Davy Research

Dalata Hotel Group

50% upside factoring in UK opportunities
Hotels
Dalata Hotel Group

DAVY VIEW

We reinitiate coverage on Dalata with an ‘Outperform’ rating and a 12-month price target of €6.20 (23% upside). Beyond this, we see material upside for Dalata in regional UK. Our on-the-ground research in several UK cities points to a stock of dated and underinvested 3-star and 4-star hotels. This is the opportunity for Dalata, which now plans to add circa 7,000 rooms in the UK – almost double its current room count. Our in-depth analysis suggests this market opportunity is worth an extra €1.40/share, implying total medium-term upside of 50%.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Dalata Hotel Group

    Closing Price: 503c

  • RATING 09/09/14

  • PREVIOUS RATING 03/09/14

    Under Review

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