Dalata Hotel Group January 2018 ISE: DHG LSE: DAL Disclaimer - PowerPoint PPT Presentation

Dalata Hotel Group January 2018 ISE: DHG LSE: DAL

Disclaimer The presentation contains forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this presentation. Due to inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward looking statements. The Directors undertake no obligation to update any forward looking statements contained in this presentation, whether as a result of new information, future events or otherwise. Page 2

Dalata | Contents Group Overview Market Update UK Research & Strategy 2018 Page 3

Group Overview

Dalata | Strong, Complementary Brand Proposition Maldron is all about providing a fun, relaxed time for all You can always depend on Clayton Hotels to deliver who arrive through our doors. Our great-value hotels are exactly what you need, whether that’s a weekend found in convenient locations close to local attractions - away, a family break or an important business meeting. Brand ensuring there’s always plenty to see and do. With friendly, From the comfort of our bedrooms to the quality of helpful staff, good food and excellent facilities, it’s the our facilities and the warm, helpful attitude of our staff Proposition Pr perfect place to enjoy good times with family and friends - every detail is handled with care Rest assured, it’s a Maldron Where every moment matters Generally standard rooms, with family and executive rooms Bed edrooms Standard, superior and executive rooms in some locations Food ood an and Modern bar, restaurant and coffee dock. Food and Integrated bar and restaurant in some locations. Simple beverage offering based on local influences and freshly Beverage menus made from fresh quality produce sourced premium ingredients Conf onference Extensive choice of modern meeting rooms and events Meeting room facilities Fac acilities facilities Tar arget Both leisure and corporate with main focus on leisure Focus on corporate and conference midweek. Leisure, Cust ustomers guests and family functions and weddings at weekend Page 5

Dalata | 3 Core Business Segments – H1 2017 Dublin 57% Group Revenue 60% Segment EBITDA 48% 14 Hotels 3,699 Rooms H1 2017 RevPAR: € 96.36(+8%) EBITDAR Margin Regional Ireland 21% Group Revenue 15% Segment EBITDA 24% 12 Hotels 1,643 Rooms H1 2017 RevPAR: € 60.93(+9%) EBITDAR Margin UK * 21% Group Revenue 23% Segment EBITDA 38% 7 Hotels 1,557 Rooms H1 2017 RevPAR: £63.72(+15%) EBITDAR Margin * Excludes Croydon Park Hotel Information as at period end Page 6

Dalata | Owned & Leased Portfolio at January 2018 Lease Agreements ts Own wned d Ho Hote tels / Freehold d Equiv ivalent Hotel Ho Room oms Ho Hotel Room oms Clayton Hotel Burlington Road, Dublin 502 Clayton Hotel Dublin Airport 504 Ballsbridge Hotel, Dublin 400 Clayton Hotel Manchester Airport 365 The Gibson Hotel, Dublin 252 Maldron Hotel Dublin Airport 251 Clayton Hotel Leopardstown, Dublin 354 Clayton Hotel Cardiff, Wales 216 Clayton Hotel Leeds 334 Hotel La Tour Birmingham 174 Clayton Hotel Ballsbridge, Dublin 304 Maldron Hotel Tallaght, Dublin 119 Clayton Hotel Cardiff Lane , Dublin (1) 304 Maldron Hotel Galway (Oranmore) 113 Maldron Hotel Newlands Cross, Dublin 297 Maldron Hotel Smithfield, Dublin 92 Clayton Hotel Liffey Valley 261 Tota tal 2, 2,119 Clayton Hotel Chiswick, London 227 New w pipe pelin ine Clayton Hotel Cork City (2) 201 Ho Hotel Room oms Own wned Clayton Hotel Galway 195 Clayton Hotel Charlemont, Dublin 188 Clayton Hotel Belfast 170 Maldron Hotel Kevin Street, Dublin 138 Clayton Hotel Sligo 162 Maldron Hotel South Mall, Cork 164 Clayton Whites Hotel, Wexford 160 Maldron Hotel Belfast City 237 Clayton Hotel Limerick 158 Clayton Hotel Ballsbridge, Dublin 31 Clayton Crown Hotel, London 152 Clayton Hotel Dublin Airport 106 Maldron Hotel Limerick 142 Maldron Hotel Parnell Square, Dublin 53 Maldron Hotel Sandyroad, Galway 64 Maldron Hotel Parnell Square, Dublin 129 Leased Maldron Hotel Pearse Street, Dublin 115 Maldron Hotel, Newcastle 265 Tara Towers Hotel, Dublin 111 Clayton Hotel, Manchester 300 Clayton Hotel Silver Springs, Cork 109 Clayton Hotel, Glasgow 300 Maldron Hotel Wexford 108 Tota tal 1,846 1, Maldron Hotel Sandyroad, Galway 104 Sum ummary by y Ho Hotel Cate tegor ory Ho Hotels Room oms Maldron Hotel Cork 101 Owned 26 5,250 Leased 9 2,119 Maldron Hotel Derry 93 New pipeline 7 1,846 Maldron Hotel Portlaoise 90 Mgmt Agreement – Owners 3 308 Tota tal 5,250 5, Tota tal 45 45 9, 9,523 (1) Dalata own 252 rooms and lease 52 rooms Page 7 (2) Dalata own 194 rooms and lease 7 apartments

Dalata | Strong Balance Sheet providing covenant for growth Objective is to maintain a strong balance sheet with All figures € m 30 June 31 Dec appropriate level of gearing, leading to a strong covenant 2017 2016 for potential landlords/investors Non-current assets Decrease in Net Debt to Amended EBITDA to 1.91 91x from Tangible assets 829.5 825.7 2.40x Goodwill and intangibles 54.7 54.3 £174.4m ( € 198.3m) of borrowings in Sterling as a natural Other 11.7 6.6 hedge against value of Sterling assets and Sterling Current assets denominated earnings Trade receivables, 25.9 17.7 inventory and other Combination of strong cashflow, cash balance, undrawn facilities and low gearing provides a Balance Sheet to Cash 88.9 81.1 comfortably fund current expansion plans Total assets 1,010.7 985.4 Equity 652.8 620.4 Bank loans 267.5 280.4 Trade and other payables 58.6 53.1 Other non current liabilities 31.8 31.5 Total equity and liabilities 1,010.7 985.4 Page 8

Dalata | “The Difference with Dalata” Our dec decentral alised ope operational app approach Dalata’s dec decentral alised st structure is core to our management philosophy Hotel General Managers are critical players – we continually develop them A strong multi-functional team at the centre setting direction, seeking growth opportunities, supporting the hotels, and reporting to our stakeholders We We grow our own – training and development a major focus as there is a need to have a strong pipeline of key people coming through Having people we know taking up key roles de-risks our business We We focus on on what at we we ar are go good at at Operating 3 star and 4 star modern well-maintained hotels in cities with strong mix of corporate and leisure demand Executing transactions to grow our owned and leased portfolio Identifying strong locations and developing new hotels on them Decentralised revenue management – our revenue managers are informed by systems but always make the dec decisions themselves Investing in systems to support our app approach to to cos ost control Owner/Operator Mod odel Control of our brand standards Security of tenure allows us to build a central team to effectively support and scale our decentralised structure Page 9

Drive Portfolio Growth | Ireland Ir Irel eland: Portfolio lio Obje bjectives Complete existing development pipeline of of 744 rooms and deliver on earnings potential when they open in 2018 Reach the optimum market share in each of the key urban centres – Dublin, Cork, Limerick and Galway Page 10

Dalata | Over 1,840 new rooms across Ireland and UK Propert rty New Ne Extensio ion Roo ooms Plannin ing Con onstructio ion Com ompletion on Dublin Granted Started 2 New Hotels Clayton Hotel Charlemont x 188 x x Nov 2018 3 Extensions Maldron Hotel Kevin Street x 138 x x June 2018 Clayton Hotel Ballsbridge x 31 x x Aug 2018 516 rooms Clayton Hotel Dublin Airport x 106 x x May 2018 Maldron Hotel Parnell Square x 53 x x Dec 2018 Reg egional al Ir Irel eland Plannin ing Propert rty New Ne Extensio ion Roo ooms Con onstructio ion Com ompletion on 1 New Hotel Granted Started Maldron Hotel South Mall, Cork x 164 x x Dec 2018 1 Extension Maldron Hotel Sandyroad, Galway x 64 x x June 2018 228 Rooms UK UK Plannin ing Propert rty New Ne Extensio ion Roo ooms Con onstructio ion Com ompletion on 1 New Owned Hotel Granted Started x 237 x x Mar 2018 Maldron Hotel Belfast City 3 New Leased Hotels x 265 x x Feb 2019 Maldron Hotel, Newcastle* 1,102 Rooms x 300 Q3 2020 Clayton Hotel, Manchester* x 300 Q4 2020 Clayton Hotel, Glasgow* *35 year operating lease Page 11

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