DAVY VIEW

Dalata updated on FY24 trading this morning. In what was a more challenging year for market wide RevPAR growth, Dalata expects to deliver aEBITDA in excess of €232m, +4% year-on-year (yoy). The CEO notes that he looks forward to the year ahead with optimism, highlighting the initial strong performance of the four hotels it opened this year. Importantly, given the correlation between Dublin airport passenger numbers and Dublin RevPAR, he notes that the temporary removal of the Dublin airport passenger cap is expected to lead to passenger growth of 4% in 2025. We make small housekeeping changes to our forecasts and expect the combination of underlying RevPAR growth, maturity effects of recently added hotels and the benefit of new rooms to drive 6% EBITDA growth in 2025.