Half Year Results Presentation – September 2014
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 exercises. 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
Half Year 2014 Performance Summary � Successful completion of IPO in March raising €256m net of costs � Revenues up 31% on H1 2013 � EBITDA up from €0.9m in H1 2013 to €2.4m � Projecting EBITDA to be in range of €7.5m to €8.0m for full year 2014 � Completed acquisitions of Pearse Street Hotel and Maldron Parnell Square Hotel for €29.7m � Announcing today the acquisition of the Tower Hotel in Derry for £4.375m � On track with timing and strategy as outlined at IPO 3
Corporate Background Company Overview and History Geographical location of hotels in Ireland & UK � Oct 2005: Jurys Doyle Hotel Group taken private – Pat McCann, CEO � Jun 2007: Jurys Inn division sold to Quinlan Private, remaining 4 and 5 star hotels rebranded as the Doyle Collection � Aug 2007: Led by Pat McCann and some of the Jurys Doyle management team, 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. � Current Portfolio of 39 hotels — Ireland: 12 in Dublin; 24 in remainder of Ireland spread across 14 counties — UK: Maldron Hotel Cardiff, Maldron Hotel Belfast, Tower Hotel Derry — Total of over 5,800 rooms 4
Current Hotel Portfolio Circa 48% of room capacity is in the Dublin area Management Agreements Receivers Owned Properties Management Agreements - Directly with Owners Hotel Rooms Hotel Rooms Hotel Rooms Maldron Hotel Parnell Square Maldron Hotel Citywest (Dublin) 129 Maldron Hotel Belfast (Northern 126 104 (Dublin) Ireland) Cavan Crystal Hotel 85 Maldron Hotel Pearse Street 101 BEST WESTERN PLUS Academy Plaza Citywest Hotel, Conference, Leisure & Golf 304 770 Hotel (Dublin) Resort (Co Dublin) ** Maldron Hotel Limerick 143 Clayton Hotel Galway 195 Tower Hotel Derry 93 Shamrock Lodge Hotel (Co Westmeath) 51 Diamond Coast Hotel (Co Sligo) 92 TOTAL 463 The Belvedere Hotel (Dublin) 92 Portlaoise Heritage Hotel (Co Laois) 110 % Dublin 49% Nuremore Hotel & Country Club (Co The Heritage Golf & Spa Resort (Co Laois)** 98 72 Monaghan) Lease Agreements Whites of Wexford 157 Aghadoe Heights Hotel & Spa (Co 74 Hotel Rooms Westlodge Hotel (Co Cork) 90 Kerry) Maldron Hotel Cardiff Lane Clarion Hotel Sligo 162 TOTAL 697 304 (Dublin) Clonmel Park Hotel (Co Tipperary) 99 % Dublin 57% Maldron Hotel Smithfield (Dublin) 92 Springhill Court Hotel (Kilkenny) 85 Maldron Hotel Tallaght (Dublin) 119 Fels Point Hotel Tralee (Co Kerry) 165 Maldron Dublin Airport Hotel* 247 Pillo Hotel Ashbourne (Co Meath) 148 Maldron Hotel Cork 101 Pillo Hotel Galway 90 Maldron Hotel Galway 113 Hotel Ballina (Co. Mayo) 87 Maldron Hotel Portlaoise 90 Dundrum House Hotel (Co Tipperary) 68 Maldron Hotel Wexford 108 Creggan Court (Co Westmeath)** 70 Maldron Hotel Cardiff (Wales) 216 Ballsbridge Hotel (Dublin) 392 Total 2700 Clyde Court Hotel (Dublin) 185 % Dublin 33% TOTAL 1967 ** Sale agreed % Dublin 68% * Operating agreement 5
Strong Underlying Growth Summary Highlights � Total revenue increased by 31% driven by Interim Interim Full year � 6 months 6 months 12 months Additional management contracts 30 June 30 June 31 Dec � Addition of Tallaght (lease) and Dublin Airport 2014 2013 2013 (operating agreement) €’000 €’000 €’000 Unaudited Unaudited Audited � Solid organic growth across the business Key Financials � EBITDA increased from €0.9m to €2.4m Revenue 34,950 26,762 60,617 � €0.7m from leased and owned hotels Segments EBITDAR 12,013 8,601 22,447 � €1.2m from managed hotels Rent (7,983) (6,518) (13,828) � €0.4m increase in central overhead Segments EBITDA 4,030 2,083 8,619 � Underlying growth drivers: Central Overheads (1,615) (1,192) (3,279) � Increased international visitors to Ireland, up 9.9% Jan to July 2014 EBITDA 2,415 891 5,340 � Strong event and corporate activity in Dublin � Improving domestic consumer sentiment Seasonal patterns have a significant impact on the business. throughout the country � � Central costs up €0.4m as a result of recruitment of In 2013 83% of EBITDA was recorded in H2 as the key staff in Acquisitions and Development, Finance, rate of growth increased Operations and Marketing � This year 68% - 70% of full year EBITDA is expected to be recorded in H2 6
Leased Hotels Performed Strongly Leased and Owned Hotels Highlights � Total revenue up 28% Interim Interim Full year 6 months 6 months 12 months � Like for like revenue up 7.6% 30 June 30 June 31 Dec � EBITDAR margin up from 27.6% to 28.4% 2014 2013 2013 €’000 €’000 €’000 � Like for like margin up from 27.6% to 29.5% Unaudited Unaudited Audited driven by improved room rates � This increase offset by a different business mix Revenue 32,034 25,093 55,447 at Tallaght and Airport hotels EBITDAR 9,097 6,932 17,277 � Total rent up €1.5m � Rent (7,983) (6,518) (13,828) additional rent in Tallaght / Airport � EBITDA 1,114 414 3,449 offset by restructuring of leases in existing properties; all historic leases now renegotiated Key Performance Indicators – Ireland (like for like) on sustainable terms Occupancy 71.3% 71.7% 76.1% � Like for like Irish revenue up 5.6% Average Rate €75.32 €67.26 €70.92 � Like for like RevPAR up 11.4% RevPAR €53.69 €48.20 €53.94 � Food sales down 6% � Better rooms mix ; movement away from � RevPAR up 11.4% on a ‘like for like’ basis inclusive packages. � Occupancy down 0.5% due to refurbishment � Refurbishment disturbance at two disturbance at two properties properties � Average rates up €8 or 12% � Cardiff performed strongly with revenue up 21% 7
Managed Hotels Hotel management services Hotel management services Highlights � Income from managed properties up 75% Interim Interim Full year 6 months 6 months 12 months � Significant net increase in properties under 30 June 30 June 31 Dec management 2014 2013 2013 €’000 €’000 €’000 � Q2 2013 – 5 properties Unaudited Unaudited Audited � Q3 2013 – Acquisition of Fonteyn Property Key Financials Holdings (3 properties) Revenue 2,916 1,669 5,170 � Q1 2014 – 6 properties � The number of hotels under management is Segment EBITDA 2,916 1,669 5,170 expected to decline in the short term with Contribution to Central Overhead several properties in receivership currently for � sale, including three hotel that are now ‘sale No central overhead is allocated directly to agreed’. managed services segment. 8
Balance Sheet Transformation Summary Highlights � The balance sheet is transformed as a result of 30 June 31 Dec net €256m raised at IPO 2014 2013 €’000 €’000 — Shareholder loans were converted to equity Unaudited Audited and €9.0m of bank loans were repaid. Non-current assets 31,873 12,927 — Property additions of €18.2m include Current Assets � 14 rooms at Maldron Cardiff Lane Trade receivables and inventory 10,588 6,580 � Acquisition of Maldron Parnell Square Cash and cash equivalents 234,623 4,940 � Deposit for Pearse Hotel acquisition 245,211 11,520 — €0.9m was invested in scheduled refurbishment works Total Assets 277,084 24,447 � Movements in Working capital reflect the addition of Dublin Airport, Tallaght and Pillo Equity 262,360 (50,248) Hotels and significant seasonal variation Shareholder loans & accrued interest 0 54,725 between the months of December and June Bank loans 0 9,000 Trade and other payables 14,724 10,970 Total Equity and Liabilities 277,084 24,447 9
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