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ANNUAL REPORT
AND ACCOUNTS 2021 A time
to look
forward
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To grow and evolve as an innovative and sustainable
international hotel company, delivering excellence in
customer service, driven by ambitious people flourishing
within a culture of integrity, fairness and inclusion.
Our Values
►► page 79
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►► page 53
John Hennessy
►► pages 53 to 58
Dermot Crowley
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Strategic
Growth
Ambition
Market-leading performance
at existing hotels; ambitious
expansion in UK and
European markets.
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New markets
Growing the pipeline
Delivering our current pipeline
Our existing portfolio of established hotels
Growth
Drivers
Energy powering our strategic ambition
ESG
Priorities
Sustainable business model foundations
OUR CULTURE
An entrepreneurial culture founded on integrity
and fairness with empathy for our stakeholders
and the environment.
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OUR PEOPLE
Empowered to take responsibility, we reward the
energy, ambition and achievement of our people
and value the contribution of each employee.
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CUSTOMER FOCUS
Our brands evolve with customer expectations to
create a guest experience delivered personally.
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Diversity and inclusion
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Learning and development
Labour practices
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Health, safety and security
Data privacy
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INNOVATION
Challenging established norms, we foster and promote new
ideas to create value across the stakeholder experience.
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Carbon emissions
Sustainable infrastructure
Sustainable procurement
GOVERNANCE
High-functioning governance structures provide oversight,
risk management and ensure accountability.
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FINANCIAL DISCIPLINE
Clear investment criteria and disciplined capital allocation.
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Information security
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Transparency
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Inputs
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What we do
Outputs
Aggregate Payroll Costs
Adjusted EBITDA
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Contributions to our
charity partners in 2021
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Guest satisfaction rating
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Food and Beverage
Purchases
Interest paid on bank loans,
including fees
Green Fund for projects
reducing emissions
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Rent paid
►► pages 149 and 150
Revenue
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Margin
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Earnings
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Cash
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Carbon
Water
Female
Leaders
Gender Pay
Gap %
We initiated a review of ESG priorities
with input from the board, management
and stakeholders.
Management assessed priorities based on alignment with the group’s strategy,
principal risks and impact on stakeholders.
►► pages 17 to 34.
People
Planet
Society
Diversity and inclusion
Learning and development
Health, safety & security
►► page 21
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Carbon emissions
Sustainable infrastructure
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Data privacy
Sustainable procurement
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Information security
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Governance
Our priorities balance group and
stakeholder interests.
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2021 headlines
At Dalata we recognise that the group’s
success is based on creating value in all
of our stakeholder relationships.
We recognise eight stakeholder groups we believe are critical to Dalata’s success. These are grouped
into three categories: Business – those we engage with daily in every corner of our operations;
Financial – those who trust us to manage the business to provide a return on their investment;
and Societal – those we impact through our business activities, and the planet.
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Our people drive our success, reflect our culture,
and create our customer experience.
Our ESG materiality survey recognised our employees as our most important stakeholder group.
Our business model depends on the developing skills and retaining an engaged workforce to meet
the expectations of our customers and other stakeholders.
OUR
PEOPLE
OUR
CULTURE
DIVERSITY AND
INCLUSION
LEARNING AND
DEVELOPMENT
115,000
47,000
+72%
59%
40%
36%
7.0%
Graduate Success
LABOUR
PRACTICES
EMPLOYEE
WELLBEING
Delivering excellence in customer service
is at the heart of Dalata’s purpose
When we refer to customers we mean our guests and also corporate customers, tour operators,
sporting organisations, clubs, societies and many other business to business relationships. In Dalata
we aim to be easy to do business with and provide a positive experience for all customers and guests
through their journey with us.
CUSTOMER
FOCUS
DATA
PRIVACY
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445
►► page 56
HEALTH,
SAFETY AND
SECURITY
84%
Healthy supplier relationships
matter for our guest experience
and customer satisfaction.
We tender centrally for all major operational and capital goods and services contracts, and many
of our suppler relationships have developed into long-term partnerships. Our centralised order
and invoice matching and payment processes are designed for transparency and efficiency.
SUSTAINABLE
PROCUREMENT
SUPPLY CHAIN
LABOUR
The support of our financial stakeholders
ensures Dalata is financially strong and
well placed for post-pandemic recovery.
The support of our financial stakeholders for the duration of the Covid-19 pandemic, through the
investment of equity by shareholders, the extension of lending facilities by our banks and continued
support for new projects from real estate investors has ensured that the group is financially strong
and well placed for post-pandemic recovery.
OUR
GROWTH
AMBITION
37%
2,202 rooms
INNOVATION
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FINANCIAL
DISCIPLINE
OUR
GOVERNANCE
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►► pages 65 to 70.
43
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45 to 52
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TRANSPARENCY
INFORMATION
SECURITY
ANTI-
BRIBERY &
CORRUPTION
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We recognise the connection between
realising our strategic objectives and
having a positive social impact.
We identify carbon emissions and sustainable infrastructure as ESG priorities and have developed
water stewardship and waste management programmes to manage our environmental impact. We
have committed to specific carbon reduction targets by 2026 and expanded our sustainability and
climate change reporting and disclosures (see Sustainability and Climate Change ►► pages 53 to 58).
CARBON
EMISSIONS
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SUSTAINABLE
INFRASTRUCTURE
WATER
STEWARDSHIP
WASTE
MANAGEMENT
BIODIVERSITY
GOVERNMENT
& REGULATORS
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Engagement with our local communities
is part of Dalata’s decentralised
management philosophy.
Our hotels led by the general manager support their local communities from where we draw
most of our workforce as we aim to be the employer of choice in the hospitality sector.
EMPLOYABILITY
CHARITY
PARTNERSHIPS
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Group Revenue
and Earnings
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Trading Review
by Segment
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Central Costs
and Share-
Based Payments
Expense
A return to
positive free
cash flow
Central
costs
Share-
based
payments
expense
10.3
8.1
11.8
2.2
2.3
2.7
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Asset-backed
Balance Sheet
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Strong covenant for real estate investors who are
funding our growth
Security for our banking partners
Optionality to sell an asset to provide cash for
protection or re-investment
Outlook for the future
►► pages 191 to 197.
Carol Phelan
July 2021 to June 2022 | 12 months of growth
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Increasing
Increasing
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We identified ten targets (from seven of the goals)
aligned with our ESG initiatives.
The 17 Sustainable Development Goals (SDGs) lie at the heart of the United Nations 2030 agenda for
sustainable development, which was adopted by all UN Member States in 2015. We considered the
goal’s 169 targets to assess those meaningfully aligned with our ESG programme.
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European non-financial
reporting directive
Dalata complies with the European Union (Disclosure of Non-Financial and Diversity Information
by certain large undertakings and groups) Regulations 2017. In this table, we set out the group’s
response to managing its non-financial priorities and advise where further information on compliance
may be found in this report.
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Standard for Hotels and Lodging (October 2018).
SASB helps companies to identify the ESG concerns most relevant to their financial performance using
the SASB materiality finder and to disclose this information to their investors.
In 2021 we positioned climate change at
the heart of the group’s business strategy.
Education, research and engagement with our stakeholders has shifted the focal point for our climate
change response from hotel operations to the boardroom.
►► page 32).
Dalata supports the recommendations
of the TCFD
TCFD is a framework that requires companies to disclose their climate-related risks & opportunities.
Dalata is committed to providing consistent, accurate, and comparable climate-related risk
information for all stakeholders. We currently disclose climate-related risk and opportunity
information through our CDP response. We will continue to put a focus on climate-related risk
and are committed to developing our processes to meet all the recommended disclosures of
the TCFD framework.
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Our taxonomy eligible activities
Under the Taxonomy regulation, we acknowledge the requirement to identify business activities
that are Taxonomy-eligible and to disclose the percentage of Turnover, Capital (CapEx), and
Operating Expenditure (OpEx) that is attributable to these activities.
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John Hennessy
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and 88
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John Hennessy
Dermot Crowley
Shane Casserly
Carol Phelan
Margaret Sweeney
Elizabeth McMeikan
Robert Dix
Cathriona Hallahan
Gervaise Slowey
Seán McKeon
Dermot Crowley
Carol Phelan
Shane Casserly
Stephen Clarke
Anthony Murray
Rachel Cafolla
Niamh Carr
Keith Rynhart
Niall Macklin
Paul Moloney
Duncan Little
Des McCann
Conal O’Neill
Seán McKeon
Emma Dalton
Dawn Wynne
Philip O’Neill
Claire Oliver
Martha Mannion
Aine Doyle
Sharon O’Donoghue
Richard Noake
Patrice Lennon
Tony McGuigan
Adrian Sherry
Karen Halpin
Caitriona Conroy
Macarten McGuigan
Michael McCann
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.
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John Hennessy
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76
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Robert Dix
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Elizabeth McMeikan
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Margaret Sweeney
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Directors’ Remuneration Policy 2020 – 2022
Annual Remuneration Report
€’000
2022
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a.
b.
c.
€’000
2022
2021
a.
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d.
e.
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g.
h.
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Margaret Sweeney
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110
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John Hennessy
Dermot Crowley
Statement of Directors’ Responsibilities
in respect of the Annual Report and the Financial Statements
John Hennessy Dermot Crowley
Independent Auditor’s Report
Report on the audit of the financial statements
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Independent Auditor’s Report
Key audit matters: our assessment of risks of material misstatement
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Respective responsibilities and restrictions on use
Independent Auditor’s Report
Patricia Carroll
Consolidated statement of profit or loss
and other comprehensive income
Consolidated statement of financial position
John Hennessy
Dermot Crowley
Consolidated statement of changes in equity
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
1 Significant accounting policies
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Notes to the consolidated financial statements
1 Significant accounting policies (continued)
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Notes to the consolidated financial statements
1 Significant accounting policies (continued)
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Notes to the consolidated financial statements
1 Significant accounting policies (continued)
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Notes to the consolidated financial statements
1 Significant accounting policies (continued)
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Notes to the consolidated financial statements
1 Significant accounting policies (continued)
Notes to the consolidated financial statements
1 Significant accounting policies (continued)
Notes to the consolidated financial statements
1 Significant accounting policies (continued)
Notes to the consolidated financial statements
1 Significant accounting policies (continued)
Notes to the consolidated financial statements
1 Significant accounting policies (continued)
Notes to the consolidated financial statement
1 Significant accounting policies (continued)
Notes to the consolidated financial statements
2 Operating segments
Notes to the consolidated financial statements
2 Operating segments (continued)
Notes to the consolidated financial statements
2 Operating segments (continued)
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Notes to the consolidated financial statements
2 Operating segments (continued)
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2 Operating segments (continued)
Notes to the consolidated financial statements
2 Operating segments (continued)
Notes to the consolidated financial statements
3 Statutory and other information
Notes to the consolidated financial statements
4 Other income
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5 Finance costs
Notes to the consolidated financial statements
6 Personnel expenses
Notes to the consolidated financial statements
7 Share-based payments expense
Notes to the consolidated financial statements
7 Share-based payments expense (continued)
Notes to the consolidated financial statements
7 Share-based payments expense (continued)
8 Government grants and government assistance
Notes to the consolidated financial statements
8 Government grants and government assistance (continued)
Notes to the consolidated financial statements
9 Tax credit
Notes to the consolidated financial statements
9 Tax credit (continued)
10 Impairment
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Notes to the consolidated financial statements
10 Impairment (continued)
Notes to the consolidated financial statements
11 Intangible assets and goodwill
Notes to the consolidated financial statements
11 Intangible assets and goodwill (continued)
Notes to the consolidated financial statements
12 Property, plant and equipment
Notes to the consolidated financial statements
12 Property, plant and equipment (continued)
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Notes to the consolidated financial statements
12 Property, plant and equipment (continued)
Notes to the consolidated financial statements
12 Property, plant and equipment (continued)
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12 Property, plant and equipment (continued)
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Notes to the consolidated financial statements
13 Leases (continued)
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13 Leases (continued)
Notes to the consolidated financial statements
13 Leases (continued)
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Notes to the consolidated financial statements
13 Leases (continued)
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Notes to the consolidated financial statements
13 Leases (continued)
Notes to the consolidated financial statements
14 Contract fulfilment costs
Notes to the consolidated financial statements
15 Trade and other receivables
Notes to the consolidated financial statements
15 Trade and other receivables (continued)
16 Inventories
17 Cash and cash equivalents
Notes to the consolidated financial statements
18 Capital and reserves
Notes to the consolidated financial statements
18 Capital and reserves (continued)
19 Trade and other payables
Notes to the consolidated financial statements
19 Trade and other payables (continued)
20 Provision for liabilities
Notes to the consolidated financial statements
20 Provision for liabilities (continued)
21 Loans and borrowings
Notes to the consolidated financial statements
21 Loans and borrowings (continued)
Notes to the consolidated financial statements
21 Loans and borrowings (continued)
Notes to the consolidated financial statements
21 Loans and borrowings (continued)
Notes to the consolidated financial statements
21 Loans and borrowings (continued)
Notes to the consolidated financial statements
21 Loans and borrowings (continued)
Notes to the consolidated financial statements
22 Derivatives
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Notes to the consolidated financial statements
23 Deferred tax
Notes to the consolidated financial statements
23 Deferred tax (continued)
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23 Deferred tax (continued)
Notes to the consolidated financial statements
24 Financial instruments and risk management
Notes to the consolidated financial statements
24 Financial instruments and risk management (continued)
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24 Financial instruments and risk management (continued)
Notes to the consolidated financial statements
24 Financial instruments and risk management (continued)
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24 Financial instruments and risk management (continued)
Notes to the consolidated financial statements
24 Financial instruments and risk management (continued)
Notes to the consolidated financial statements
24 Financial instruments and risk management (continued)
Notes to the consolidated financial statements
24 Financial instruments and risk management (continued)
Notes to the consolidated financial statements
24 Financial instruments and risk management (continued)
Notes to the consolidated financial statements
25 Commitments
26 Related party transactions
27 Subsequent events
Notes to the consolidated financial statements
27 Subsequent events (continued)
28 Subsidiary undertakings
Notes to the consolidated financial statements
28 Subsidiary undertakings (continued)
29 Earnings per share
Notes to the consolidated financial statements
29 Earnings per share (continued)
30 Approval of the financial statements
Company statement of financial position
John Hennessy
Dermot Crowley
Company statement of changes in equity
Company statement of cash flows
Notes to the Company financial statements
1 Significant accounting policies
2 Investments in subsidiaries
Notes to the Company financial statements
2 Investments in subsidiaries (continued)
3 Trade and other receivables
4 Amounts owed by subsidiaries
5 Cash and cash equivalents
6 Trade and other payables
Notes to the Company financial statements
6 Trade and other payables (continued)
7 Amounts owed to subsidiaries
8 Share capital, share premium and merger reserve
Notes to the Company financial statements
8 Share capital, share premium and merger reserve (continued)
9 Dividends
10 Attributable profit or loss of the Company
11 Company related party disclosures
12 Commitments
Notes to the Company financial statements
12 Commitments (continued)
13 Subsequent events
14 Approval of the financial statements
Supplementary Financial Information
Alternative Performance Measures (‘APM’) and other definitions
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(i)
Adjusting items
(ii)
Adjusted EBITDA
(iii)
EBITDA and Segments EBITDA
(iv)
EBITDAR and Segments EBITDAR
(v)
Adjusted (loss)/earnings per share (EPS) (basic and diluted)
Supplementary Financial Information (continued)
Alternative Performance Measures (‘APM’) and other definitions (continued)
(vi)
Net Debt
(vii) Net Debt and Lease Liabilities
(viii) Net Debt to Adjusted EBITDA excluding the impact of IFRS 16
(ix)
Net Debt and Lease Liabilities to Adjusted EBITDA
(x)
Net Debt to Value
(xi)
Free Cash Flow
Supplementary Financial Information (continued)
Alternative Performance Measures (‘APM’) and other definitions (continued)
(xii) Free cash flow per share (FCFS)
(xiii) Debt and Lease Service Cover
Supplementary Financial Information (continued)
Alternative Performance Measures (‘APM’) and other definitions (continued)
(xiv) Normalised Return on Invested Capital
(xv) Modified EBIT
Supplementary Financial Information (continued)
Alternative Performance Measures (‘APM’) and other definitions (continued)
(xv) Modified EBIT (continued)
Excluding IFRS 16 numbers
(xvi) Adjusted EBITDA excluding the impact of IFRS 16
(xvii) (Loss)/earnings per share excluding IFRS 16 (basic) and Adjusted loss per share excluding IFRS 16 (basic)
Supplementary Financial Information (continued)
Alternative Performance Measures (‘APM’) and other definitions (continued)
(xvii)
(Loss)/earnings per share excluding IFRS 16 (basic) and Adjusted loss per share excluding IFRS 16 (continued)
Glossary
Revenue per available room (RevPAR)
Average Room Rate (ARR) - also Average Daily Rate (ADR)
‘Like for Like’ occupancy, ARR and RevPAR KPIs
Segments EBITDAR margin
Effective tax rate
Fixed lease costs
Hotel assets
Refurbishment capital expenditure
Advisor and Shareholder Contacts
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Dalata Hotel Group PLC
Central Office:
4th Floor, Burton Court,
Burton Hall Drive, Sandyford,
Dublin 18, Ireland
T +353 (0)1 206 9400
F +353 (0)1 206 9401
E
W dalatahotelgroup.com
info@dalatahotelgroup.com