DAVY VIEW

STR data confirm that RevPAR rates continued to impress in October in its key markets and remain well ahead of 2019 levels. The average room rate (ARR) environment continues to be very strong, and occupancy (OCC) is trending back towards prior peaks. We were also reassured by recent data from the Irish Tourism Industry Confederation (ITIC), suggesting that the strong recovery in inbound tourism numbers continues. Dalata remains a top pick given its asset backing, low bank leverage, discounted valuation and strong management team.