Pat McCann the founder of Dalata Hotel Group is to step down from the role of CEO after almost 14 years.
Following a transition period, McCann will be replaced by current deputy CEO Dermot Crowley.
“Pat has been instrumental in growing Dalata, and its Clayton and Maldron brands, into a leading player in the hotel sector in Ireland and the UK,” John Hennessy, Dalata Chairman said.
“Having founded the business in 2007, he has successfully transformed Dalata, creating a listed business comprising 44 hotels, 9261 bedrooms and a pipeline of 13 new hotels with 3300 rooms. His leadership and his ability to engage our people has been critical to that success.”
Crowley has been at Dalata since 2012, serving as Deputy CEO, Business Development and Finance. He has previously worked at the likes of Jurys Doyle and Forte Hotels.
The news of the leadership change came on the same day that Dalata announced steep losses on the back of the coronavirus pandemic.
The company swung from a pre-tax profit in 2019 of €89.7m to a loss of €111.5m. Revenue was down 68.1 percent to €136.8m. RevPar fell 70.6 percent to €27.45.
As with others in the sector, Dalata looked to mitigate the collapse in bookings by cutting costs and tapping into government support schemes. It also managed to strengthen its finances through a variety of means, including, the sale and leaseback of the Clayton Hotel Charlemont, Dublin in April for €65m and an equity placing in September, which raised net proceeds of €92m.
“Our financial position remains robust. We have always managed the business with a strong understanding and awareness of the inevitable ups and downs facing our industry, including shocks, and yet position it for ongoing growth and opportunity,” McCann said.
“We therefore entered the crisis in a very strong financial position. Our strategy of maintaining an asset backed balance sheet and comfortable gearing ensured Dalata was well placed to confront the challenges which followed.”
Insight
Dalata has done a lot of work to strengthen its balance sheet over the course of the pandemic and should be in decent shape when hospitality businesses are allowed to reopen in Ireland and the United Kingdom.
It’ll be interesting to see what incoming CEO Dermot Crowley does when things hopefully return to normal. The company raised a decent chunk of money last September and has its eye on distressed assets. As governments start to withdraw their support will it look to pounce?