StockMarketWire.com - Hotel operator Dalata Hotel swung to a loss as occupancy fell to a record low in the first half of the year, owing to the impact of the pandemic.

For the six-month period ended 30 June 2020, the company reported a pre-tax loss of €70.9, compared with a profit of €37.8m on-year as revenue fell 60% to €80.8m.

Occupancy fell to 34.3% from 80.2% and revenue per available room (RevPar) slumped to €32.69 from €88.48.

Record low occupancies followed during the remainder of the six-month period due to the Covid-19 pandemic. During this time, Dalata's key priorities were the protection of our people, customers and liquidity.

The company said 100% of its hotels were now re-opened and added it had signed an agreement to lease two new hotels in Brighton and Manchester, bringing its current pipeline to almost 3,300 new rooms.

'Occupancy for the group amounted to 30% in July and is projected to be approximately 40% for August,' the company said.

'While bookings from domestic guests are encouraging, the outlook for the near term remains uncertain at present with short lead time on bookings and it is not yet known when international travel will return to more normal levels,' it added.

Dalata Hotel forecasts adjusted earnings before interest, taxes, depreciated and amortization to be in the range of €7.0m to €7.5m for the July and August period.

The company also detialed plans to raise funds through the placing of about 19.9% of its shares as it sought to 'materially strengthen the group's balance sheet.'



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