Full Year Results Presentation March 2015 Disclaimer This - PowerPoint PPT Presentation

Full Year Results Presentation – March 2015

Disclaimer This presentation document (hereinafter “this document”) has been prepared by Dalata Hotel Group plc (“ 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 presentation. 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. 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. 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

Contents Page: Section: 4 I. Highlights 9 II. Financial Performance 14 III. Market Backdrop 17 IV. Moran Bewley’s Hotel Group 24 V. Enlarged Group Appendix 3

Section I : Highlights 4

Highlights Financial Highlights  Successful completion of IPO in March 2014 raising € 256m net of costs  Strong operating performance with revenue up 30.4% in 2014  EBITDA of € 6.1m, up 14.2% on 2013  EBITDA (excluding impacts of acquisitions) rose by 54% to € 8.23m Operational Highlights  Group RevPAR up 15.7% on a ‘like for like’ basis driven by 13.4% increase in ARR  Completed acquisition of three hotels for total consideration of € 35m  Invested € 3.5m in ongoing capital refurbishment of leased hotels  IPO proceeds invested 12 months ahead of schedule Post Year End Highlights  Since year end, completed transformational acquisition of 9 Moran Bewley hotels for a total consideration of € 453m  Also completed acquisition of three further hotels for € 42m: Clayton Hotel Galway, Whites Hotel Wexford and Pillo Hotel Galway  Integration of all new acquisitions well underway  Announcing today the acquisition of Holiday Inn Hotel in Belfast for £18.5m  New Clayton brand being rolled out to 13 of our hotels within next 6 months  Raised a further € 48.6m net of costs and negotiated a term loan facility of € 282m to part fund the hotel acquisitions 5

Acquisitions Summary Maldron Parnell Square, Dublin Clayton Hotel, Galway Pillo Hotel, Galway 19 March 2014 Admission to AIM and ESM Purchase Price: € 15.3m Purchase Price: € 16.5m Purchase Price: € 10.5m 3 star hotel with 126 rooms 4 star hotel with 195 rooms 4 star hotel with 104 rooms Mar Apr May Jun Jul Aug Sep Oct Nov Feb ‘14 ‘14 ‘14 ‘14 ‘14 ‘14 ‘14 ‘14 ‘14 ‘15 Moran Bewley’s Hotel Group Maldron Pearse Street, Dublin Maldron Hotel Derry, Derry City Whites Hotel, Wexford Purchase Price: € 453m Purchase Price: € 14.4m Purchase Price: £4.4m Purchase Price: € 15.2m 9 hotels with 2,506 rooms 3 star hotel with 101 rooms 3 star hotel with 93 rooms 4 star hotel with 157 rooms 6 6

Holiday Inn Belfast • 170 bedroom full 4 star Holiday Inn - £18.5m – Full leisure centre with pool; 40 car spaces • Central Belfast location (Ormeau Ave) – First Dalata owned property in Belfast City – Large urban zone pop > 640k (EU definition) – Circa 47% of visitors from Republic of Ireland • IRR > 15% – 2014 EBITDA of £1.4m – initial yield of 7.6% – Will deliver immediate operating efficiencies – Revenue opportunities identified – Target yield by end Year 2 (10%) – Cost per room < £110k 7

Enlarged Dalata Group Hotel Portfolio Owned Hotels Management Agreements Hotel Rooms Hotel Rooms Maldron Hotel Parnell Square, Dublin 126 With Receivers 1,043 Maldron Hotel Pearse Street , Dublin 101 Diamond Coast Hotel, Co . Sligo 92 Maldron Hotel Derry, Co. Derry 93 Portlaoise Heritage Hotel, Co .Laois 110 Clayton Hotel Oranmore, Co. Galway 195 Westlodge Hotel, Co. Cork 90 Clayton Whites Hotel, Wexford 157 Clarion Hotel Sligo, Co. Sligo 162 Maldron Hotel Galway, Co. Galway 104 Clonmel Park Hotel, Co. Tipperary 99 Clayton Hotel Cardiff Lane , Dublin (7 suites) 20 Fels Point Hotel Tralee, Co. Kerry 165 Clayton Hotel Dublin Airport 466 Pillo Hotel Ashbourne, Co. Meath 148 Clayton Hotel Ballsbridge , Dublin 304 Hotel Ballina, Co. Mayo 87 Clayton Hotel Leopardstown, Dublin 354 Dundrum House Hotel, Co. Tipperary 68 Maldron Hotel Newlands Cross, Dublin 299 Ten Square Hotel, Belfast 22 Clayton Silver Springs Hotel, Co. Cork 109 Directly with Owners 975 Clayton Hotel Chiswick, London 123 Cavan Crystal Hotel, Co. Cavan** 85 Clayton Crown Hotel, London 152 Maldron Hotel, Belfast 104 Clayton Hotel Leeds 334 Best Western Plus Academy Plaza Hotel, Dublin 304 Holiday Inn Hotel, Belfast 170 Shamrock Lodge Hotel, Co. Westmeath 51 The Belvedere Hotel, Dublin 92 TOTAL 3,107 Nuremore Hotel & Country Club, Co. Monaghan 72 % Dublin 54% Fitzwilton Hotel, Co. Waterford 89 Aghadoe Heights Hotel & Spa (Co Kerry) 74 Shearwater Hotel, Ballinasloe, Co. Galway 104 Lease Agreements Total 2,018 Hotel Rooms % Dublin 20% Clayton Hotel Cardiff Lane , Dublin 284 Maldron Hotel Smithfield, Dublin 92 Maldron Hotel Tallaght ,Dublin 119 Summary by Hotel Category Hotels Rooms Maldron Hotel Galway 113 Maldron Hotel Cork 101 Owned 15 3,107 Maldron Hotel Portlaoise 90 Leased 13 2,455 Maldron Hotel Wexford 108 Maldron Hotel Limerick 143 Mgmt Agreement – Receivers 10 1,043 Clayton Hotel Cardiff , Wales 216 Mgmt Agreement – Owners 9 975 Maldron Dublin Airport Hotel* 247 Ballsbridge Hotel, Dublin 392 TOTAL 47 7,580 Clyde Court Hotel , Dublin 185 Clayton Hotel Manchester Airport 365 * Not a leasehold interest, operated under an operating agreement with the landlord TOTAL 2,455 ** Previously operated under a management agreement with a receiver % Dublin 54% 8

Section II : Financial Performance 9

Overall Summary Summary Highlights  Total revenue increased by 30.4% driven by Full year Full year – 12 months 12 months The addition of two new leased properties in 31 Dec 31 Dec Nov 2013 & Jan 2014 2014 2013 – 10.8% increase in revenues in leased hotels on €’000 €’000 Audited Audited a ‘like for like’ basis Key Financials – 5.4% increase in income from management properties Revenue 79,073 60,617  Segments EBITDAR increased by 32% to € 29.6m on Segments EBITDAR 29,637 22,447 back of strong conversion of revenues to EBITDAR Rent (16,221) (13,828) which grew margin from 31.1% to 32.8% for owned Segments EBITDA 13,416 8,619 & leased properties Central Overheads (7,319) (3,279)  € 2.27m of central overhead relates to professional EBITDA 6,097 5,340 fees on acquisition activities; € 0.55m relates to stamp duty on the acquisitions of Maldron Pearse EBITDA (excluding impact of acquisitions) 8,230 5,340 Street and Derry hotels. Excluding these factors, central overheads increased by € 1.2m reflecting a KPIs 2014 2013 planned investment in central office team, to support the enlarged group. Occupancy 75.3% 73.8%  EBITDA grew 54% to € 8.23m (excluding the impact Average Room Rate ( € ) 76.4 68.3 of acquisitions) RevPAR ( € ) 57.5 50.4 10

Leased & Owned Hotels Leased and Owned Hotels Highlights  Total revenue up 32.8% Full year Full year 12 months 12 months  Like for like revenue up 10.8% driven by 15.7% 31 Dec 31 Dec increase in RevPAR 2014 2013 €’000 €’000 – Dublin RevPAR up 14.9% Audited Audited – Regional Ireland RevPAR up 12.7% – Cardiff RevPAR up 16.1% on constant currency Revenue 73,626 55,447 basis EBITDAR 24,190 17,277  Food sales up only 1.2% reflecting strategy of switching to ‘room only’ rates Rent (16,221) (13,828)  EBITDAR margin up from 31.1% to 32.8% due to EBITDA 7,969 3,449 strong conversion of increased RevPARs and higher Dublin – Like For Like 2014 2013 proportion of Dublin hotels  Occupancy 81.3% 81.5% Rent increased by € 2.4m for a combination of reasons: Average Room Rate ( € ) 84.5 73.4 – Entered into new leases in Maldron Dublin RevPAR ( € ) 68.7 59.8 Airport (Jan 14) and Tallaght (Dec 13) – Regional Ireland – Like for Like 2014 2013 Additional performance related rent in Ballsbridge & Clyde Court hotels Occupancy 62.3% 58.3% – Purchase of Maldron Parnell Square freehold Average Room Rate ( € ) 61.8 58.4 in Aug resulted in € 0.4m saving in rent RevPAR ( € ) 38.5 34.1 – Restructuring of leases in existing properties resulted in rent savings 11