Dalata Hotel Group December 2016
Disclaimer IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the attached document, and you are therefore advised to read this disclaimer carefully before reading, accessing or making any other use of it. In accessing the attached document, you agree to be bound by the following terms and conditions, including any modifications to them from time to time, each time you receive any information from us as a result of such access. You acknowledge that this document is confidential and is solely for your information and intended for you only, and you agree you will not forward, reproduce (in whole or in part), disclose or publish this document to any other person. This presentation document (hereinafter "this document") has been prepared by Dalata Hotel Group p.l.c. ("Dalata" or "the Company") for information purposes only. This document has been prepared in good faith but the information contained in it has not been the subject of a verification exercise. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its respective shareholders, directors, officers, employees, advisers, agents or any other person as to the accuracy, fairness, or sufficiency of the information, projections, forecasts, or opinions contained in this document, in particular, some of the market data in this document has been sourced from third parties. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions contained in this document. No investment decision should be made on the basis of this document and no reliance may be placed for any purpose whatsoever on the information or opinions contained in this document, or on their completeness, accuracy or fairness. Certain information contained herein constitutes "forward looking statements", which can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "intend", "target", "believe" (or the negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or actual performance of the Company may differ materially from those reflected or contemplated in such forward looking statements. By their nature, forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results because they depend on future circumstances, and relate to events, not all of which are within the Company's control or can be predicted by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. No representation or warranty is given as to the completeness or accuracy of the forward- looking statements contained in this document. Actual results could differ materially from those set out in the forward-looking statements. Nothing in this document should be construed as a profit forecast and no part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company, and must not be relied upon in any way in connection with any investment decision. No representation or warranty is made as to the achievement or reasonableness of and no reliance should be placed on such forward looking statements. 2 2
Disclaimer (continued from previous page) Nothing in this document shall be relied upon as a promise or representation in this respect, whether as to the past or the future. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts. No person has been authorised to give any information or make any representation other than those contained in this document, and if given and/or made, such information or representation must not be relied upon as having been so authorised. There is no obligation on any person to update this document, correct any inaccuracies which may become apparent or to publicly announce the result of any revision to the statements made herein except to the extent that they would be required to do so under applicable law or regulation. To the extent permitted by law, no responsibility or liability whatsoever is accepted by the Company or any member of its group or any of such persons' directors, officers, employees or affiliates or any other person for any loss howsoever arising, directly or indirectly, from any use of this document or such information or opinions contained herein or otherwise arising in connection herewith. Except where otherwise indicated herein, the information provided in this document is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect Information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. Neither the receipt of this document nor any information contained in it or supplied with it or subsequently communicated to any person in connection with this document either constitutes, or is taken as constituting, the giving of legal, financial, business or tax advice to any person and this document does not take into account the particular investment objectives, financial situation, taxation position or needs of any person. 3 3
Contents Company Overview & History Market Backdrop Acquisition and Development Projects Update Strategy Highlights and H1 2016 Financial Results Appendices 4 4
Company Overview and History � Aug 2007: Led by Pat McCann, Dalata Hotel Group Ltd established to acquire an operating business of 11 leased hotels in Ireland from Choice Hotels Ireland. � Mar 2009: Dalata Management Services Limited set up to provide operational and management expertise to hotel asset owners and funders. � Mar 2014: Dalata Hotel Group floats on ESM (Dublin) and AIM (London) and raises € 265m to purchase hotel assets. � June - Feb 2015: Dalata completes the acquisition of six separate hotels in Ireland for € 78m. � Feb 2015: Dalata completes the acquisition of 9 hotels from Moran Bewley Hotel Group for € 452m and raises € 282m in debt and € 50m in equity to part fund the transaction. � Mar/Apr 2015: Dalata completes the acquisition of two further hotels for € 29m � Oct 2015: Company raises € 160m in equity and € 90m in debt. � Nov 2015 to date: € 206m spent on the acquisition of hotel development sites as well as freehold and leasehold hotels. � June 2016: Dalata moves to main listing on Irish and London Stock Exchanges. � November 2016: In partnership with Deka, Dalata enters into 25 year lease to operate 502 room Clayton Burlington Hotel 5 5
Geographical Breakdown of the Group for H1 2016 % of Total Revenue % of Total Segment EBITDA H1 2016 H1 2016 3.3% 24.4% 24.2% 52.5% 59.3% 13.2% 22.1% Dublin Regional Ireland UK Mgt Fees Dublin Regional Ireland UK Mgt Fees 6
Market Backdrop 7
Irish & UK Hotel Market Performance RevPAR Growth RevPAR Growth Jan-Dec 2015 Jan- Sept 2016 Dublin 23.4% 19.4% Belfast 11.9% 5.0% Cork 9.6% 15.0% Galway 13.3% 10.6% Limerick 23.4% 16.7% Source STR Global & Trending.ie Cities in ROI continue to perform strongly. Belfast had very strong Q3 with revpar up over 20% RevPAR Growth RevPAR Growth Jan-Dec 2015 Jan- Sept 2016 London 1.5% -1.9% Manchester 7.2% 7.1% Cardiff 14.2% 0.7% Leeds 8.0% 4.5% Source STR Global Provincial UK cities in which we operate had a very positive first 9 months, Cardiff back in Sept due to Rugby World Cup impact in 2015. London has been impacted by an increase in supply and terrorist attacks in Europe but Q3 was more positive with growth in both July & Sept. Impact of Brexit will be watched carefully over the coming months 8
Per STR: Highest Occupancy in Europe and 11th in ARR Occupancy Rates July 2016 YTD 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Average Room Rate July 2016 YTD € 300.00 € 250.00 € 200.00 € 150.00 € 100.00 € 50.00 € 0.00 9
Dublin – Fragmented Market Catching Up with Other European Cities Dublin Market Share – Total Market of 18,800 rooms RevPAR forecasted to grow strongly until 2018 Dalata is market leader with 19% in fragmented competitive Forecasts Per STR market – Limited international brands. 2015 2016 2017 2018 Actual F ’ cast F ’ cast F ’ cast Market Share Occupancy 82.0% 83.1% 83.6% 84.1% ARR 111.95 129.24 137.26 141.22 RevPAR 91.80 108.03 114.72 118.76 RevPAR % 22.8% 17.7% 6.2% 4.7% Variance Savills forecast net additional 1,265 rooms by 2018 1000 800 700 Dalata Hilton Tetrarch 600 Windward Tifco Other 305 400 260 200 0 2016 2017 2018 10 10
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