DAVY VIEW

Dalata has updated on H1 trading this morning, noting that the trading environment has improved as it has entered the busier part of the year. Group like-for-like (LFL) RevPAR has improved from -4% in January to April to -1% for H1, driven by good growth of 3% in the last two months of the period. EBITDA is expected to be >€105m for the half, a little behind our forecasts given the RevPAR trajectory up to the end of April. However, the momentum in the busy part of the year is encouraging and management is positive in its outlook for the summer period. Despite a softer H1 than we anticipated, we are unlikely to make any meaningful change to our full year EBITDA forecasts owing to positive recent momentum. In the context of the recent share price weakness and attractive valuation, this is a positive update.