Dalata Hotel: Navigating Mixed Signals Amidst Market Challenges

Analyst Jaina Mistry from Jefferies maintained a Hold rating on Dalata Hotel (DAL – Research Report) and keeping the price target at €5.90.

Jaina Mistry’s rating is based on several factors impacting Dalata Hotel’s performance. The company recently issued a trading update that fell short of expectations, with a softer than anticipated RevPAR in the first quarter. This was primarily due to weaker leisure demand in the UK, which led to a forecast of flat RevPAR from January to April, despite a slight increase in Dublin.
While the company’s outlook commentary is optimistic, indicating a stronger performance in London as the summer approaches, there are concerns about challenging comparisons in Dublin for May and June. Additionally, there was no new information provided regarding the strategic review, although Dalata is continuing to implement its long-term strategic plan, including a new leasehold agreement in Madrid. These mixed signals contribute to the Hold rating, as the company navigates both opportunities and challenges in its market environment.