Business Post | Dalata’s Dermot Crowley’s alarm on infrastructure shortcomings as UK growth targeted
Dalata last week said it expects to deliver a profit of more than €232 million this year as it continues to expand its presence across the UK and Europe
By Ellie Donnelly | Business Post
Dermot Crowley, CEO of Dalata Hotel Group, has delivered a stark warning about Ireland’s infrastructure shortcomings, describing them as a growing threat to the country’s economic future.
As Dalata, Ireland’s largest hotel chain, posts record profits and expands aggressively into the UK and Europe, Crowley urged immediate investment in housing and utilities to prevent the nation’s growth momentum from stalling.
“When I look at increases in our pay rates, it’s primarily down to the fact that people need to get paid more because rents are too high, and that’s because there’s not enough housing, and sometimes the housing is restricted by the supply of water, supply of electricity,” he told the Business Post.
“Our infrastructure needs to catch up”
“So, I would encourage anyone who’s got influence there is infrastructure is really important, and we really do need to get moving on it. So that’s something we can control as a country and an economy.”
Dalata last week said it expects to deliver a profit of more than €232 million this year as it continues to expand its presence across the UK and Europe. The latest adjusted earnings before deductions of €232 million represents growth of 4 per cent year on year.
Ireland’s appeal to US multinationals, fuelled by its political stability, EU membership, and skilled workforce, remains a significant economic driver. However, Crowley suggested that these advantages could be eroded if the government fails to address infrastructure issues that are pushing up costs for businesses and workers alike.
“What happens in the US political environment, we can’t control,” Crowley said, referencing concerns about potential tariffs under a Trump presidency. “What we can control is making Ireland fit for growth. Our infrastructure needs to catch up.”
“When I talk to anyone who is in the area of infrastructure, [investment] absolutely needs to happen, because that will restrict our growth [without it],” he said.
Dalata is forging ahead with ambitious plans, focusing on major UK cities such as London, Manchester, and Birmingham, despite the British economy stagnating. In November the Bank of England forecast growth of 0.3 per cent in the final three months of this year.
“The UK is our major country of growth, we’re looking in Europe as well, but the UK will be our main focus.”
The company aims to add 5,000 rooms in the UK, where Crowley sees structural advantages over smaller competitors operating older properties.
“The UK economy is interesting because, sometimes we talk about a national economy, it varies from location to location. The big cities in the UK are doing reasonably okay. I think it’s the smaller cities, or those cities that are maybe more traditional manufacturing cities, that have struggled,” Crowley said.
“The ones we’re focused on, places like Edinburgh, Glasgow, Manchester, Birmingham, they’re all big cities with a lot of leisure demand and a lot of corporate demand. We obviously keep a close eye on the outlook for the UK economy, but generally speaking, is something I’d be overly concerned about? No, I think structurally, in the UK, a lot of our competitors are smaller, they’ve got very old hotels, so we’ve got a lot of structural advantages versus our competition in the UK.”
The company can add “another 5,000 rooms or so over time” in the UK, Crowley said, focusing on cities such as London, where the company announced a sixth hotel a few weeks ago.
Despite its international focus, Dalata remains a key player in the Irish economy. Crowley called for greater recognition of the hospitality sector’s contribution, noting its role as a major regional employer.
“We under appreciate the contribution hospitality makes to the overall economy and just how important it is to protect it and nourish it. If we could have a dedicated minister, I’d be all in favour of that. But it would be wrong for me say I don’t appreciate the challenges when you are forming a government.”
The broader Irish hospitality industry faces mounting challenges. Rising wages, energy costs, and food prices have driven many operators to the brink, with nearly 700 cafés and restaurants closing this year alone. Crowley warned that without targeted government support, closures will continue into 2025.
“In hotels, you make more money from rooms, our food and beverage business, is far more challenged than the rooms business. If you’re running a restaurant, it is really difficult in Ireland,” he said.