1. Bank of Ireland
Building Business Momentum Conference
Presented by: Pat McCann
Chief Executive
Dalata Hotel Group Ltd
Date: 24 May 2013

2. 2
Hospitality – The Future for an
Over Supplied Hotel Market

3. 3
Dalata Hotel Group Ltd
• Largest hotel group in Ireland
• 30 hotels
• Over 5000 bedrooms
• Over 3000 employees

4. 4
Maldron Hotels
• Formed in 2007
• Purchase of ten, mainly leasehold, assets
• Re-branded to Maldron Hotels in 2008
• Maldron Hotel Cardiff (new build) opened in May
2011
• Maldron Hotel Belfast added in February 2013
• Twelve Maldron Hotels with over 1500 bedrooms

5. 5
Partner Hotels
• Started our first management contracts in 2009
• Eighteen hotels with over 3500 bedrooms
(thirteen in Receivership)
• Extremely valuable part of the business providing
good cash flow
• Management contracts high intensity with high
maintenance
• Short-term in nature
• Need to remain unbranded

6. 6
The Hotel Sector in Ireland
• Number of hotel rooms in Ireland:
1999 30,000
2005 45,000
Today 60,000
• Average hotel size:
Pre-2000: 35 bedrooms
Today: 67 bedrooms
• Estimated over capacity:
10,000
• Growth in other forms of accommodation

7. 7
Growth in Number of Hotel Rooms
Since 2005
• Largest growth
– Meath 68%
– Laois 56%
– Carlow 51%
– Roscommon 49%
• Dublin City Centre/Cork City/Galway City/ Kerry
may not be over supplied

8. 8
The Demand Side
• The decline in the British market
• Over reliance on the Irish market outside the
urban areas
• Reliance on food and beverage
• Based on current growth projections, estimated
over capacity in 2015 still at 7000 bedrooms

9. 9
The Distribution Model
(i.e. How hotels get their business)
• The power of the internet (seismic shift in ten years)
– own website
– third party sites
– Google
– social media
– visibility of pricing
– not just bedrooms business
– the big brands
– revenue management

10. 10
The Business Mix
• Each hotel unique
• Owned business vs transient business
• Yielding off the base
• The wedding business
• GDS

11. Irish Hotels 2010 v 2007
11
2007 2010 Change
Room Occupancy 70.3% 60.0% (10%)
Average Daily Rate (ADR) €97.16 €73.06 (25%)
Revenue per available room (RevPAR) €68.31 €43.84 (36%)
Source: Crowe Horwath Ireland and Northern Ireland Hotel Industry Survey 2008/11

12. Impact of the Market Collapse on the Sector
900 hotels in Ireland; 60,000 rooms
Catalyst for
fundamental change
in the structure of
the sector
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Before After
Billions
Debt Equity
Total Hotel Sector Value
Source: Central Bank of Ireland/Author’s estimates
12

13. 13
What Does this all Mean for Hotels
in Ireland?
• Sale of hotels
• Commercial reality will mean some hotels close
• Stand alone hotels will struggle to survive
• Urgent need for professional management
• Hotels will need to come together for
– procurement
– Distribution
– retail model
• Hotels by their nature adaptable and resilient
• Hoteliers always positive (“cup half full”)
• Recovery has started in Dublin
• WE WILL SURVIVE!

14. 14
The Future for Dalata Hotel Group
• Continue to expand the Maldron brand
• Continue the focus on acquiring new
management contracts
• Become a consolidator in the hotel sector
• Develop more sustainable income streams for the
Group
• Acquire assets or longer-term management
contracts
• Value creation for shareholders

15. 15
QUESTIONS