel lessee, has two hotels which each have two 5-year extension
options. The Group assesses at lease commencement whether it is
reasonably certain to exercise the options and reassesses if there
is a significant event or change in circumstances within its
control. At 31 December 2024, the Group has assessed that it is not
reasonably certain that the options will be exercised. The relative
magnitude of optional lease payments to lease payments is as
follows:
|
|
Lease
liabilities recognised (discounted)
|
Potential future
lease payments not included in lease liabilities
(discounted)
|
|
|
€’000
|
€’000
|
|
Hotel leases
|
85,583
|
11,498
|
Termination
options
The Group holds a termination option
in an office space lease. The Group assesses at lease commencement
whether it is reasonably certain not to exercise the option and
reassesses if there is a significant event or change in
circumstances within its control. At 31 December 2024, the Group
has assessed that it is not reasonably certain that the option will
not be exercised. The relative magnitude of optional lease payments
to lease payments is as follows:
|
|
Lease
liabilities recognised (discounted)
|
Potential future
lease payments not included in lease liabilities
(discounted)
|
|
|
€’000
|
€’000
|
|
Office building
|
3,411
|
1,475
|
Leases not
yet commenced to which the lessee is committed
The Group has two agreements for
lease at 31 December 2024 and details of the non-cancellable lease
rentals and other contractual obligations payable under these
agreements are set out hereafter. These represent the minimum
future lease payments (undiscounted) in aggregate that the Group is
required to make under the agreements. An agreement for lease is a
binding agreement between external third parties and the Group to
enter into a lease at a future date. The dates of commencement of
these leases may change based on the hotel opening dates. The
amounts payable may also change slightly if there are any changes
in room numbers delivered through construction.
|
|
At 31
December 2024
|
At 31
December 2023
|
|
|
€’000
|
€’000
|
|
Agreements for
lease
|
|
|
|
Less than one year
|
-
|
9,503
|
|
One to two years
|
613
|
5,745
|
|
Two to three years
|
2,450
|
7,991
|
|
Three to five years
|
12,310
|
16,389
|
|
Five to fifteen years
|
69,307
|
86,181
|
|
Fifteen to twenty five
years
|
75,209
|
92,658
|
|
After twenty five years
|
49,634
|
107,305
|
|
Total future lease
payments
|
209,523
|
325,772
|
Included in the above table at 31
December 2024 are future lease payments for agreements for lease
for Maldron Hotel Croke Park, Dublin and Clayton Hotel Old Broad
Street, London. The lease for Maldron Hotel Croke Park, Dublin has
a term of 35 years and the hotel is expected to open in H2 2026.
The lease for Clayton Hotel Old Broad Street, London has a term of
25 years and the hotel is expected to open in H2 2028.
Other
leases
The Group has applied the short-term
and low-value exemptions available under IFRS 16 where applicable
and recognises lease payments associated with short-term leases or
leases for which the underlying asset is of low-value as an expense
on a straight-line basis over the lease term. Where the exemptions
were not available, right-of-use assets have been recognised with
corresponding lease liabilities.
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Expenses relating to short-term
leases recognised in administrative expenses
|
250
|
174
|
|
Expenses relating to leases of
low-value assets, excluding short-term leases of low-value assets,
recognised in administrative expenses
|
496
|
365
|
|
|
746
|
539
|
For the year ended 31 December 2024,
cash outflows relating to fixtures, fittings and equipment, for
which the Group has availed of the IFRS 16 short-term and low-value
exemptions, amounted to €0.7 million (31 December 2023: €0.5
million).
Group as a
lessor
Lease income from lease contracts in
which the Group acts as lessor is outlined below:
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Operating lease income (note
5)
|
384
|
385
|
The Group leases its investment
property and has classified these leases as operating leases
because they do not transfer substantially all of the risks and
rewards incidental to ownership of these assets to the lessee.
Operating lease income from sub-leasing right-of-use assets for the
year ended 31 December 2024 amounted to €0.2 million (31 December
2023: €0.2 million).
The following table sets out a
maturity analysis of lease payments, showing the undiscounted lease
payments receivable:
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Less than one year
|
309
|
364
|
|
One to two years
|
297
|
303
|
|
Two to three years
|
287
|
303
|
|
Three to four years
|
254
|
262
|
|
Four to five years
|
254
|
248
|
|
More than five years
|
535
|
767
|
|
Total undiscounted
lease payments receivable
|
1,936
|
2,247
|
Sterling amounts have been converted
using the closing foreign exchange rate of 0.82918 as at 31
December 2024 (31 December 2023: 0.86905).
15
Trade and other receivables
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Non-current
assets
|
|
|
|
Other receivables
|
6,495
|
2,328
|
|
Prepayments
|
867
|
4,090
|
|
|
7,362
|
6,418
|
|
|
|
|
|
Current
assets
|
|
|
|
Trade receivables
|
10,846
|
10,830
|
|
Prepayments
|
12,449
|
9,251
|
|
Contract assets
|
3,448
|
4,612
|
|
Accrued income
|
3,599
|
3,069
|
|
Other receivables
|
500
|
500
|
|
|
30,842
|
28,262
|
|
|
|
|
|
Total
|
38,204
|
34,680
|
Non-current
assets
Included in non-current other
receivables at 31 December 2024 is a rent deposit of €1.4 million
paid to the landlord on the sale and leaseback of a hotel property
(31 December 2023: €1.4 million). This deposit is repayable to the
Group at the end of the lease term. Also included is a deposit paid
as part of another hotel property lease contract of €0.9 million
(31 December 2023: €0.9 million) which is interest-bearing and
refundable at the end of the lease term.
During the year, the Group paid a
deposit of €4.2 million for the acquisition of the Radisson Blu
Hotel Dublin Airport. This will be held in other receivables until
the sale is finalised, which is subject to contractual conditions
and regulatory approval.
Included in non-current prepayments
at 31 December 2024 are costs of €0.9 million (31 December 2023:
€4.1 million) associated with future lease agreements for hotels
which are currently being constructed or in planning. Costs
associated with leases which were signed during 2024 were
reclassified to right-of-use assets on lease
commencement.
Current
assets
Trade receivables are subject to the
expected credit loss model in IFRS 9 Financial
Instruments. The Group applies
the IFRS 9 simplified approach to measuring expected credit losses
which uses a lifetime expected loss allowance for all
trade receivables. To measure the expected credit
losses, trade receivables have been grouped based on shared credit
risk characteristics and the number of days past due.
Aged analysis of
trade receivables
|
|
Gross
receivables
|
Expected
credit
loss
|
Impairment
provision
|
Net
receivables
|
|
|
2024
|
Rate
|
2024
|
2024
|
|
|
€’000
|
2024
|
€’000
|
€’000
|
|
Not past due
|
5,338
|
0.0%
|
-
|
5,338
|
|
Past due < 30 days
|
3,155
|
0.0%
|
-
|
3,155
|
|
Past due 30 – 60 days
|
1,171
|
0.0%
|
-
|
1,171
|
|
Past due 60 – 90 days
|
126
|
0.0%
|
-
|
126
|
|
Past due > 90 days
|
1,404
|
24.8%
|
(348)
|
1,056
|
|
|
11,194
|
|
(348)
|
10,846
|
|
|
Gross
receivables
|
Expected
credit
loss
|
Impairment
provision
|
Net
receivables
|
|
|
2023
|
Rate
|
2023
|
2023
|
|
|
€’000
|
2023
|
€’000
|
€’000
|
|
Not past due
|
5,984
|
0.0%
|
-
|
5,984
|
|
Past due < 30 days
|
2,804
|
0.0%
|
-
|
2,804
|
|
Past due 30 – 60 days
|
1,337
|
0.0%
|
-
|
1,337
|
|
Past due 60 – 90 days
|
147
|
0.0%
|
-
|
147
|
|
Past due > 90 days
|
883
|
36.8%
|
(325)
|
558
|
|
|
11,155
|
|
(325)
|
10,830
|
Management does not expect any
significant losses from trade receivables that have not been
provided for as shown above, contract assets, accrued income or
other receivables. Details are included in the credit risk section
in note 25.
16
Inventories
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Goods for resale
|
1,987
|
1,882
|
|
Consumable stores
|
774
|
519
|
|
|
2,761
|
2,401
|
Inventories recognised as cost of
sales during the year amounted to €35.1 million (2023: €33.6
million).
17
Cash and cash equivalents
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Cash at bank and in hand
|
39,575
|
34,173
|
|
|
39,575
|
34,173
|
18
Held for sale assets
On 19 November 2024, the Group
announced that it had exchanged contracts for the sale of Clayton
Whites Hotel, Wexford for €21.0 million. The Group treated the
business unit as held for sale as of this date. Prior to the
reclassification, hotel land and buildings were remeasured in
accordance with the revaluation model, resulting in a fair value
increase of €4.2 million and associated deferred tax liabilities
were remeasured on a realisation basis. The net movement was
recognised in other comprehensive income.
On 9 January 2025, the Group
completed the sale for a cash consideration of €21.0 million. The
net proceeds from the transaction amount to €20.7 million. The
assets held for sale at 31 December 2024 relate to:
|
|
Note
|
2024
€’000
|
|
Property, plant and
equipment
|
13
|
19,742
|
|
Goodwill
|
12
|
550
|
|
Investment property
|
|
425
|
|
Assets held for
sale
|
|
20,717
|
The above divestment is not regarded
as a discontinued operation as it was not considered to be either a
separate major line of business or geographical area of operations.
Separately, the Group completed the disposal of the Maldron Hotel
Wexford (note 13).
19
Capital and reserves
At 31
December 2024
|
|
Number
|
€’000
|
|
Authorised share
capital
|
10,000,000,000
|
100,000
|
|
Ordinary shares of €0.01
each
|
|
|
|
|
|
|
|
|
Number
|
€’000
|
|
Allotted, called-up
and fully paid shares
|
212,872,966
|
2,129
|
|
Ordinary shares of €0.01
each
|
|
|
|
|
|
|
|
Share
premium
|
|
507,365
|
|
|
Number
|
€’000
|
|
Treasury
reserve
|
4,153
|
(19)
|
Capital
reserves
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Capital contribution
|
25,724
|
25,724
|
|
Merger reserve
|
81,264
|
81,264
|
|
Other un-denominated
capital
|
116
|
-
|
|
|
107,104
|
106,998
|
At 31
December 2023
|
|
Number
|
€’000
|
|
Authorised share
capital
|
|
|
|
Ordinary shares of €0.01
each
|
10,000,000,000
|
100,000
|
|
|
|
|
|
|
Number
|
€’000
|
|
Allotted, called-up
and fully paid shares
|
|
|
|
Ordinary shares of €0.01
each
|
223,454,844
|
2,235
|
|
|
|
|
|
Share
premium
|
|
505,079
|
(a) Share
capital
All ordinary shares rank equally with
regard to the Company’s residual assets.
Between January and April 2024, the
Company issued 975,316 shares of €0.01 per share at par, following
the vesting of awards granted as part of the Share Save scheme in
2019 and 2020 (note 8). The
weighted average exercise price at the date of exercise for options
exercised during the year ended 31 December 2024 was €2.35 (2023:
€3.57).
In February 2024, an Employee Benefit
Trust (‘the Trust’) was established to periodically make market
purchases of ordinary shares of the company in order to satisfy
exercises of vested options granted pursuant to the Group’s Long
Term Incentive Plans and the Share Save schemes. During the year
ended 31 December 2024, 1,383,685 shares were purchased by the
Trust. 1,092,261 of these shares were acquired to fulfil the
exercise of vested options under the 2017 Long Term Incentive Plan
award (note 8), while 287,271
shares were used to satisfy the exercise of vested options pursuant
to the 2020 Share Save schemes. The remaining 4,153 shares are held
by the Trust.
In September and October 2024, the
Group announced two share buyback programmes to purchase the
Company’s ordinary shares of €0.01 for an aggregate value
(excluding associated expenses) of up to €55 million (€30 and €25
million). The programmes concluded on 14 October 2024 and 27
January 2025 respectively. During the year ended 31 December 2024,
the Group repurchased 11.6 million (2023: €Nil) ordinary shares
under the programmes on Euronext Dublin at an average price of
€4.20 per share which were subsequently
cancelled.
The 11.6m million ordinary shares
cancelled via the share buyback programmes during the financial
year represent 5.4% of the Company’s total called up share capital.
In January 2025, €6.5 million worth of shares were repurchased,
concluding the second share buyback programme.
(b) Treasury
shares
At 31 December 2024, the Trust held
4,153 of the Company’s own shares (31 December 2023: Nil), which
were acquired at a total cost of €0.02 million (31 December 2023:
€Nil) which is recorded directly in equity under treasury share
reserve.
(c) Capital
reserves
Capital
contribution reserve
As part of a Group reorganisation in
2014, the Company became the ultimate parent entity of the then
existing Group, when it acquired 100% of the issued share capital
of DHGL Limited in exchange for the issue of 9,500 ordinary shares
of €0.01 each. By doing so, it also indirectly acquired the 100%
shareholdings previously held by DHGL Limited in each of its
subsidiaries. As part of that reorganisation, shareholder loan note
obligations (including accrued interest) of DHGL Limited were
assumed by the Company as part of the consideration paid for the
equity shares in DHGL Limited.
The fair value of the Group (as then
headed by DHGL Limited) at that date was estimated at €40.0
million. The fair value of the shareholder loan note obligations
assumed by the Company as part of the acquisition was €29.7 million
and the fair value of the shares issued by the Company in the share
exchange was €10.3 million.
The difference between the carrying
value of the shareholder loan note obligations (€55.4 million)
prior to the reorganisation and their fair value (€29.7 million) at
that date represents a contribution from shareholders of €25.7
million which has been credited to a separate capital contribution
reserve. Subsequently, all shareholder loan note obligations were
settled in 2014, in exchange for shares issued in the
Company.
Merger
reserve
The insertion of Dalata Hotel Group
plc as the new holding company of DHGL Limited in 2014 did not meet
the definition of a business combination under IFRS 3
Business
Combinations, and, as a
consequence, the acquired assets and liabilities of DHGL Limited
and its subsidiaries continued to be carried in the consolidated
financial statements at their respective carrying values as at the
date of the reorganisation. The consolidated financial statements
of Dalata Hotel Group plc were prepared on the basis that the
Company is a continuation of DHGL Limited, reflecting the substance
of the arrangement.
As a consequence, a merger reserve of
€10.3 million (negative) arose in the consolidated statement of
financial position. This represents the difference between the
consideration paid for DHGL Limited in the form of shares of the
Company, and the issued share capital of DHGL Limited at the date
of the reorganisation which was a nominal amount of €95.
In September 2020, the Company
completed a placing of new ordinary shares of €0.01 each in the
share capital of the Company. 37.0 million ordinary shares were
issued at €2.55 each which raised €92.0 million after costs of €2.4 million. The Group
availed of merger relief to simplify future distributions and as a
result, €91.6 million was recognised in the merger reserve being
the difference between the nominal value of each share (€0.01 each)
and the amount paid (€2.55 per share) after deducting costs of the
share placing of €2.4 million.
Other
un-denominated capital
The reserve represents the nominal
value of the shares that were repurchased and cancelled during the
financial year and serves to maintain the Company’s capital
structure. As noted above, the Company repurchased 11.6 million
shares with a nominal value of €0.01 per share resulting in the
transfer of €0.1 million (2023: €Nil) to the other un-denominated
capital.
(d)
Share-based payment reserve
The share-based payment reserve
comprises amounts equivalent to the cumulative cost of awards by
the Group under equity-settled share-based payment arrangements,
being the Group’s Long Term Incentive Plans and the Share Save
schemes. On vesting, the cost of awards previously recognised in
the share-based payments reserve is transferred to retained
earnings. Details of the share awards, in addition to awards which
vested during the current year, are disclosed in (note
8)
and in the Remuneration Committee
report.
(e) Hedging
reserve
The hedging reserve comprises the
effective portion of the cumulative net change in the fair value of
hedging instruments used in cash flow hedges, net of deferred
tax.
(f)
Revaluation reserve
The revaluation reserve relates to
the revaluation of land and buildings in line with the Group’s
policy to fair value these assets at each reporting date
(note 13), net of deferred
tax.
(g)
Translation reserve
The translation reserve comprises all
foreign currency exchange differences arising from the translation
of the financial statements of foreign operations, as well as the
effective portion of any foreign currency differences arising from
hedges of a net investment in a foreign operation (note
25).
(h)
Dividends
A final dividend for the year ended
31 December 2023 of 8.0 cents was paid on 1 May 2024 on the
ordinary shares in Dalata Hotel Group plc and amounted to €18.0
million (2023: €Nil).
An interim dividend for 2024 of 4.1
cents was paid on 4 October 2024 on the ordinary shares in Dalata
Hotel Group plc and amounted to €9.1 million (2023: €8.9
million).
On 5 March 2025, the Board proposed a
final dividend of 8.4 cents per share. This proposed dividend is
subject to approval by the shareholders at the Annual General
Meeting. The payment date for the final dividend will be 8 May 2025
to shareholders registered on the record date 4 April 2025. Based
on the expected number of shares that will be in issue on this
date, the amount of the proposed dividend will be €17.8 million
These consolidated financial statements do not reflect this
dividend.
20
Trade and other payables
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Non-current
liabilities
|
|
|
|
Other payables
|
19
|
348
|
|
|
19
|
348
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade payables
|
16,110
|
16,724
|
|
Accruals
|
45,906
|
45,839
|
|
Contract liabilities
|
15,244
|
13,459
|
|
Value added tax
|
7,396
|
4,957
|
|
Payroll taxes
|
3,788
|
3,641
|
|
Tourist taxes
|
208
|
1,429
|
|
|
88,652
|
86,049
|
|
|
|
|
|
Total
|
88,671
|
86,397
|
Accruals at 31 December 2024 include
€5.4 million related to amounts not yet invoiced for capital
expenditure and for costs related to entering new leases and
agreements for lease (31 December 2023: €6.2 million).
21
Provision for liabilities
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Non-current
liabilities
|
|
|
|
Insurance provision
|
5,708
|
6,656
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Insurance provision
|
2,340
|
1,955
|
|
|
8,048
|
8,611
|
The reconciliation of the movement in
the provision during the year is as follows:
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
At 1 January
|
8,611
|
9,179
|
|
Provisions made during the year –
charged to profit or loss
|
1,500
|
2,500
|
|
Utilised during the year
|
(1,219)
|
(1,815)
|
|
Impact of discounting – credited to
profit or loss
|
146
|
(326)
|
|
Reversed to profit or loss during the
year
|
(990)
|
(927)
|
|
At 31
December
|
8,048
|
8,611
|
This provision relates to actual and
potential obligations arising from the Group’s insurance
arrangements where the Group is self-insured. The Group has third
party insurance cover above specific limits for individual claims
and has an overall maximum aggregate payable for all claims in any
one year. The amount provided is principally based on projected
settlements as determined by external loss adjusters. The provision
also includes an estimate for claims incurred but not yet reported
and incurred but not enough reported.
The utilisation of the provision is
dependent on the timing of settlement of the outstanding claims.
The Group expects the majority of the insurance provision will be
utilised within five years of the period end date, however, due to
the nature of the provision, there is a level of uncertainty in the
timing of settlement as the Group generally cannot precisely
determine the extent and duration of the claim process. The
provision has been discounted to reflect the time value of
money.
The self-insurance programme
commenced in July 2015 and increasing levels of claims data is
becoming available. Claim provisions are assessed in light of
claims experience and amended accordingly to ensure provisions
reflect recent experience and trends. There has been a reversal of
€1.0 million in the year ended 31 December 2024 of provisions made
in prior periods (2023: €0.9 million).
22
Loans and borrowings
Non-current
liabilities
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Bank loans
|
147,384
|
254,387
|
|
Private placement notes
|
124,000
|
-
|
|
Total bank loans
and private placement notes
|
271,384
|
254,387
|
The amortised cost of bank loans at
31 December 2024 is €147.4 million (31 December 2023: €254.4
million). The drawn loan facility at that date is €147.3 million
(2023: €258.7 million) comprised of a €100 million euro green term
loan and revolving credit facility loans of £18.5 million (€22.3
million) in sterling denominated and €25.0 million in euro
denominated revolving credit facilities. The undrawn bank loan
facilities at 31 December 2024 is €325.0 million (2023: €249.3
million).
On 9 October 2024, the Group
completed a refinancing of its existing banking facilities to
provide a €475 million multicurrency loan facility consisting of a
€100 million green term loan and a €375 million revolving credit
facility for a five-year term to 9 October 2029, with two options
to extend by a year. The Group also completed its inaugural
issuance of €124.7 million of green loan notes to institutional
investors for terms of five and seven years. The new facilities
replace the original multicurrency loan facility consisting of a
£176.5 million term loan facility and a €304.9 million revolving
credit facility due to mature in October 2025.
In line with IFRS 9 derecognition
criteria, the Group performed the 10 percent test (referred to
in note 1 (xxv)
derecognition of financial liabilities accounting policy) to assess
whether the discounted present value of the cash flows under the
new terms of the new banking facility, discounted using the
original effective interest rate, including any lender fees paid,
were at least 10 percent different from the discounted present
value of the remaining cash flows of the original financial
liability. As the cash flows were more than 10 percent different,
the financial liabilities were deemed to be substantially modified
and as a result, the original financial liabilities were
derecognised, with the difference between the amortised cost of the
original facility and the consideration paid on repayment,
recognised as a modification loss in profit or loss. Costs of €4.8
million incurred in relation to the refinanced banking facility
were also recognised as part of this modification loss in profit or
loss. The total modification loss recognised in profit or loss was
€7.5 million for the year ended 31 December 2024.
In October 2024, a total of €62.0
million of loan notes denominated in euro were issued by the Group
(€22.0 million for a five year term and €40.0 million for a seven
year term). At the same time, the Group also issued loan notes
denominated in sterling of £52.5 million (£25.0 million for a five
year term and £27.5 million for a seven year term). The private
placement loan notes were initially recognised at fair value less
directly related costs of €1.3 million and are recognised on an
amortised cost basis thereafter.
The Group entered into four-year
interest rate swaps to hedge the variable interest rate on the
€100.0 million euro term loan (note 23).
At 31 December 2024, property, plant
and equipment with a carrying amount of €1,054.1 million (2023:
€1,368.3 million) were pledged as security for bank loans and
private placement notes (note 13).
Reconciliation of
movements of liabilities to cash flows arising from financing
activities for the year ended 31 December 2024.
|
|
Liabilities
|
Equity
|
|
|
|
Bank
loans and private placement notes
|
Lease
liabilities
|
Trade
and other payables
|
Derivatives
(net)
|
Share
capital
|
|
Share
premium
|
Capital
reserves
|
Treasury share
reserve
|
Retained
earnings
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Balance as at 31
December 2023
|
254,387
|
698,598
|
86,397
|
(6,521)
|
2,235
|
505,079
|
106,988
|
-
|
316,328
|
1,963,491
|
|
Changes from
financing cash flows
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from vesting of share awards
and options
|
-
|
-
|
-
|
-
|
10
|
2,286
|
-
|
-
|
-
|
2,296
|
|
Other net interest and finance costs
paid
|
(16,461)
|
-
|
(5,822)
|
7,688
|
-
|
-
|
-
|
-
|
-
|
(15,595)
|
|
Receipt of bank loans
|
390,204
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
390,204
|
|
Repayment of bank loans
|
(510,818)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(510,818)
|
|
Issuance of private placement loan
notes net of costs paid
|
124,694
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
124,694
|
|
Interest paid on lease
liabilities
|
-
|
(49,487)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(49,487)
|
|
Repayment of lease
liabilities
|
-
|
(11,767)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(11,767)
|
|
Purchase of treasury
shares
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(5,604)
|
-
|
(5,604)
|
|
Purchase of own shares as part of buy
back scheme
|
-
|
-
|
-
|
-
|
(116)
|
-
|
(48,567)
|
-
|
-
|
(48,683)
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(27,115)
|
(27,115)
|
|
Total changes from
financing cash flows
|
(12,381)
|
(61,254)
|
(5,822)
|
7,688
|
(106)
|
2,286
|
(48,567)
|
(5,604)
|
(27,115)
|
(150,875)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability-related
other changes
|
|
|
|
|
|
|
|
|
|
|
|
The effect of changes in foreign
exchange rates
|
9,758
|
16,583
|
1,514
|
-
|
-
|
-
|
-
|
-
|
-
|
27,855
|
|
Changes in fair value
|
-
|
-
|
-
|
(923)
|
-
|
-
|
-
|
-
|
-
|
(923)
|
|
Interest expense on bank loans and
private placement notes
|
18,239
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
18,239
|
|
Other net finance costs
movements
|
1,381
|
-
|
7,511
|
-
|
-
|
-
|
-
|
-
|
-
|
8,892
|
|
Other movements in trade and other
payables
|
-
|
-
|
(929)
|
-
|
-
|
-
|
-
|
-
|
-
|
(929)
|
|
Additions to lease liabilities during
the year
|
-
|
61,363
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
61,363
|
|
Interest on lease
liabilities
|
-
|
49,487
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
49,487
|
|
Remeasurement of lease
liabilities
|
-
|
13,781
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
13,781
|
|
Total
liability-related other changes
|
29,378
|
141,214
|
8,096
|
(923)
|
-
|
-
|
-
|
-
|
-
|
177,765
|
|
Total
equity-related other changes
|
-
|
-
|
-
|
-
|
-
|
-
|
48,683
|
5,585
|
30,944
|
85,212
|
|
Balance as at 31
December 2024
|
271,384
|
778,558
|
88,671
|
244
|
2,129
|
507,365
|
107,104
|
(19)
|
320,157
|
2,075,593
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
movements of liabilities to cash flows arising from financing
activities for the year ended 31 December 2023.
|
|
Liabilities
|
Equity
|
|
|
Bank
loans and private placement notes
|
Lease
liabilities
|
Trade
and other payables
|
Derivatives
(net)
|
Share
capital
|
Share
premium
|
Retained
earnings
|
Total
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Balance as at 31
December 2022
|
193,488
|
651,791
|
119,057
|
(11,717)
|
2,229
|
504,910
|
232,541
|
1,692,299
|
|
Changes from
financing cash flows
|
|
|
|
|
|
|
|
|
|
Vesting of share awards and
options
|
-
|
-
|
-
|
-
|
6
|
169
|
-
|
175
|
|
Other interest and finance costs
paid
|
(14,414)
|
-
|
(1,261)
|
6,949
|
-
|
-
|
-
|
(8,726)
|
|
Receipt of bank loans
|
120,648
|
-
|
-
|
-
|
-
|
-
|
-
|
120,648
|
|
Repayment of bank loans
|
(64,374)
|
-
|
-
|
-
|
-
|
-
|
-
|
(64,374)
|
|
Interest on lease
liabilities
|
-
|
(42,751)
|
-
|
-
|
-
|
-
|
-
|
(42,751)
|
|
Repayment of lease
liabilities
|
-
|
(10,747)
|
-
|
-
|
-
|
-
|
-
|
(10,747)
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,939)
|
(8,939)
|
|
Total changes from
financing cash flows
|
41,860
|
(53,498)
|
(1,261)
|
6,949
|
6
|
169
|
(8,939)
|
(14,714)
|
|
|
|
|
|
|
|
|
|
|
|
Liability-related
other changes
|
|
|
|
|
|
|
|
|
|
The effect of changes in foreign
exchange rates
|
3,448
|
5,989
|
(480)
|
-
|
-
|
-
|
-
|
8,957
|
|
Changes in fair value
|
-
|
-
|
-
|
(1,753)
|
-
|
-
|
-
|
(1,753)
|
|
Interest expense on bank loans and
private placement notes
|
15,665
|
-
|
-
|
-
|
-
|
-
|
-
|
15,665
|
|
Other movements in bank loans and
private placement notes
|
(74)
|
-
|
1,152
|
-
|
-
|
-
|
-
|
1,078
|
|
Other movements in trade and other
payables
|
-
|
-
|
(32,071)
|
-
|
-
|
-
|
-
|
(32,071)
|
|
Additions to lease liabilities during
the year
|
-
|
375
|
-
|
-
|
-
|
-
|
-
|
375
|
|
Acquisition of lease liabilities
through business combinations
|
-
|
43,382
|
-
|
-
|
-
|
-
|
-
|
43,382
|
|
Interest on lease
liabilities
|
-
|
42,751
|
-
|
-
|
-
|
-
|
-
|
42,751
|
|
Remeasurement of lease
liabilities
|
-
|
7,808
|
-
|
-
|
-
|
-
|
-
|
7,808
|
|
Total
liability-related other changes
|
19,039
|
100,305
|
(31,399)
|
(1,753)
|
-
|
-
|
-
|
86,192
|
|
Total
equity-related other changes
|
-
|
-
|
-
|
-
|
-
|
-
|
92,726
|
92,726
|
|
Balance as at 31
December 2023
|
254,387
|
698,598
|
86,397
|
(6,521)
|
2,235
|
505,079
|
316,328
|
1,856,503
|
Net debt is calculated in line with
external borrowing covenants and includes private placement notes
issued and external bank loans drawn and owed to the banking club
as at 31 December 2024 (rather than the amortised cost of the bank
loans and private placement notes) less cash and cash equivalents.
The below table also includes a reconciliation to net debt and
lease liabilities.
Reconciliation of
movement in net debt for the year ended 31 December 2024
|
|
Sterling bank loan
facility
|
Euro
bank loan facility
|
Sterling
private
placement
notes
|
Euro
private placement notes
|
Total
|
|
|
£’000
|
€’000
|
€’000
|
£’000
|
€’000
|
€’000
|
€’000
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
221,367
|
254,723
|
4,000
|
-
|
-
|
-
|
258,723
|
|
Cash
flows
|
|
|
|
|
|
|
|
|
Facilities drawn down
|
128,657
|
153,204
|
237,000
|
-
|
-
|
-
|
390,204
|
|
Bank loans repaid
|
(331,524)
|
(394,818)
|
(116,000)
|
-
|
-
|
-
|
(510,818)
|
|
Loan notes issued
|
-
|
-
|
-
|
52,500
|
62,694
|
62,000
|
124,694
|
|
Non-cash
changes
|
|
|
|
|
|
|
|
|
Effect of foreign exchange
movements
|
-
|
9,202
|
-
|
-
|
622
|
-
|
9,824
|
|
At 31 December
2024
|
18,500
|
22,311
|
125,000
|
52,500
|
63,316
|
62,000
|
272,627
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
|
|
|
|
|
|
34,173
|
|
Movement during the year
|
|
|
|
|
|
|
5,402
|
|
At 31 December
2024
|
|
|
|
|
|
|
39,575
|
|
Net debt at 31
December 2024
|
|
|
|
|
|
|
233,052
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net debt and lease liabilities
|
|
|
|
|
|
|
|
|
Net debt at 31
December 2024
|
|
|
|
|
|
|
233,052
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities as at 1 January
2024
|
|
|
|
|
|
|
698,598
|
|
Additions
|
|
|
|
|
|
|
61,363
|
|
Interest on lease
liabilities
|
|
|
|
|
|
|
49,487
|
|
Lease payments
|
|
|
|
|
|
|
(61,254)
|
|
Remeasurement of lease
liabilities
|
|
|
|
|
|
|
13,781
|
|
Translation adjustment
|
|
|
|
|
|
|
16,583
|
|
Lease liabilities
at 31 December 2024 (note 14)
|
|
|
|
|
|
|
778,558
|
|
Net debt and lease
liabilities at 31 December 2024
|
|
|
|
|
|
|
1,011,610
|
Reconciliation of
movement in net debt for the year ended 31 December 2023
|
|
Sterling
facility
|
Sterling
facility
|
Euro
facility
|
Total
|
|
|
£’000
|
€’000
|
€’000
|
€’000
|
|
Bank loans – drawn
amounts
|
|
|
|
|
|
At 1 January 2023
|
176,500
|
199,001
|
-
|
199,001
|
|
Cash
flows
|
|
|
|
|
|
Facilities drawn down
|
72,882
|
84,648
|
36,000
|
120,648
|
|
Loan repayments
|
(28,015)
|
(32,374)
|
(32,000)
|
(64,374)
|
|
Non-cash
changes
|
|
|
|
|
|
Effect of foreign exchange
movements
|
-
|
3,448
|
-
|
3,448
|
|
At 31 December
2023
|
221,367
|
254,723
|
4,000
|
258,723
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
At 1 January 2023
|
|
|
|
91,320
|
|
Movement during the year
|
|
|
|
(57,147)
|
|
At 31 December
2023
|
|
|
|
34,173
|
|
Net debt at 31
December 2023
|
|
|
|
224,550
|
|
|
|
|
|
|
|
Reconciliation of
net debt and lease liabilities
|
|
|
|
|
|
Net debt at 31
December 2023
|
|
|
|
224,550
|
|
|
|
|
|
|
|
Lease liabilities as at 1 January
2023
|
|
|
|
651,791
|
|
Acquisitions through business
combinations
|
|
|
|
43,382
|
|
Additions
|
|
|
|
375
|
|
Interest on lease
liabilities
|
|
|
|
42,751
|
|
Lease payments
|
|
|
|
(53,498)
|
|
Remeasurement of lease
liabilities
|
|
|
|
7,808
|
|
Translation adjustment
|
|
|
|
5,989
|
|
Lease liabilities
at 31 December 2023 (note 14)
|
|
|
|
698,598
|
|
Net debt and lease
liabilities at 31 December 2023
|
|
|
|
923,148
|
23
Derivatives
The Group has entered into interest
rate swaps with a number of financial institutions in order to
manage the interest rate risks arising from the Group’s borrowings
(note 22). Interest rate swaps
are employed by the Group to partially convert the Group’s bank
loans from floating to fixed interest rates.
In October 2024, as a result of the
Group’s refinancing, the Group entered into interest rate swaps to
hedge the variable interest rate on its new €100.0 million euro
term loan for a four year period to 9 October 2028. The weighted
average fixed interest rate is 2.18%.
During the year ended 31 December
2024, the Group issued €62.0 million of euro private placement loan
notes and £52.2 million sterling private placement loan notes.
Interest rates cannot vary on the private placement loan notes
except where the Group's Net Debt to EBITDA after rent, calculated
in line with external borrowing covenants exceeds certain ratchet
levels, at which point varying premiums are added to the coupon
rate depending on the ratchet level. Consequently, no hedging was
put in place.
At 31 December 2023 and up to 8
October 2024, the Group had interest rate swaps which hedged the
SONIA benchmark rate on the previously held sterling term
denominated borrowings of £176.5 million, which fixed the SONIA
benchmark rate between 0.95% and 0.96%. These swaps matured in
October 2024.
At 31 December 2024, the interest
rate swaps cover 100% of the Group’s term euro denominated
borrowings for the period to 9 October 2028. The final year of the
term debt, to 9 October 2029, is currently unhedged. All
derivatives have been designated as hedging instruments for the
purposes of IFRS 9. Hedging accounting has been applied and is
fully effective at both inception and 31 December 2024.
Fair
value
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Non-current
liabilities
|
|
|
|
Derivative liabilities
|
(244)
|
-
|
|
|
|
|
|
Current
assets
|
|
|
|
Derivative assets
|
-
|
6,521
|
|
Total derivative
(liabilities) / assets
|
(244)
|
6,521
|
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Included in other
comprehensive income
|
|
|
|
Fair value gain on interest rate
swaps
|
923
|
1,753
|
|
Reclassified to profit or loss
(note 6)
|
(7,688)
|
(6,949)
|
|
|
(6,765)
|
(5,196)
|
The amount reclassified to profit or
loss primarily represents the additional interest received by the
Group as a result of the variable interest rates being higher than
the swap rates.
24
Deferred tax
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
|
|
|
|
Deferred tax assets
|
33,100
|
24,136
|
|
Deferred tax liabilities
|
(92,763)
|
(84,441)
|
|
Net deferred tax
liabilities
|
(59,663)
|
(60,305)
|
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Movements in
year
|
|
|
|
At 1 January – net
liability
|
(60,305)
|
(49,751)
|
|
Credit/(charge) for year – to profit
or loss (note 9)
|
557
|
(460)
|
|
Movement for year – to
equity
|
(1,822)
|
(9,152)
|
|
Realisation of tax charge associated
with hotel disposal – to equity
|
1,907
|
-
|
|
Acquired net deferred tax
liabilities
|
-
|
(942)
|
|
At 31 December –
net liability
|
(59,663)
|
(60,305)
|
The majority of the deferred tax
liabilities result from the Group’s policy of ongoing revaluation
of land and buildings. Where the carrying value of a property in
the financial statements is greater than its tax base cost, the
Group recognises a deferred tax liability. This is calculated using
applicable Irish and UK corporation tax rates. The use of these
rates, in line with the applicable accounting standards, reflects
the intention of the Group to use these assets for ongoing trading
purposes. Where the Group disposes of a property or holds a
property for sale, the actual tax liability is calculated with
reference to rates for capital gains on commercial
property.
The net deferred tax liabilities have
increased from €84.4 million at 31 December 2023 to €92.8 million
at 31 December 2024. This relates primarily to an increase in
taxable gains recognised on properties and an increase in temporary
differences between the net book value and tax written down value
of fixed assets.
A deferred tax asset of €25.0 million
(2023: €18.1 million) has been recognised in respect of cumulative
tax losses and interest carried forward at 31 December 2024 of
€100.0 million (31 December 2023: €73.7 million). The tax losses
can be carried forward indefinitely for offset against future
taxable profits and cannot be carried back for offset against
profits earned in earlier periods.
The increase in the deferred tax
asset recognised on tax losses and interest carried forward from
€18.1 million at 31 December 2023 to €25.0 million at 31 December
2024, relates to the increase in foreign tax losses and interest
recognised during the year ended 31 December 2024 partially offset
by losses utilised in Ireland and the UK.
Included within the €100.0 million
tax losses and interest carried forward at 31 December 2024, is a
balance of €40.6 million (31 December 2023: €30.8 million) relating
to interest expenses carried forward in the UK. In the UK, there is
a limit on corporation tax deductions taken each year for interest
expense incurred. The unused interest expense carried forward by
the UK Group companies at 31 December 2024 can be carried forward
indefinitely and offset against future taxable profits.
A deferred tax asset has been
recognised in respect of Irish and foreign tax losses and interest,
to the extent that it is probable that, after the carry back of tax
losses to earlier periods, there will be sufficient taxable profits
in future periods to utilise the carried forward tax losses and
interest.
In considering the available evidence
to support the recognition of the deferred tax asset, the Group
takes into consideration the impact of both positive and negative
evidence including historical financial performance, projections of
future taxable income and the enacted tax legislation.
In preparing forecasts to determine
future taxable profits, there are a number of positive factors
underpinning the recoverability of the deferred tax
assets:
Prior to the Covid-19 pandemic, the
Group displayed a history of profit growth every year. When normal
trading resumed in 2022 the Group returned to profitability and
currently forecasts that taxable profits will continue to be earned
in future years against which losses can be offset.
The Group is confident that it is
well positioned to take advantage of opportunities that will arise
during 2025 and into the future, including the opening of a large
pipeline of new hotels which will contribute particularly to the
utilisation of UK tax losses, which can be carried forward and
utilised on a group basis. The Group added four hotels in the UK in
2024. The Group has two new hotels in the pipeline in the UK, which
will contribute to future growth.
The absence of expiry dates for
carrying forward foreign and Irish tax losses.
The Group also considered the
relevant negative evidence in determining the recoverability of
deferred tax assets:
The quantum of profits required to be
earned to utilise the tax losses carried forward; and
Forecasts of future taxable
profitability are subject to inherent uncertainty which is
heightened due to the ongoing impact of operating cost increases,
in particular payroll costs, and external geopolitical and economic
factors outside of the Group’s control.
Based on the Group’s financial
projections, the deferred tax asset of €25.0 million recognised in
respect of tax losses and interest expense carried forward of
€100.0 million is estimated to be recovered in full by the year
ending 31 December 2030, with the majority being recovered by the
end of the year ending 31 December 2028.
The total tax losses on which
deferred tax is not recognised at 31 December 2024 is €15.1 million
(2023: €9.1 million). The tax effect of these unrecognised tax
losses at 31 December 2024 is €3.9 million (2023: €2.3 million).
These specific losses are not permitted to be group relieved and
there is uncertainty over sufficient future profits in the
foreseeable future arising in the respective Group companies to
utilise the losses not recognised.
Deferred tax arises from temporary
differences relating to:
|
|
Net
balance at 1 January
|
Recognised in
profit or loss
|
Recognised in
equity
|
Realisation of tax
charge associated with hotel disposal
|
Net
deferred tax
|
Deferred tax
assets
|
Deferred tax
liabilities
|
|
|
2024
|
2024
|
2024
|
2024
|
2024
|
2024
|
2024
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Property, plant and
equipment
|
(77,910)
|
(7,706)
|
(3,730)
|
1,907
|
(87,439)
|
961
|
(88,400)
|
|
Leases
|
1,140
|
837
|
-
|
-
|
1,977
|
60,982
|
(59,005)
|
|
Tax losses and interest carried
forward
|
18,095
|
6,878
|
-
|
-
|
24,973
|
24,973
|
-
|
|
Hedging reserve
|
(1,630)
|
-
|
1,660
|
-
|
30
|
30
|
-
|
|
Share Based Payment
Reserve
|
-
|
548
|
248
|
-
|
796
|
796
|
-
|
|
Deferred tax
(liabilities)/assets
|
(60,305)
|
557
|
(1,822)
|
1,907
|
(59,663)
|
87,742
|
(147,405)
|
|
Offsetting of temporary differences
related to ROU assets and lease liabilities on individual entity
basis
|
-
|
-
|
-
|
-
|
-
|
(54,642)
|
54,642
|
|
Net deferred tax (liabilities)/assets
per statement of financial position
|
(60,305)
|
557
|
(1,822)
|
1,907
|
(59,663)
|
33,100
|
(92,763)
|
|
|
Net
balance at 1 January
|
Recognised in
profit or loss
|
Recognised in
equity
|
Acquired net
deferred tax liabilities
|
Net
deferred tax
|
Deferred tax
assets
|
Deferred tax
liabilities
|
|
|
2023
|
2023
|
2023
|
2023
|
2023
|
2023
|
2023
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Property, plant and
equipment
|
(63,563)
|
(2,954)
|
(10,451)
|
(942)
|
(77,910)
|
1,081
|
(78,991)
|
|
Leases
|
(969)
|
2,109
|
-
|
-
|
1,140
|
62,243
|
(61,103)
|
|
Tax losses and interest carried
forward
|
17,710
|
385
|
-
|
-
|
18,095
|
18,095
|
-
|
|
Hedging reserve
|
(2,929)
|
-
|
1,299
|
-
|
(1,630)
|
-
|
(1,630)
|
|
Deferred tax
(liabilities)/assets
|
(49,751)
|
(460)
|
(9,152)
|
(942)
|
(60,305)
|
81,419
|
(141,724)
|
|
Offsetting of temporary differences
related to ROU assets and lease liabilities on individual entity
basis
|
-
|
-
|
-
|
-
|
-
|
(57,283)
|
57,283
|
|
Net deferred tax (liabilities)/assets
per statement of financial position
|
(49,751)
|
(460)
|
(9,152)
|
(942)
|
(60,305)
|
24,136
|
(84,441)
|
The Group has multiple legal entities
across the UK and Ireland that will not settle current tax
liabilities and assets on a net basis and their assets and
liabilities will not be realised on a net basis. Therefore,
deferred tax assets and liabilities are recognised on an individual
entity basis and are not offset on a Group or jurisdictional
basis.
IAS 12 requires separate presentation
of deferred tax assets and liabilities arising on right-of-use
assets and corresponding lease liabilities recognised under IFRS
16. Such deferred tax assets and liabilities are presented
separately in the table above. The deferred tax assets and
liabilities related to leases are offset on an individual entity
basis and presented net in the statement of financial
position.
25
Financial instruments and risk management
Risk
exposures
The Group is exposed to various
financial risks arising in the normal course of business. Its
financial risk exposures are predominantly related to the
creditworthiness of counterparties and risks relating to changes in
interest rates and foreign currency exchange rates.
The Group uses financial instruments
throughout its business: bank loans, private placement notes and
cash and cash equivalents are used to finance the Group’s
operations; trade and other receivables, trade and other payables
and accruals arise directly from operations; and derivatives are
used to manage interest rate risks and to achieve a desired profile
of borrowings. The Group creates a net investment hedge with bank
loans and private placement notes to hedge the foreign exchange
risk from investments in certain UK operations. The Group does not
trade in financial instruments.
The following tables show the
carrying amount of Group financial assets and liabilities including
their values in the fair value hierarchy for the year ended 31
December 2024. The tables do not include fair value information for
financial assets and financial liabilities not measured at fair
value if the carrying amount is a reasonable approximation of fair
value. A fair value disclosure for lease liabilities is not
required.
|
|
Financial assets
measured at fair value
|
Financial assets
measured at amortised cost
|
Total
carrying amount
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
|
2024
|
2024
|
2024
|
2024
|
2024
|
2024
|
2024
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Financial
assets
|
|
|
|
|
|
|
|
|
Trade and other receivables excluding
prepayments (note 15)
|
-
|
24,888
|
24,888
|
|
|
|
|
|
Cash at bank and in hand (note
17)
|
-
|
39,575
|
39,575
|
|
|
|
|
|
|
-
|
64,463
|
64,463
|
|
|
|
|
|
|
Financial
liabilities measured at
fair
value
|
Financial
liabilities measured at amortised cost
|
Total
carrying amount
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
|
2024
|
2024
|
2024
|
2024
|
2024
|
2024
|
2024
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Financial
liabilities
|
|
|
|
|
|
|
|
|
Derivatives (note
23) - hedging instruments
|
(244)
|
-
|
(244)
|
-
|
(244)
|
-
|
(244)
|
|
Bank loans (note
22)
|
-
|
(147,384)
|
(147,384)
|
-
|
(147,384)
|
-
|
(147,384)
|
|
Private placement notes (note
22)
|
-
|
(124,000)
|
(124,000)
|
-
|
(124,000)
|
-
|
(124,000)
|
|
Trade and other payables and accruals
(note 20)
|
-
|
(62,035)
|
(62,035)
|
|
|
|
|
|
|
(244)
|
(333,419)
|
(333,663)
|
|
|
|
|
The following tables show the
carrying amount of Group financial assets and liabilities including
their values in the fair value hierarchy for the year ended 31
December 2023. The tables do not include fair value information for
financial assets and financial liabilities not measured at fair
value if the carrying amount is a reasonable approximation of fair
value. A fair value disclosure for lease liabilities is not
required.
|
|
Financial assets
measured at fair value
|
Financial assets
measured at amortised cost
|
Total
carrying amount
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
|
2023
|
2023
|
2023
|
2023
|
2023
|
2023
|
2023
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Financial
assets
|
|
|
|
|
|
|
|
|
Derivatives (note
23) - hedging instruments
|
6,521
|
-
|
6,521
|
|
6,521
|
|
6,521
|
|
Trade and other receivables excluding
prepayments (note 15)
|
-
|
21,339
|
21,339
|
|
|
|
|
|
Cash at bank and in hand (note
17)
|
-
|
34,173
|
34,173
|
|
|
|
|
|
|
6,521
|
55,512
|
62,033
|
|
|
|
|
|
|
Financial
liabilities measured at
fair
value
|
Financial
liabilities measured at amortised cost
|
Total
carrying amount
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
|
2023
|
2023
|
2023
|
2023
|
2023
|
2023
|
2023
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Financial
liabilities
|
|
|
|
|
|
|
|
|
Bank loans (note
22)
|
-
|
(254,387)
|
(254,387)
|
|
(254,387)
|
|
(254,387)
|
|
Trade and other payables and accruals
(note 20)
|
-
|
(62,911)
|
(62,911)
|
|
|
|
|
|
|
-
|
(317,298)
|
(317,298)
|
|
|
|
|
Fair value
hierarchy
The Group measures the fair value of
financial instruments based on the degree to which inputs to the
fair value measurements are observable and the significance of the
inputs to the fair value measurements. Financial instruments are
categorised by the type of valuation method used. The valuation
methods are as follows:
Level 1: Quoted prices (unadjusted)
in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted
prices included in Level 1 that are observable for the financial
instrument, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
Level 3: Inputs for the financial
instrument that are not based on observable market data
(unobservable inputs).
The Group’s policy is to recognise
any transfers between levels of the fair value hierarchy as of the
end of the reporting period during which the transfer occurred.
During the year ended 31 December 2024, there were no
reclassifications of financial instruments and no transfers between
levels of the fair value hierarchy used in measuring the fair value
of financial instruments.
Estimation
of fair values
The principal methods and assumptions
used in estimating the fair values of financial assets and
liabilities are explained hereafter.
Cash at bank
and in hand
For cash at bank and in hand, the
carrying value is deemed to reflect a reasonable approximation of
fair value.
Derivatives
Discounted cash flow analyses have
been used to determine the fair value of the interest rate swaps,
taking into account current market inputs and rates (Level
2).
Receivables/payables
For the receivables and payables with
a remaining term of less than one year or on demand balances, the
carrying value net of impairment provision, where appropriate, is a
reasonable approximation of fair value. The non-current receivables
and payables carrying value is a reasonable approximation of fair
value.
Bank loans
and private placement notes
For bank loans and private placement
notes, the fair value was calculated based on the present value of
the expected future principal and interest cash flows discounted at
interest rates effective at the reporting date. The carrying value
of floating rate interest-bearing bank loans is considered to be a
reasonable approximation of fair value. There is no material
difference between margins available in the market at year end and
the margins that the Group was paying at the year end.
(a) Credit
risk
Exposure to
credit risk
Credit risk is the risk of financial
loss to the Group arising from granting credit to customers and
from investing cash and cash equivalents with banks and financial
institutions.
Trade and
other receivables
The Group’s exposure to credit risk
is influenced mainly by the individual characteristics of each
customer. The Group is due €0.5 million (2023: €0.5 million) from a
key institutional landlord under a contractual agreement where the
landlord reimburses the Group for certain amounts spent on capital
expenditure in that specific property. Non-current receivables
include rent deposits of €2.3 million (2023: €2.3 million) owed by
two landlords at the end of the lease term (note
15). Other than this, there is no
concentration of credit risk or dependence on individual customers
due to the large number of customers. Management has a credit
policy in place and the exposure to credit risk is monitored on an
ongoing basis. Outstanding customer balances are regularly
monitored and reviewed for indicators of impairment (evidence of
financial difficulty of the customer or payment default). The
maximum exposure to credit risk is represented by the carrying
amount of each financial asset.
The ageing profile of trade
receivables at 31 December 2024 is provided in note
15. Management does not expect any
significant losses from trade receivables, apart from those
provided for in note 15,
contract assets, accrued income or other receivables.
Cash and
cash equivalents
Cash and cash equivalents comprise
cash at bank and in hand and give rise to credit risk on the
amounts held with counterparties. The maximum credit risk is
represented by the carrying value at the reporting date. The
Group’s policy for investing cash is to limit risk of principal
loss and to ensure the ultimate recovery of invested funds by
limiting credit risk.
The Group reviews regularly the
credit rating of each bank and, if necessary, takes action to
ensure there is appropriate cash and cash equivalents held with
each bank based on their credit rating. During the year ended 31
December 2024, cash and cash equivalents were held in line within
predetermined limits depending on the credit rating of the relevant
bank or financial institution.
The carrying amount of the following
financial assets represents the Group’s maximum credit exposure.
The maximum exposure to credit risk at year end was as
follows:
|
|
Carrying
amount
|
Carrying
amount
|
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Trade receivables
|
10,846
|
10,830
|
|
Other receivables
|
6,995
|
2,828
|
|
Contract assets
|
3,448
|
4,612
|
|
Accrued income
|
3,599
|
3,069
|
|
Cash at bank and in hand
|
39,575
|
34,173
|
|
|
64,463
|
55,512
|
(b) Liquidity
risk
Liquidity risk is the risk that the
Group will encounter difficulty in meeting the obligations
associated with its financial liabilities. In general, the Group’s
approach to managing liquidity risk is to ensure as far as possible
that it will always have sufficient liquidity, through a
combination of cash and cash equivalents, cash flows and undrawn
credit facilities to:
Fund its ongoing
activities;
Allow it to invest in hotels that may
create value for shareholders; and
Maintain sufficient financial
resources to mitigate against risks and unforeseen
events.
The year ended 31 December 2024 saw
the Group deliver strong results and continue the execution of its
growth strategy. The full year impact of hotels added in the
previous year and the addition of new openings in the current year
has led to an increase in Group revenue from hotel operations from
€607.7 million to €652.2 million, as well as net cash generated
from operating activities in the year of €218.3 million (2023:
€171.4 million). The Group has cash and undrawn loan facilities of
€364.6 million at 31 December 2024 (2023: €283.5
million).
In October 2024, the Group
successfully completed a refinancing of its existing banking
facilities to provide a €475.0 million multicurrency loan facility
consisting of a €100.0 million green term loan and €375.0 million
revolving credit facility for a five-year term to 9 October 2029,
with two options to extend by a year. The Group also completed its
inaugural issuance of €124.7 million of green loan notes to
institutional investors for terms of five and seven years. The new
facilities replace the original multicurrency loan facility
consisting of a £176.5 million term loan facility and a €304.9
million revolving credit facility due to mature in October 2025
(note 22). The refinancing
further strengthens the Group’s financial position, providing
greater financial flexibility through the extension of the debt
facilities and supports the business as it continues to deliver on
its exciting growth strategy.
The Group remains in a very strong
financial position with significant financial headroom. The Group
is in full compliance with its covenants at 31 December 2024. The
Group’s covenants relate to Net Debt to EBITDA, as defined in the
Group’s external borrowings agreements which is equivalent to Net
Debt to EBITDA after rent, (see APM (xv) in Supplementary Financial
Information section) and Interest Cover (see APM (xvi) in
Supplementary Financial Information section). The Net Debt to
EBITDA covenant limit is 4.0 times and the Interest Cover minimum
is 4.0 times. At 31 December 2024, Net Debt to EBITDA after rent
for the Group is 1.3x and Interest Cover is 17.5 times.
The Group monitors its Debt and Lease
Service Cover (see APM (xiii) in Supplementary Financial
Information section), which is 2.7 times for the year ended 31
December 2024 (31 December 2023: 3.0 times), in order to monitor
gearing and liquidity taking into account both external lending and
lease financing. The Group have prepared financial projections and
subjected them to scenario testing which also supports ongoing
liquidity risk assessment and management. Further detail of this is
disclosed in the Viability Statement.
The following are the contractual
maturities of the Group’s financial liabilities at 31 December
2024, including estimated undiscounted interest payments. In the
below table, bank loans are repaid in line with their maturity
dates, even though the Group has the flexibility to repay and draw
the revolving credit facility throughout the term of the facilities
which would improve its liquidity position. The non-cancellable
undiscounted lease cashflows payable under lease contracts are set
out in note 14.
|
|
Contractual
cashflows
|
|
|
|
Carrying
value
|
Total
|
6
months
|
6 –
12
|
1 –
2
|
2 –
5
|
5 –
7
|
|
|
2024
|
2024
|
or
less
|
months
|
years
|
years
|
years
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Bank loans
|
(147,384)
|
(179,974)
|
(3,392)
|
(3,448)
|
(6,840)
|
(166,294)
|
-
|
|
Private placement notes
|
(124,000)
|
(166,318)
|
(3,423)
|
(3,479)
|
(6,902)
|
(72,220)
|
(80,294)
|
|
Trade and other payables and
accruals
|
(62,035)
|
(62,035)
|
(62,016)
|
-
|
(19)
|
-
|
-
|
|
|
(333,419)
|
(408,327)
|
(68,831)
|
(6,927)
|
(13,761)
|
(238,514)
|
(80,294)
|
The equivalent disclosure for the
prior year is as follows:
|
|
Contractual
cashflows
|
|
|
Carrying
value
|
Total
|
6
months
|
6 –
12
|
1 –
2
|
2 –
5
|
|
|
2023
|
2023
|
or
less
|
months
|
years
|
years
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Bank loans
|
(254,387)
|
(281,042)
|
(8,347)
|
(7,978)
|
(264,717)
|
-
|
|
Trade and other payables and
accruals
|
(62,911)
|
(62,911)
|
(62,563)
|
-
|
(348)
|
-
|
|
|
(317,298)
|
(343,953)
|
(70,910)
|
(7,978)
|
(265,065)
|
-
|
(c) Market
risk
Market risk is the risk that changes
in market prices and indices, such as interest rates and foreign
exchange rates, will affect the Group’s income or the value of its
holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
(i) Interest
rate risk
The Group is exposed to floating
interest rates on its debt obligations and uses hedging instruments
to mitigate the risk associated with interest rate fluctuations.
The Group has entered into interest rate swaps (note
23) which hedge the variability in
cash flows attributable to interest rate risk. All such
transactions are carried out within the guidelines set by the
Board. The Group seeks to apply hedge accounting to manage
volatility in profit or loss.
The Group determines the existence of
an economic relationship between the hedging instrument and the
hedged item based on the reference interest rates, maturities and
notional amounts. The Group assesses whether the derivative
designated in each hedging relationship is expected to be effective
in offsetting changes in cash flows of the hedged item using the
hypothetical derivative method.
In October 2024, the Group entered
into interest rate swaps to hedge the variable interest rate on its
new €100.0 million euro term loan for a four year period to 9
October 2028. As at 31 December 2024, the interest rate swaps cover
100% of the Group’s term euro denominated borrowings of €100.0
million for the period to 9 October 2028. The final year of the
term debt, to 9 October 2029, is currently unhedged. The Group’s
revolving credit facilities of €47.3 million as at 31 December 2024
are unhedged.
The private placement notes issued by
the Group carry a fixed coupon rate. Interest rates cannot vary on
the private placement loan notes except where the Group's Net Debt
to EBITDA after rent, calculated in line with external borrowing
covenants, exceeds certain ratchet levels, when varying premiums
are added to the coupon rate depending on the ratchet level. Where
the Group’s Net Debt to EBITDA after rent exceeds 3 times, a
premium of 50 basis points is added to the coupon rate and where
the Group’s Net Debt to EBITDA after rent exceeds 4 times, a
premium of 75 basis points is added to the interest rate at the
time.
Up to 8 October 2024 and as at 31
December 2023, interest rate swaps covered 100% of the Group’s term
Sterling denominated borrowings of £176.5 million.
The interest rate profile of the
Group’s interest-bearing financial liabilities as reported to the
management of the Group is as follows:
|
|
Nominal
amount
|
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Variable rate
instruments
|
|
|
|
Financial liabilities –
borrowings
|
147,311
|
258,723
|
|
Effect of interest rate
swaps
|
(100,000)
|
(203,095)
|
|
|
47,311
|
55,628
|
These interest-bearing financial
liabilities do not equate to amortised cost of bank loans and
instead represent the drawn amounts of bank loans which are owed to
external lenders. The private placement notes have a fixed coupon
rate so are excluded from the above table.
The weighted average interest rate on
bank loans, including margin, in 2024 was 3.33% (2023: 3.20%).
Margins on the Group’s bank loans are set with reference to the
Group’s Net Debt to EBITDA after rent in line with external
borrowing covenants and ratchet up or down accordingly. Following
the Group’s refinancing in October 2024, the applicable margin on
the term loan is 1.7% and on the revolving credit facility loans is
1.3% based on the Group’s Net Debt to EBITDA after rent at the time
which was in the 1- 2 times ratchet level. If the Group’s Net Debt
to EBITDA after rent exceeded 2 times, a premium of 25 basis points
would be added on to each margin rate.
The weighted average coupon rate on
private placement notes issued in 2024 was 5.43% (2023: €Nil). The
following table displays the coupon rates applicable on the private
placement notes which were issued during the year ended 31 December
2024.
|
Term
|
Euro
loan notes coupon rate
|
Sterling loan
notes coupon rate
|
|
5 year
|
4.51%
|
6.13%
|
|
7 year
|
4.71%
|
6.28%
|
The interest expense for the year
ended 31 December 2024 has been sensitised in the following tables
for a reasonably possible change in variable interest rates for
both Euro and Sterling bank loans. The weighted average variable
interest rate includes the impact of hedging on hedged portions of
the underlying loans. As the drawn term loan in 2024 was fully
hedged with interest rate swaps and these swaps were in the money
for the entire period of 2024, there is no impact on the interest
incurred on these term loans in the following sensitivity as the
rates were fixed (note 23).
The Group have reviewed the EURIBOR
and SONIA forward curves for the next ten years, as well as
reviewing the historical rates for EURIBOR and SONIA/LIBOR over the
past ten years. In relation to the upward sensitivity for the
Sterling variable interest rate, the Group believes that a
reasonable change in SONIA would be an uplift to 5.5%, which would
give the Group a weighted average Sterling variable interest rate
of 1.9% including the impact of interest rate swaps.
In relation to the upward sensitivity
for the Euro variable interest rate, the Group believes that a
reasonable change in EURIBOR would be an uplift to 3.9%, which
would give the Group a weighted average Euro variable interest rate
of 2.4%, including the impact of interest rate swaps.
In relation to the downward
sensitivity, the Group has used an interest rate of zero as there
is a floor embedded in the bank loan facilities, which prevents the
Group from benefiting from any reduction in rates sub-zero,
however, it results in an additional interest cost for the Group on
hedged loans. As a result of this downward sensitivity analysis and
taking into account the impact of hedging, the weighted average
Sterling variable interest rate is 0.8% and the weighted average
Euro variable interest rate is 1.9%.
As the private placement notes issued
during the year ended 31 December 2024 carry fixed coupon rates,
there is no impact on the interest incurred on them and therefore
excluded from this sensitivity analysis. The finance income earned
during the year ended 31 December 2024 has not been sensitised in
the following tables due to its immateriality.
The impact on profit or loss is shown
hereafter. This analysis assumes that all other variables, in
particular foreign currency exchange rates, remain
constant.
|
|
2024
actual weighted average variable benchmark rate
|
Sensitised
weighted average as a result of upward sensitivity
|
Sensitised
weighted average as a result of downward sensitivity
|
|
Euro variable rate
|
2.3%
|
2.4%
|
1.9%
|
|
Sterling variable rate
|
1.8%
|
1.9%
|
0.8%
|
|
|
2023
actual weighted average variable benchmark rate
|
Sensitised
weighted average as a result of upward sensitivity
|
Sensitised
weighted average as a result of downward sensitivity
|
|
Euro variable rate
|
3.0%
|
3.9%
|
0.0%
|
|
Sterling variable rate
|
1.7%
|
1.7%
|
1.1%
|
The weighted average variable
interest rates in the above tables include the impact of hedging
and exclude margin costs
Sensitivity
analysis for variable rate instruments
|
|
Effect
on profit or loss
|
|
|
Increase in
rate
|
Decrease in
rate
|
|
|
€’000
|
€’000
|
|
2024
|
|
|
|
(Increase)/decrease in interest on
bank loans
|
(151)
|
2,226
|
|
Decrease/(increase) in tax
charge
|
19
|
(278)
|
|
(Decrease)/increase
in profit
|
(132)
|
1,948
|
|
|
|
|
|
2023
|
|
|
|
(Increase)/decrease in interest on
bank loans
|
(71)
|
1,487
|
|
Decrease/(increase) in tax
charge
|
9
|
(186)
|
|
(Decrease)/increase in
profit
|
(62)
|
1,301
|
Contracted
maturities of estimated interest payments from swaps
The following table indicates the
periods in which the cash flows associated with the interest rate
swaps are expected to occur and the carrying amounts of the related
hedging instruments for the year ended 31 December 2024. A positive
cash flow in the below table indicates the variable rate for
interest rate swaps, based on forward curves as at 31 December
2024, is forecast to be higher than fixed rates. The below amounts
only refer to the undiscounted interest forecasted to be incurred
under the interest rate swap liabilities.
|
|
31
December 2024
|
|
|
Carrying
amount
|
Total
|
12
months or less
|
More
than 1 year
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Interest rate
swaps
|
|
|
|
|
|
Liabilities
|
(244)
|
(243)
|
33
|
(276)
|
The following table indicates the
periods in which the cash flows associated with cash flow hedges
are expected to impact profit or loss and the carrying amounts of
the related hedging instruments for the year ended 31 December
2024. A positive cash flow in the table indicates the variable rate
for interest rate swaps, based on forward curves as at 31 December
2024, is forecast to be higher than fixed rates. The below amounts
only refer to the undiscounted interest forecasted to be incurred
under the interest rate swap liabilities.
|
|
31
December 2024
|
|
|
Carrying
amount
|
Total
|
12
months or less
|
More
than 1 year
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Interest rate
swaps
|
|
|
|
|
|
Liabilities
|
(244)
|
(243)
|
33
|
(276)
|
The following table indicates the
periods in which the cash flows associated with the interest rate
swaps are expected to occur and the carrying amounts of the related
hedging instruments for the year ended 31 December 2023:
|
|
31
December 2023
|
|
|
Carrying
amount
|
Total
|
12
months or less
|
More
than 1 year
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Interest rate
swaps
|
|
|
|
|
|
Assets
|
6,521
|
7,573
|
7,573
|
-
|
The following table indicates the
periods in which the cash flows associated with cash flow hedges
are expected to impact profit or loss and the carrying amounts of
the related hedging instruments for the year ended 31 December
2023:
|
|
31
December 2023
|
|
|
Carrying
amount
|
Total
|
12
months or less
|
More
than 1 year
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Interest rate
swaps
|
|
|
|
|
|
Assets
|
6,521
|
7,573
|
7,573
|
-
|
(ii) Foreign
currency risk
As per the Risk Management section of
the annual report, the Group is exposed to fluctuations in the
Euro/Sterling exchange rate.
The Group is exposed to transactional
foreign currency risk on trading activities conducted by
subsidiaries in currencies other than their functional currency and
to foreign currency translation risk on the retranslation of
foreign operations to Euro.
The Group’s policy is to manage
foreign currency exposures commercially and through netting of
exposures where possible. The Group’s principal transactional
exposure to foreign exchange risk relates to interest costs on its
Sterling bank loans and private placement notes. This risk is
mitigated by the earnings from UK subsidiaries which are
denominated in Sterling.
The Group’s gain or loss on
retranslation of the net assets of foreign currency subsidiaries is
taken directly to the translation reserve.
The Group limits its exposure to
foreign currency risk by using Sterling bank loans and private
placement notes to hedge part of the Group’s investment in UK
subsidiaries. At 31 December 2024, £52.5 million of private
placement loan notes (€63.3 million) are designated as net
investment hedges. This net investment hedge was fully effective
from the date of issuance of these loan notes in October 2024, to
31 December 2024. In 2023 and from 1 January 2024 to 9 October
2024, the Group had £176.5 million sterling denominated term
borrowings which hedged part of the Group’s investment in UK
subsidiaries (2023: £176.5 million (€203.1 million). The net
investment hedge was fully effective during this period.
This enables gains and losses arising
on retranslation of those foreign currency borrowings to be
recognised in Other Comprehensive Income, providing a partial
offset in reserves against the gains and losses arising on
translation of the net assets of those UK operations.
Sensitivity
analysis on transactional risk
The Group performed a sensitivity
analysis on the impact on the Group’s profit after tax and equity
had foreign exchange rates been different. The impact of different
foreign exchange rates was considered both on Sterling bank loans
and Sterling private placement loan notes. The Group reviewed the
historical Euro/Sterling foreign exchange rates for the previous
ten years as well as the current forward curves for Euro/Sterling
foreign exchange rates for the following five years which takes
into account periods of market volatility. Based on the analysis,
the Group have chosen to use 0.73 to calculate the impact of Euro
weakening against Sterling and 0.94 in the upward sensitivity of
Euro strengthening against Sterling.
|
|
Profit
|
Equity
|
|
|
Strengthening of
Euro
|
Weakening
of
Euro
|
Strengthening of
Euro
|
Weakening
of
Euro
|
|
|
€’000
|
€’000
|
€’000
|
€’000
|
|
Decrease/(increase) in interest costs
on Sterling bank loans and private placement notes
|
870
|
(1,449)
|
870
|
(1,449)
|
|
Impact on tax charge
|
(109)
|
181
|
(109)
|
181
|
|
Increase/(decrease)
in profit
|
761
|
(1,268)
|
|
|
|
Increase/(decrease)
in equity
|
|
|
761
|
(1,268)
|
(d) Capital
management
The Group’s policy is to maintain a
strong capital base to preserve investor, creditor and market
confidence and to sustain future development of the business.
Management monitors the return on capital to ordinary
shareholders.
The Board of Directors seeks to
maintain a balance between the higher returns that might be
possible with higher levels of borrowings and the advantages and
security afforded by a sound capital position. The Group’s target
is to achieve a pre-tax leveraged internal rate of return of at
least 15% on investments and typically a rent cover of 1.85 times
in year three for leased assets.
Typically, the Group monitors capital
using a ratio of Net Debt to EBITDA after rent which excludes the
effects of IFRS 16, in line with its external borrowings covenants.
This is calculated based on the prior 12-month period. The Net Debt
to EBITDA after rent as at 31 December 2024 is 1.3 times (31
December 2023: 1.3 times).
The Group also monitors Net Debt and
Lease Liabilities to Adjusted EBITDA which, at 31 December 2024, is
4.3x (31 December 2023: 4.1x) (APM (viii)).
The Group’s approach to capital
management has ensured that it continues to maintain a very strong
financial position.
26
Commitments
Section 357
Companies Act 2014
Dalata Hotel Group plc, as the parent
company of the Group and for the purposes of filing exemptions
referred to in Section 357 of the Companies Act 2014, has entered
into guarantees in relation to the liabilities and commitments of
the Republic of Ireland registered subsidiary companies which are
listed below:
|
Suvanne Management Limited
|
Candlevale Limited
|
|
Carasco Management Limited
|
DHG Arden Limited
|
|
Heartside Limited
|
Merzolt Limited
|
|
Palaceglen Limited
|
Pondglen Limited
|
|
Songdale Limited
|
Lintal Commercial Limited
|
|
Amelin Commercial Limited
|
Pillo Hotels Limited
|
|
DHG Burlington Road
Limited
|
Loadbur Limited
|
|
Dalata Support Services
Limited
|
DHG Cordin Limited
|
|
Bernara Commercial Limited
|
Leevlan Limited
|
|
Adelka Limited
|
Fonteyn Property Holdings
Limited
|
|
DS Charlemont Limited
|
DHG Dalton Limited
|
|
DHG Barrington Limited
|
DHG Glover Limited
|
|
Fonteyn Property Holdings No. 2
Limited
|
DHG Harton Limited
|
|
DHG Eden Limited
|
DHG Indigo Limited
|
|
Galsay Limited
|
DHG Fleming Limited
|
|
Williamsberg Property
Limited
|
|
Capital
commitments
The Group has the following
commitments for future capital expenditure under its contractual
arrangements.
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Contracted but not provided
for
|
55,783
|
20,569
|
This relates primarily to the
construction of a new hotel in Edinburgh (€41.7 million) which is
contractually committed and the development of Clayton Cardiff Lane
(€6.5 million). It also includes committed capital expenditure at
other hotels in the Group.
The Group has further commitments in
relation to fixtures, fittings and equipment in some of its leased
hotels. Under certain lease agreements, the Group has committed to
spending a percentage of turnover on capital expenditure in respect
of fixtures, fittings and equipment in the leased hotels over the
life of the lease. The Group has estimated this commitment to be
€66.9 million (31 December 2023: €77.3 million) spread over the
life of the various leases with the majority ranging in length from
17 years to 33 years. The turnover figures used in this estimate
are based on 2025 budgeted revenues.
27
Related party transactions
Under IAS 24 Related Party
Disclosures, the Group has
related party relationships with Shareholders and the Executive
Directors of the Company.
Remuneration
of key management
Key management is defined as the
Directors of the Company and does not extend to any other members
of the Executive Management Team. The compensation of key
management personnel is set out in the Remuneration Committee
report. In addition, the share-based payments expense for key
management in 2024 was €1.0 million (2023: €0.9
million).
There are no other related party
transactions requiring disclosure in accordance with IAS 24 in
these consolidated financial statements.
28
Subsequent events
On 9 January 2025, the group
completed the sale of the Clayton Whites Hotel, Wexford for a cash
consideration of €21.0 million.
In January 2025, the group
repurchased €6.5 million worth of shares, concluding the second
share buyback programme announced in October 2024.
In February 2025, the
Group entered a lease agreement for a hotel to be developed at 60
Morrison Street, Edinburgh, which is expected to open in 2028,
subject to planning permission.
On 5 March 2025, the Board proposed a
final dividend of 8.4 cents per share. This proposed dividend is
subject to approval by the shareholders at the Annual General
Meeting. The payment date for the final dividend will be 8 May 2025
to shareholders registered on the record date 4 April 2025. Based
on the expected number of shares that will be in issue on this
date, the amount of the proposed dividend will be €17.8 million.
These consolidated financial statements do not reflect this
dividend.
29
Subsidiary undertakings
A list of all subsidiary undertakings
at 31 December 2024 is set out below:
|
|
|
|
Ownership
|
|
Subsidiary
undertaking
|
Country of
Incorporation
|
Activity
|
Direct
|
Indirect
|
|
DHG Glover Limited1
|
Ireland
|
Holding company
|
100%
|
-
|
|
DHG Fleming
Limited1
|
Ireland
|
Financing company
|
100%
|
-
|
|
DHG Harton Limited1
|
Ireland
|
Holding company
|
100%
|
-
|
|
DHGL Limited1
|
Ireland
|
Holding company
|
-
|
100%
|
|
Dalata Limited1
|
Ireland
|
Holding company
|
-
|
100%
|
|
Hanford Commercial
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Anora Commercial
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Ogwell Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Caruso Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
C I Hotels Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Tulane Business Management
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Dalata Support Services
Limited1
|
Ireland
|
Hotel management
|
-
|
100%
|
|
Fonteyn Property Holdings
Limited1
|
Ireland
|
Hotel management
|
-
|
100%
|
|
Fonteyn Property Holdings No. 2
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Suvanne Management
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Carasco Management
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Amelin Commercial
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Lintal Commercial
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Bernara Commercial
Limited1
|
Ireland
|
Property investment
|
-
|
100%
|
|
Pillo Hotels
Limited1
|
Ireland
|
Dormant company
|
-
|
100%
|
|
Loadbur Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Heartside Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Pondglen Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Candlevale Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Songdale Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Palaceglen Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Adelka Limited1
|
Ireland
|
Property holding company
|
-
|
100%
|
|
Leevlan Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Arden Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Barrington
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Cordin Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DS Charlemont
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Galsay Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
Merzolt Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Burlington Road
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Eden Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Dalton Limited1
|
Ireland
|
Property holding company
|
-
|
100%
|
|
Williamsberg Property
Limited1
|
Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Indigo Limited1
|
Ireland
|
Holding company
|
-
|
100%
|
|
DHG Belfast
Limited2
|
N Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Derry Limited2
|
N Ireland
|
Hotel and catering
|
-
|
100%
|
|
DHG Derry Commercial
Limited2
|
N Ireland
|
Dormant company
|
-
|
100%
|
|
DHG Brunswick
Limited2
|
N Ireland
|
Hotel and catering
|
-
|
100%
|
|
Dalata UK Limited3
|
UK
|
Holding company
|
-
|
100%
|
|
Dalata Cardiff
Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
Trackdale Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
Islandvale Limited3
|
UK
|
Dormant company
|
-
|
100%
|
|
Crescentbrook
Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
Hallowridge
Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
Rush (Central)
Limited3
|
UK
|
Property holding company
|
-
|
100%
|
|
Hotel La Tour Birmingham
Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
SRD (Trading)
Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
SRD (Management)
Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
DHG Finsbury Park
Limited3
|
UK
|
Property holding company
|
-
|
100%
|
|
DHG Castle Limited3
|
UK
|
Hotel and catering
|
-
|
100%
|
|
DHG Phoenix
Limited3
|
UK
|
Property holding company
|
-
|
100%
|
|
Hintergard Limited4
|
Jersey
|
Property holding company
|
-
|
100%
|
|
Dalata Deutschland Holding
GmbH5
|
Germany
|
Holding company
|
-
|
100%
|
|
Dalata Deutschland Hotelbetriebs
GmbH5
|
Germany
|
Hotel and catering
|
-
|
100%
|
|
American Hotel Exploitatie
B.V. 6
|
Netherlands
|
Hotel and catering
|
-
|
100%
|
|
DHG Amsterdam B.V.
6
|
Netherlands
|
Holding company
|
-
|
100%
|
|
Dalata Coliseo S.L.
7
|
Spain
|
Dormant company
|
-
|
100%
|
-
The registered address of these companies is Termini, 3 Arkle
Road, Sandyford Business Park, Dublin 18, D18C9C5.
-
The registered address of these companies is Butcher Street,
Londonderry, County Derry BT48 6HL, UK.
-
The registered address of these companies is St Mary Street,
Cardiff, Wales, CF10 1GD, UK.
-
The registered address of this company is 12 Castle Street,
St Helier Jersey, JE2 3RT.
-
The registered address of this company is
Thurn-und-Taxis-Platz 6, 60313 Frankfurt am Main,
Germany.
-
The registered address of this company is Leidsekade 97, 1017
PN Amsterdam, Netherlands.
-
The registered address of this company is Calle Trafalgar,
25, Principal PTA, 1, Barcelona, Spain.
During the 2023 year the registered
address for the Irish subsidiary undertakings was changed from
4th Floor, Burton Court, Burton Hall Drive,
Sandyford, Dublin 18 to Termini, 3 Arkle Road, Sandyford Business
Park, Dublin 18.
30
Earnings per share
Basic earnings per share is computed
by dividing the profit for the year available to ordinary
shareholders by the weighted average number of ordinary shares
outstanding during the year. Diluted earnings per share is computed
by dividing the profit for the year available to ordinary
shareholders by the weighted average number of ordinary shares
outstanding and, when dilutive, adjusted for the effect of all
potentially dilutive shares.
The following table sets out the
computation for basic and diluted earnings per share for the years
ended 31 December 2024 and 31 December 2023.
|
|
2024
|
2023
|
|
Profit attributable to shareholders
of the parent (€’000) – basic and diluted
|
78,741
|
90,222
|
|
Adjusted profit attributable to
shareholders of the parent (€’000) – basic and diluted
|
89,460
|
93,213
|
|
Earnings per share – Basic
|
35.5
cents
|
40.4 cents
|
|
Earnings per share –
Diluted
|
35.3
cents
|
39.9 cents
|
|
Adjusted earnings per share –
Basic
|
40.4
cents
|
41.7 cents
|
|
Adjusted earnings per share –
Diluted
|
40.1
cents
|
41.2 cents
|
|
Weighted average shares outstanding –
Basic
|
221,621,597
|
223,299,760
|
|
Weighted average shares outstanding –
Diluted
|
223,320,862
|
226,396,287
|
The difference between the basic and
diluted weighted average shares outstanding for the year ended 31
December 2024 is due to the dilutive impact of the conditional
share awards granted in 2021, 2022, 2023 and 2024. For the year
ended 31 December 2023, the difference between basic and diluted
EPS is due to the dilutive impact of the conditional share awards
granted in 2020, 2021, 2022 and 2023.
Adjusted earnings per share (basic
and diluted) are presented as alternative performance measures to
show the underlying performance of the Group excluding the tax
adjusted effects of items considered by management to not reflect
normal trading activities or distort comparability either year on
year or with other similar businesses (note 2).
As a result of the refinancing in
October 2024, the Group recognised a modification loss of €7.5
million in net finance costs in profit or loss for the year ended
31 December 2024. As this is not reflective of normal trading
activity, it is presented as an Adjusting item to arrive at
Adjusted profit before tax and Adjusted profit after
tax.
|
|
2024
|
2023
|
|
|
€’000
|
€’000
|
|
Reconciliation to
adjusted profit for the year
|
|
|
|
Profit before tax
|
91,238
|
105,532
|
|
|
|
|
|
Adjusting items
(note 2,
6)
|
|
|
|
Impairment charge/(reversal) relating
to property, plant and equipment through profit and loss
|
1,322
|
(2,025)
|
|
Impairment charge relating to
investment property
|
96
|
-
|
|
Impairment reversal relating to
right-of-use assets
|
(1,719)
|
-
|
|
Modification loss on
refinancing
|
7,525
|
-
|
|
Hotel pre-opening expenses
|
1,895
|
497
|
|
Acquisition-related costs
|
1,106
|
4,389
|
|
Adjusted profit
before tax
|
101,463
|
108,393
|
|
Tax charge (note 9)
|
(12,497)
|
(15,310)
|
|
Adjusting items in
tax charge
|
|
|
|
Tax adjustment for adjusting
items
|
494
|
130
|
|
Adjusted profit for
the year
|
89,460
|
93,213
|
31
Approval of the financial statements
The financial statements were
approved by the Directors on 5 March 2025.
Supplementary
Financial Information
Alternative
Performance Measures (‘APMs’) and other definitions
The Group reports certain alternative
performance measures (‘APMs’) that are not defined under
International Financial Reporting Standards (‘IFRS’), which is the
framework under which the consolidated financial statements are
prepared. These are sometimes referred to as ‘non-GAAP’
measures.
The Group believes that reporting these
APMs provides useful supplemental information which, when viewed in
conjunction with the IFRS financial information, provides
stakeholders with a more comprehensive understanding of the
underlying financial and operating performance of the Group and its
operating segments.
These APMs are primarily used for the
following purposes:
-
to evaluate
underlying results of the operations; and
-
to discuss and
explain the Group’s performance with the investment analyst
community.
The APMs can have limitations as
analytical tools and should not be considered in isolation or as a
substitute for an analysis of the results in the consolidated
financial statements which are prepared under IFRS. These
performance measures may not be calculated uniformly by all
companies and therefore may not be directly comparable with
similarly titled measures and disclosures of other
companies.
The definitions of and reconciliations
for certain APMs are contained within the consolidated financial
statements. A summary definition of these APMs together with the
reference to the relevant note in the consolidated financial
statements where they are reconciled is included below. Also
included below is information pertaining to certain APMs which are
not mentioned within the consolidated financial statements but
which are referred to in other sections of this report. This
information includes a definition of the APM, in addition to a
reconciliation of the APM to the most directly reconcilable line
item presented in the consolidated financial statements. References
to the consolidated financial statements are included as
applicable.
-
Adjusting items
Adjusting items are presented to show
items which are not reflective of normal trading activities or
distort comparability either year on year or with other similar
businesses. The adjusting items are disclosed in note 2 and note 30
to the consolidated financial statements. Adjusting items with a
cash impact are set out in APM xi below.
-
Adjusted EBITDA
Adjusted EBITDA is an APM representing
earnings before interest on lease liabilities, other net interest
and finance costs, tax, depreciation of property, plant and
equipment and right-of-use assets and amortisation of intangible
assets, adjusted to show the underlying operating performance of
the Group and excludes items which are not reflective of normal
trading activities or which distort comparability either year on
year or with other similar businesses.
Reconciliation: Note
2
-
EBITDA and Segmental EBITDA
EBITDA is an APM representing earnings
before interest on lease liabilities, other net interest and
finance costs, tax, depreciation of property, plant and equipment
and right-of-use assets and amortisation of intangible assets. Also
referred to as Group EBITDA.
Reconciliation: Note
2
Segmental EBITDA represents ‘Adjusted
EBITDA’ before central costs, share-based payments expense and
other income for each of the reportable segments: Dublin, Regional
Ireland, the UK and Continental Europe. It is presented to show the
net operational contribution of leased and owned hotels in each
geographical location. Also referred to as Hotel EBITDA.
Reconciliation: Note
2
-
EBITDAR and Segmental EBITDAR
EBITDAR is an APM representing earnings
before interest on lease liabilities, other net interest and
finance costs, tax, depreciation of property, plant and equipment
and right-of-use assets, amortisation of intangible assets and
variable lease costs.
Segmental EBITDAR represents Segmental
EBITDA before variable lease costs for each of the reportable
segments: Dublin, Regional Ireland, the UK and Continental Europe.
It is presented to show the net operational contribution of leased
and owned hotels in each geographical location before lease costs.
Also referred to as Hotel EBITDAR.
Reconciliation: Note
2
-
Adjusted earnings per share (EPS) (basic and
diluted)
Adjusted EPS (basic and diluted) is
presented as an APM to show the underlying performance of the Group
excluding the tax adjusted effects of items considered by
management to not reflect normal trading activities or which
distort comparability either year on year or with other similar
businesses.
Reconciliation: Note
30
-
Net Debt
This APM is presented to show Net Debt
as calculated in line with external borrowing covenants and
includes private placement notes issued and external bank loans
drawn and owed to the lenders and note holders as at year end
(rather than the amortised cost of the bank loans and private
placement notes), less cash and cash equivalents.
Reconciliation:
Refer below
-
Net Debt and Lease Liabilities
This APM is presented to show Net Debt
(see definition vi) plus Lease Liabilities at year end.
Reconciliation:
Refer below
-
Net Debt and Lease Liabilities to Adjusted EBITDA
Net Debt and Lease Liabilities (see
definition vii) divided by the ‘Adjusted EBITDA’ (see definition
ii) for the year. This APM is presented to show the Group’s
financial leverage after including the accounting estimate of lease
liabilities under IFRS 16 Leases.
Reconciliation:
Refer below
-
Net Debt to Value
Net Debt (see definition vi) divided by
the valuation of property assets as provided by independent
external valuers at year end. This APM is presented to show the
gearing level of the Group.
Reconciliation:
Refer below
|
Reconciliation of Net
Debt APMs - definitions (vi), (vii), (viii), (ix)
|
|
Reference in
financial statements
|
31 Dec
2024
€’000
|
31 Dec 2023
€’000
|
|
Bank loans and private placement notes
at amortised cost
|
|
Statement of financial
position
|
271,384
|
254,387
|
|
Accounting adjustment to bring to
amortised cost
|
|
|
1,243
|
4,336
|
|
Bank loans drawn and private placement
notes issued
|
|
Note 22
|
272,627
|
258,723
|
|
Less cash and cash
equivalents
|
|
Statement of financial
position
|
(39,575)
|
(34,173)
|
|
Net Debt (APM
vi)
|
A
|
Note 22
|
233,052
|
224,550
|
|
Lease Liabilities - current and
non-current
|
|
Statement of financial
position
|
778,558
|
698,598
|
|
Net Debt and Lease
Liabilities (APM vii)
|
B
|
Note 22
|
1,011,610
|
923,148
|
|
Adjusted EBITDA (APM ii)
|
C
|
Note 2
|
234,453
|
223,108
|
|
Net Debt and Lease
Liabilities to Adjusted EBITDA (APM viii)
|
B/C
|
|
4.3x
|
4.1x
|
|
Valuation of property assets as
provided by external valuers1
|
D
|
|
1,638,334
|
1,545,314
|
|
Net Debt to Value
(APM ix)
|
A/D
|
|
14.2%
|
14.5%
|
1 Property
assets valued exclude assets under construction and fixtures,
fittings and equipment in leased hotels.
-
Lease Modified Net Debt to Adjusted EBITDA
Lease Modified Net Debt, defined as Net
Debt (see definition vi) plus eight times the Group’s lease cash
flow commitment, divided by ‘Adjusted EBITDA’ (see definition ii)
for the year. The Group’s lease cash flow commitment is based on
its non-cancellable undiscounted lease cash flows payable under
existing lease contracts for the next financial year as presented
in note 14. This APM is presented to show an alternative view of
the Group’s leverage calculated in line with methodology used by
the investment community including some credit rating
agencies.
Reconciliation:
Refer below
|
Reconciliation of
Lease Modified Net Debt to Adjusted EBITDA APM - definition
(x)
|
|
Reference in
financial statements
|
31 Dec
2024
€’000
|
31 Dec 2023
€’000
|
|
Non-cancellable undiscounted lease cash
flows payable under lease contracts in the next financial
year
|
A
|
Note 14
|
67,053
|
57,603
|
|
Modified Lease Debt
|
B=A*8
|
|
536,424
|
460,824
|
|
Net Debt (APM vi)
|
C
|
Note 22
|
233,052
|
224,550
|
|
Lease Modified Net Debt
|
D=B+C
|
|
769,476
|
685,374
|
|
Adjusted EBITDA (APM ii)
|
E
|
Note 2
|
234,453
|
223,108
|
|
Lease Modified Net
Debt to Adjusted EBITDA (APM x)
|
D/E
|
|
3.3x
|
3.1x
|
-
Free Cashflow
Net cash from operating activities less
amounts paid for other net interest and finance costs,
refurbishment capital expenditure, fixed lease payments and after
adding back the cash paid in respect of items that are deemed
one-off and thus not reflecting normal trading activities or
distort comparability either year on year or with other similar
businesses (see definition i). This APM is presented to show the
cash generated from operating activities to fund acquisitions,
development expenditure, repayment of debt and shareholder
returns.
Reconciliation:
Refer below
-
Free Cashflow per Share (FCPS)
Free Cashflow (see definition xi)
divided by the weighted average shares outstanding - basic. This
APM forms the basis for the performance condition measure in
respect of share awards made after 3 March 2021.
FCPS for LTIP performance measure
purposes has been adjusted to exclude the impact of items that are
deemed one-off and thus not reflecting normal trading activities or
distorting comparability either year on year or with other similar
businesses. The Group takes this approach to encourage the vigorous
pursuit of opportunities, and by excluding certain one-off items,
drive the behaviours sought from the executives and encourage
management to invest for the long-term interests of
shareholders.
Reconciliation:
Refer below
-
Debt and Lease Service Cover
Free Cashflow (see definition xi)
before payment of lease costs, other net interest and finance costs
divided by the total amount paid for lease costs, other net
interest and finance costs. This APM is presented to show the
Group’s ability to meet its debt and lease commitments.
Reconciliation:
Refer below
|
Reconciliation of
APMs (xi), (xii), (xiii)
|
|
Reference in
financial statements
|
2024
€’000
|
2023
€’000
|
|
|
|
|
|
|
|
Net cash from operating
activities
|
|
Statement of cash flows
|
218,273
|
171,379
|
|
Other net interest and finance costs
paid
|
|
Statement of cash flows
|
(14,595)
|
(8,726)
|
|
Refurbishment capital expenditure
paid
|
|
|
(25,547)
|
(26,050)
|
|
Fixed
lease payments:
|
|
|
|
|
|
- Interest paid on lease
liabilities
|
|
Statement of cash flows
|
(49,487)
|
(42,751)
|
|
- Repayment of lease
liabilities
|
|
Statement of cash flows
|
(11,767)
|
(10,747)
|
|
|
|
|
116,877
|
83,105
|
|
Exclude
adjusting items with a cash effect:
|
|
|
|
|
|
Net impact from tax deferrals from
government Covid-19 support schemes1
|
|
|
-
|
34,917
|
|
2022 corporation tax payment in
20232
|
|
|
-
|
10,451
|
|
Acquisition-related costs
paid
|
|
Note 2
|
495
|
4,389
|
|
Pre-opening costs paid
|
|
Note 2
|
1,895
|
497
|
|
Refinancing costs
paid3
|
|
|
4,430
|
-
|
|
Free Cashflow (APM
xi)
|
A
|
|
123,697
|
133,359
|
|
Weighted average shares outstanding –
basic
|
B
|
Note 30
|
221,621,597
|
223,299,760
|
|
Free Cashflow per
Share (APM xii) – cents
|
A/B
|
|
55.8
|
59.7
|
|
Total lease costs
paid4
|
|
|
64,766
|
57,373
|
|
Other net interest and finance costs
paid (excluding refinancing costs paid)3
|
|
|
10,165
|
8,726
|
|
Total lease costs, net interest and
finance costs paid
|
C
|
|
74,931
|
66,099
|
|
Free Cashflow before lease and finance
costs
|
D=A+C
|
|
198,628
|
199,458
|
|
Debt and Lease
Service Cover (APM xiii)
|
D/C
|
|
2.7x
|
3.0x
|
1 During the prior year, the Group paid deferred VAT and
payroll tax liabilities totalling €34.9 million under the Debt
Warehousing scheme in the Republic of Ireland. This non-recurring
initiative was introduced under Irish government Covid-19 support
schemes and allowed the temporary retention of an element of taxes
collected between March 2020 and May 2022 to assist businesses who
experienced cash flow and trading difficulties during the
pandemic.
2 During the prior year, the Group paid €10.5 million of
Irish corporation tax relating to the 2022 financial year due to
available payment schedule following pandemic losses.
3 Included in
other net interest and finance costs paid of €14.6 million per the
consolidated statement of cash flows are costs paid totalling €4.4
million relating to the refinancing of the Group’s existing banking
facilities completed during the year.
4 Total lease
costs paid comprises payments of fixed and variable lease costs
during the year.
-
Normalised Return on Invested Capital
Adjusted EBIT after rent divided by the
Group’s average normalised invested capital. The Group defines
normalised invested capital as total assets less total liabilities
at the year end and excludes the accumulated revaluation
gains/losses included in property, plant and equipment, loans and
borrowings, cash and cash equivalents, derivative financial
instruments and taxation related balances. The Group also excludes
the impact of items which are quasi-debt in nature, the investment
in the construction of future assets including payments relating to
future leased assets and deposits paid which are refundable at the
end of the lease term or relate to acquisitions which had not
completed at year end. The
Group’s net assets are adjusted to reflect the average level of
acquisition investment spend and the average level of working
capital for the accounting period. In most years, the average
normalised invested capital is the average of the opening and
closing normalised invested capital for the year.
Adjusted EBIT after rent represents the
Group’s operating profit for the year restated to remove the impact
of adjusting items (see definition i) and to replace depreciation
of right-of-use assets with fixed lease payments.
The Group presents this APM to provide
stakeholders with a meaningful understanding of the underlying
financial and operating performance of the
Group.
Reconciliation:
Refer below
|
Reconciliation of APM
(xiv)
|
|
Reference in
financial statements
|
2024
€’000
|
2023
€’000
|
|
|
|
|
|
|
|
Operating profit
|
|
Statement of comprehensive
income
|
158,458
|
156,143
|
|
Add back/(less):
|
|
|
|
|
|
Total adjusting items as per the
financial statements
|
|
Note 2
|
2,700
|
2,861
|
|
Depreciation of right-of-use
assets
|
|
Note 2
|
33,727
|
30,663
|
|
Fixed lease payments
|
|
Note 14
|
(61,254)
|
(53,498)
|
|
Adjusted EBIT after
rent
|
A
|
|
133,631
|
136,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at balance sheet
date
|
|
Statement of financial
position
|
1,419,405
|
1,392,937
|
|
|
|
|
|
|
|
Add back
|
|
|
|
|
|
Loans and borrowings
|
|
Statement of financial
position
|
271,384
|
254,387
|
|
Deferred tax liabilities
|
|
Statement of financial
position
|
92,763
|
84,441
|
|
Current tax liabilities
|
|
Statement of financial
position
|
1,576
|
2,659
|
|
Derivative liabilities
|
|
Statement of financial
position
|
244
|
-
|
|
|
|
|
|
|
|
Less
|
|
|
|
|
|
Revaluation uplift in property, plant
and equipment1
|
|
Note 13
|
(527,005)
|
(518,770)
|
|
Cash and cash equivalents
|
|
Statement of financial
position
|
(39,575)
|
(34,173)
|
|
Deferred tax assets
|
|
Statement of financial
position
|
(33,100)
|
(24,136)
|
|
Derivative assets
|
|
Statement of financial
position
|
-
|
(6,521)
|
|
Invested capital
|
B
|
|
1,185,692
|
1,150,824
|
|
Average invested capital
|
C
|
|
1,168,258
|
1,067,107
|
|
Return on Invested Capital
|
A/C
|
|
11.4%
|
12.8%
|
|
|
|
|
|
|
|
Non-current other
receivables
|
D
|
Statement of financial
position
|
(7,362)
|
(6,418)
|
|
Assets under construction at year
end
|
E
|
Note 13
|
(30,741)
|
(101,703)
|
|
Normalised invested
capital
|
B-D-E
|
|
1,147,589
|
1,042,703
|
|
Average normalised
invested capital
|
F
|
|
1,095,146
|
979,075
|
|
Normalised Return on
Invested Capital (APM xiv)
|
A/F
|
|
12.2%
|
13.9%
|
1 Includes
the combined net revaluation uplift included in property, plant and
equipment since the revaluation policy was adopted in 2014 or in
the case of hotel assets acquired after this date, since the date
of acquisition. The carrying value of land and buildings, revalued
at 31 December 2024, is €1,564.2 million (31 December 2023:
€1,478.6 million). The value of these assets under the cost model
is €1,037.2 million (31 December 2023: €959.9 million). Therefore,
the revaluation uplift included in property, plant and equipment is
€527.0 million (31 December 2023: €518.8 million). Refer to note 13
to the financial statements.
-
Net Debt to EBITDA after rent (external
borrowing covenants)
Net Debt (see definition vi) divided by
EBITDA after rent for the year. EBITDA after rent is defined as
Adjusted EBITDA (see definition ii) less fixed lease payments and
is calculated in line with external borrowing covenants which
specify the inclusion of pre-opening expenses and exclusion of
share-based payment expense. EBITDA (see definition iii) relating
to any hotels disposed during the covenant period are excluded,
while full period EBITDA relating to hotels acquired during the
covenant period are included.
Prior to the refinancing of the Group’s
existing banking facilities, fixed lease costs were required to be
measured under IAS 17 Leases by our banking covenants. Under the terms of the
refinanced facilities, fixed lease costs are measured as fixed
lease payments recognised per the statement of cash flows under
IFRS 16 Leases.
This APM is presented to show the
Group’s financial leverage in line with external borrowing
covenants.
Reconciliation:
Refer below
-
Interest Cover (external borrowing covenants)
EBITDA after rent (see definition xv)
divided by net interest and other finance costs paid or payable
during the year. The calculation excludes professional fees paid or
payable during the year in line with banking covenants.
Reconciliation:
Refer below
|
Reconciliation of
external borrowing covenants APMs (xv), (xvi)
|
|
Reference in
financial statements
|
2024
€’000
|
2023
€’000
|
|
|
|
|
|
|
|
Operating profit
|
|
Statement of comprehensive
income
|
158,458
|
156,143
|
|
|
|
|
|
|
|
Add back/(less):
|
|
|
|
|
|
Total adjusting items as per the
financial statements
|
|
Note 2
|
2,700
|
2,861
|
|
Depreciation of property, plant and
equipment
|
|
Note 2
|
39,316
|
32,791
|
|
Depreciation of right-of-use
assets
|
|
Note 2
|
33,727
|
30,663
|
|
Amortisation of intangible
assets
|
|
Note 2
|
252
|
650
|
|
Share-based payment expense
|
|
Note 2
|
3,615
|
5,910
|
|
Fixed lease payments
|
|
Note 14
|
(61,254)
|
-
|
|
Fixed lease costs
|
|
|
-
|
(53,531)
|
|
Pre-opening costs
|
|
Note 2
|
(1,895)
|
(497)
|
|
EBITDA relating to hotels disposed by
the Group during the covenant period
|
|
|
(914)
|
-
|
|
EBITDA after
rent
|
A
|
|
174,005
|
174,990
|
|
Net Debt (APM
vi)
|
B
|
Note 22
|
233,052
|
224,550
|
|
Net Debt to EBITDA
after rent (APM xv)
|
B/A
|
|
1.3x
|
1.3x
|
|
Other net interest and finance costs
paid
|
|
Statement of cash flows
|
14,595
|
8,726
|
|
Exclude refinancing costs
paid
|
|
|
(4,430)
|
-
|
|
Other adjustments required by external
borrowing covenants
|
|
|
(201)
|
258
|
|
Other net interest and finance costs
per external borrowing covenants
|
C
|
|
9,964
|
8,984
|
|
Interest Cover (APM
xvi)
|
A/C
|
|
17.5x
|
19.5x
|
-
Hotel EBITDA (after rent) from leased portfolio
‘Segmental EBITDAR’ (see definition iv)
from leased hotels less the sum of variable lease costs and fixed
lease payments relating to leased hotels. This excludes variable
lease costs and fixed lease payments relating to majority, or
effectively owned hotels. This APM is presented to show the net
operational contribution from the Group’s leased hotel portfolio
after lease costs.
Reconciliation:
Refer below
-
Rent Cover
‘Segmental EBITDAR’ (see definition iv)
from leased hotels divided by the sum of variable lease costs and
fixed lease payments relating to leased hotels. This excludes
variable lease costs and fixed lease payments that do not relate to
fully leased hotels. This APM is presented to show the Group’s
ability to meet its lease commitments through the net operational
contribution from its leased hotel portfolio.
Reconciliation:
Refer below
|
Reconciliation of
APMs (xvii), (xviii)
|
|
Reference in
financial statements
|
2024
€’000
|
2023
€’000
|
|
|
|
|
|
|
|
‘Segmental EBITDAR’ from leased
hotels
|
A
|
Note 2
|
101,740
|
96,350
|
|
|
|
|
|
|
|
Variable lease costs
|
|
Note 2
|
2,644
|
3,630
|
|
Fixed lease payments
|
|
Note 14
|
61,254
|
53,498
|
|
Total variable and fixed lease
costs
|
|
|
63,898
|
57,128
|
|
Exclude variable and fixed lease costs
not relating to fully leased hotels
|
|
|
(2,518)
|
(2,267)
|
|
Variable and fixed lease costs from
leased hotels
|
B
|
|
61,380
|
54,861
|
|
Hotel EBITDA (after
rent) from leased portfolio (APM xvii)
|
A-B
|
|
40,360
|
41,489
|
|
Rent Cover (APM
xviii)
|
A/B
|
|
1.7x
|
1.8x
|
Glossary
Revenue per
available room (RevPAR)
Revenue per available room is
calculated as total rooms revenue divided by the number of
available rooms, which is also equivalent to the occupancy rate
multiplied by the average daily room rate achieved. This
is a commonly
used industry metric which facilitates comparison
between companies.
Average Room
Rate (ARR) - also Average Daily Rate (ADR)
ARR is calculated as rooms revenue
divided by the number of rooms sold. This is a commonly
used industry metric which facilitates comparison
between companies.
‘Like for
like’ hotels
‘Like for like’ or ‘LFL’ analysis
excludes hotels that newly opened or ceased trading under Dalata
during the current or comparative periods. Clayton Whites Hotel,
Wexford is also excluded from ‘like for like’ analysis as the hotel
was sold in January 2025. For newly acquired, previously operating
hotels, where pre-acquisition data is available, these hotels are
included on a ‘like for like’ basis for analysis. ‘Like for like’
metrics are commonly used industry metrics and provide an
indication of the underlying performance.
Segmental
EBITDAR margin
Segmental EBITDAR margin represents
‘Segmental EBITDAR’ as a percentage of revenue for the following
Group segments: Dublin, Regional Ireland, the UK and Continental
Europe. Also referred to as Hotel EBITDAR margin.
Effective tax
rate
The Group’s tax charge for the year
divided by the profit before tax presented in the consolidated
statement of comprehensive income.
Fixed lease
costs
Fixed costs incurred by the lessee for
the right to use an underlying asset during the lease term as
calculated under IAS 17 Leases.
Hotel
assets
Hotel assets represents the value of
property, plant and equipment per the consolidated statement of
financial position at 31 December 2024.
Refurbishment
capital expenditure
The Group typically allocates
approximately 4% of revenue to refurbishment capital expenditure to
ensure the portfolio remains fresh for its customers and adheres to
brand standards.
Balance Sheet
Net Asset Value (NAV) per Share
Balance Sheet NAV per Share represents
net assets per the consolidated statement of financial position
divided by the number of shares outstanding at year end.
