Berenberg stays at 'buy' on Dalata Hotels
By Iain Gilbert
Date: Wednesday 18 Dec 2024
(Sharecast News) - Analysts at Berenberg reiterated their 'buy' rating and 480.0p target price on Dalata Hotels on Wednesday, stating the group was "ending the year on a high note".
Dalata Hotels announced a solid FY24 trading update on Wednesday, with the company stating it expects adjusted underlying in excess of €232.0m for the year - reflecting 4% growth year-on-year. FY24 group revenue per available room growth was expected to be 1% ahead of FY23 on a like-for-like basis, with November and December 3.5% ahead year-on-year.
Berenberg stated that given that at the time of its interim results, Dalata had seen LFL RevPAR fall by 1%, its FY performance demonstrated "a robust H2 performance".
"Looking into 2025, while Dalata will experience cost inflation (with hotel payroll costs expected to increase 5% lfl), considering the company's track record of protecting margins, we remain confident in its ability to grow EBITDA yoy," said Berenberg.
The German bank added that with management's "exceptional track record of creating value for shareholders" and the company's attractive pipeline - which should drive further growth - it remains confident in the outlook for Dalata.
Reporting by Iain Gilbert at Sharecast.com
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