DAVY VIEW

STR data for the final month of 2022 confirm that demand is holding up well, with RevPAR continuing to be well ahead of 2019 levels. Although we are in the seasonally quiet period of the year, the data again confirm the continued strong recovery in the hotel sector. Commentary from Whitbread last week was also bullish in relation to the UK mid-scale and economy sector, with the CEO noting that “Despite macro concerns, we have an encouraging forward-booked position in the UK… pricing is expected to remain strong and with all of that, we remain confident in next year’s outlook. In short, we're in good shape and we've got a lot to look forward to”. Dalata updated in December, noting that aEBITDA for FY22 was expected to be in excess of €182m, ahead of our expectations and flagged cautious optimism for 2023.