DAVY VIEW

Dalata’s operational excellence, attractive estate and recently opened rooms combined with strong pent-up demand for leisure travel delivered 2022 revenue c.20% above pre-pandemic levels. The group opened almost 2,000 rooms in 2022 and the new rooms are performing well. The balance sheet is very strong, giving Dalata scope to augment its pipeline and/or return cash to shareholders. Our analysis indicates that the market is not ascribing any value to the leasehold assets. Given (i) continued organic growth, (ii) the pipeline, (iii) the likelihood of a re-rating and (iv) balance sheet optionality, we believe Dalata is about to enter a period of strong shareholder returns.