Disclaimer
The presentation contains forward looking statements. These statements have been made by the
Directors in good faith based on the information available to them up to the time of their approval of this
presentation.
Due to inherent uncertainties, including both economic and business risk factors underlying such
forward looking information, actual results may differ materially from those expressed or implied by
these forward looking statements. The Directors undertake no obligation to update any forward looking
statements contained in this presentation, whether as a result of new information, future events or
otherwise.
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Dalata | Strong, Complementary Brand Proposition
Brand Proposition
Maldron is all about providing a fun, relaxed time for all who arrive through our doors. Our great-value hotels arefound in convenient locations close to local attractions -
ensuring there’s always plenty to see and do. With friendly, helpful staff, good food and excellent facilities, it’s the
perfect place to enjoy good times with family and friends
Rest assured, it’s a Maldron
You can always depend on Clayton Hotels to deliver exactly what you need, whether that’s a weekend
away, a family break or an important business meeting. From the comfort of our bedrooms to the quality of
our facilities and the warm, helpful attitude of our staff - every detail is handled with care
Where every moment matters
BedroomsGenerally standard rooms, with family and executive rooms
in some locationsStandard, superior and executive rooms
Food and Beverage
Integrated bar and restaurant in some locations. Simplemenus made from fresh quality produce
Modern bar, restaurant and coffee dock. Food and beverage offering based on local influences and freshly
sourced premium ingredients
Conference Facilities
Meeting room facilitiesExtensive choice of modern meeting rooms and events
facilities
Target Customers
Both leisure and corporate with main focus on leisure guests and family
Focus on corporate and conference midweek. Leisure, functions and weddings at weekend
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Dalata | 3 Core Business Segments – H1 2017
Dublin14 Hotels 3,699 RoomsH1 2017 RevPAR: €96.36(+8%)
57%Group Revenue
60%Segment EBITDA
48%EBITDAR Margin
Regional Ireland12 Hotels 1,643 RoomsH1 2017 RevPAR: €60.93(+9%)
21%Group Revenue
15%Segment EBITDA
24%EBITDAR Margin
UK *
7 Hotels 1,557 RoomsH1 2017 RevPAR: £63.72(+15%)
21%Group Revenue
23%Segment EBITDA
38%EBITDAR Margin
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* Excludes Croydon Park Hotel
Information as at period end
Dalata | Owned & Leased Portfolio at January 2018
Owned Hotels / Freehold Equivalent
Hotel Rooms
Clayton Hotel Dublin Airport 504
Clayton Hotel Manchester Airport 365
Clayton Hotel Leopardstown, Dublin 354
Clayton Hotel Leeds 334
Clayton Hotel Ballsbridge, Dublin 304
Clayton Hotel Cardiff Lane , Dublin (1) 304
Maldron Hotel Newlands Cross, Dublin 297
Clayton Hotel Liffey Valley 261
Clayton Hotel Chiswick, London 227
Clayton Hotel Cork City (2) 201
Clayton Hotel Galway 195
Clayton Hotel Belfast 170
Clayton Hotel Sligo 162
Clayton Whites Hotel, Wexford 160
Clayton Hotel Limerick 158
Clayton Crown Hotel, London 152
Maldron Hotel Limerick 142
Maldron Hotel Parnell Square, Dublin 129
Maldron Hotel Pearse Street, Dublin 115
Tara Towers Hotel, Dublin 111
Clayton Hotel Silver Springs, Cork 109
Maldron Hotel Wexford 108
Maldron Hotel Sandyroad, Galway 104
Maldron Hotel Cork 101
Maldron Hotel Derry 93
Maldron Hotel Portlaoise 90
Total 5,250
Lease Agreements
Hotel RoomsClayton Hotel Burlington Road, Dublin 502
Ballsbridge Hotel, Dublin 400
The Gibson Hotel, Dublin 252
Maldron Hotel Dublin Airport 251
Clayton Hotel Cardiff, Wales 216
Hotel La Tour Birmingham 174
Maldron Hotel Tallaght, Dublin 119
Maldron Hotel Galway (Oranmore) 113
Maldron Hotel Smithfield, Dublin 92
Total 2,119
New pipeline
Hotel Rooms
OwnedClayton Hotel Charlemont, Dublin 188
Maldron Hotel Kevin Street, Dublin 138
Maldron Hotel South Mall, Cork 164
Maldron Hotel Belfast City 237
Clayton Hotel Ballsbridge, Dublin 31
Clayton Hotel Dublin Airport 106
Maldron Hotel Parnell Square, Dublin 53
Maldron Hotel Sandyroad, Galway 64
LeasedMaldron Hotel, Newcastle 265
Clayton Hotel, Manchester 300
Clayton Hotel, Glasgow 300Total 1,846
(1) Dalata own 252 rooms and lease 52 rooms(2) Dalata own 194 rooms and lease 7 apartments Page 7
Summary by Hotel Category Hotels Rooms
Owned 26 5,250
Leased 9 2,119
New pipeline 7 1,846
Mgmt Agreement – Owners 3 308
Total 45 9,523
Dalata | Strong Balance Sheet providing covenant for growth
Objective is to maintain a strong balance sheet withappropriate level of gearing, leading to a strong covenantfor potential landlords/investors
Decrease in Net Debt to Amended EBITDA to 1.91x from2.40x
£174.4m (€198.3m) of borrowings in Sterling as a naturalhedge against value of Sterling assets and Sterlingdenominated earnings
Combination of strong cashflow, cash balance, undrawnfacilities and low gearing provides a Balance Sheet tocomfortably fund current expansion plans
All figures €m 30 June 2017
31 Dec2016
Non-current assets
Tangible assets 829.5 825.7
Goodwill and intangibles 54.7 54.3
Other 11.7 6.6
Current assets
Trade receivables, inventory and other
25.9 17.7
Cash 88.9 81.1
Total assets 1,010.7 985.4
Equity 652.8 620.4
Bank loans 267.5 280.4
Trade and other payables 58.6 53.1
Other non current liabilities 31.8 31.5
Total equity and liabilities 1,010.7 985.4
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Dalata | “The Difference with Dalata”
Our decentralised operational approach
Dalata’s decentralised structure is core to our management philosophy
Hotel General Managers are critical players – we continually develop them
A strong multi-functional team at the centre setting direction, seeking growth opportunities,supporting the hotels, and reporting to our stakeholders
We grow our own – training and development a major focus as there is a need to have a strong pipelineof key people coming through
Having people we know taking up key roles de-risks our business
We focus on what we are good at
Operating 3 star and 4 star modern well-maintained hotels in cities with strong mix of corporate andleisure demand
Executing transactions to grow our owned and leased portfolio
Identifying strong locations and developing new hotels on them
Decentralised revenue management – our revenue managers are informed by systems but always makethe decisions themselvesInvesting in systems to support our approach to cost control
Owner/Operator Model
Control of our brand standardsSecurity of tenure allows us to build a central team to effectively support and scale our decentralisedstructure
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Ireland: Portfolio Objectives
Complete existing development pipeline of 744 rooms and deliver on earnings potential when theyopen in 2018
Reach the optimum market share in each of the key urban centres – Dublin, Cork, Limerick and Galway
Drive Portfolio Growth | Ireland
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Dalata | Over 1,840 new rooms across Ireland and UK
Dublin
2 New Hotels
3 Extensions
516 rooms
Regional Ireland
1 New Hotel
1 Extension
228 Rooms
UK
1 New Owned Hotel
3 New Leased Hotels
1,102 Rooms
Property New Extension Rooms Planning Construction Completion
Granted Started
Clayton Hotel Charlemont x 188 x x Nov 2018
Maldron Hotel Kevin Street x 138 x x June 2018
Clayton Hotel Ballsbridge x 31 x x Aug 2018
Clayton Hotel Dublin Airport x 106 x x May 2018
Maldron Hotel Parnell Square x 53 x x Dec 2018
Property New Extension Rooms Planning Construction Completion
Granted Started
Maldron Hotel South Mall, Cork x 164 x x Dec 2018
Maldron Hotel Sandyroad, Galway x 64 x x June 2018
Property New Extension Rooms Planning Construction Completion
Granted Started
Maldron Hotel Belfast City x 237 x x Mar 2018
Maldron Hotel, Newcastle* x 265 x x Feb 2019
Clayton Hotel, Manchester* x 300 Q3 2020
Clayton Hotel, Glasgow* x 300 Q4 2020
*35 year operating lease
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Dalata | Market Review – Dublin
350
1,150
2,250
0
500
1000
1500
2000
2500
2017 2018 2019
Savills forecast net additional 3,750 rooms by 2019
Dublin2015
Actual 12016
Actual1
2017F’cast
2018F’cast
Occupancy 82.1% 82.3% 82.7% 82.3%
ARR 111.92 128.49 137.76 142.89
RevPAR 91.90 105.71 113.90 117.64
RevPAR % Variance
23.0% 15.0% 7.6% 3.3%
1. 2015 and 2016 numbers differ slightly from those previously reported as STR revised their numbers
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Total market size of circa 20,885 rooms
Significant number of rooms expected to open towards the end of 2018 and into 2019 and 2020
Increase in supply expected to be matched by increase in demand from continued economic growth, increased visitor numbers and growing evidence of office relocations from London to Dublin
7.7% RevPAR year on year growth at October 2017
Source: STR Global
Dalata | Market Review – Regional Ireland and UK
RevPAR Growth 2015 2016YTD
Oct 2017
Cork 9.6% 13.3% 13.7%
Galway 13.3% 10.7% 7.9%
Limerick 23.4% 16.4% 12.6%
Continuing strong demand from FDIs, domestic corporate and domestic leisure customersNo increases in supply and very little supply pipeline Continued strong growth in 2017 for all three cities
Source: STR Global
Source: Trending.ie
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RevPAR Growth 2015 2016YTD
Oct 2017
London 1.2% -0.9% 5.8%
Manchester 7.5% 5.7% 0.9%
Birmingham 11.3% 7.7% 2.1%
Cardiff 14.2% -1.1% 9.9%
Leeds 8.1% 3.7% -0.9%
Belfast 11.9% 9.0% 18.5%
Very strong RevPAR growth in London versus H12016 which was negatively impacted by new supplyand impact of terrorism. Market has been weaker inH2Re-opening of Waterfront Centre in mid 2016together with positive impact of weaker sterling onROI visitors resulted in a very strong period inBelfastMixed performance at three UK regional cities
Dalata | 20 Target Cities Identified From Research
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1 Edinburgh2 Manchester3 Glasgow4 Brighton5 Bristol6 Leeds7 Liverpool8 Oxford9 Belfast10 Reading
11 Birmingham12 York13 Cambridge14 Southampton15 Milton Keynes16 Cardiff17 Portsmouth18 Newcastle19 Bournemouth20 Exeter
Following extensive research management have identified 20 provincial UK cities with strongopportunities for Maldron or Clayton hotels
Target 20 Cities | 3&4 Star Segment comprises 57% of the Market
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3%
35%
22%
40% 5 Star
4 Star
3 Star
Budget & 2 Star
Target 20 Cities | Brand Shares
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12%
7%
5%4% 4% 4%
3%3% 3%
2%
Premier Inn Travelodge Ibis Holiday Inn Hilton Holiday Inn Express
Jurys Britannia Hotels
Marriott Mercure
Fragmented market with only budget brands having a significant share
Source : AM PM Hotels
Target 20 Cities | Brand Shares in 3&4 Star Market
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Very fragmented with no dominant brand
8%
7%
6%
5%5%
4%4%
3%3% 3%
Holiday Inn Hilton Jurys BritanniaHotels
Marriott Mercure CrownePlaza
Novotel DoubleTreeby Hilton
RadissonBlu
Source : AM PM Hotels
Target 20 Cities | Operator Shares in 3&4 Star Market
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Operators with less than 4% market share comprise 70% of the 3&4 star market
Source : AM PM Hotels
7%
6%
5%
4% 4% 4%
3%
2% 2% 2%
Target 20 Cities | Ownership Model in 3&4 Star Market
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Over 70% of the owner operators have 4 hotels or less33% of the leased hotel operators have 4 hotels or less
Source : AM PM Hotels
47%
9%4%
16%
24%Owner Operator
Franchised
Managed/Franchised
Managed
Leasehold
Target 20 Cities | International Brands moving away from operating hotels
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Source : AM PM Hotels
HiltonMarriott/Starwood
IHG Accor
Franchised 72% 43% 70% 33%
Managed 24% 52% 30%67%*
Owned/Leased 3% 2% 0%
Worldwide Rooms by Ownership Model
*Accor do not disclose separately no. rooms managed, owned and leased
Target 20 Cities | Age Profile in 3&4 Star Market
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Source : AM PM Hotels
19%18%
20%
18%
24%
Not Stated Under 10 years 10 - 20 years 20 - 40 Years 40 + years
Target 20 Cities | Fragmented Market offering Compelling Opportunity
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Dalata’s management team believe that a large structural opportunity has emerged in the 3 and 4 starhotel markets in certain regional cities in the UK. Key drivers of this structural opportunity are:
International brands are increasingly evolving to a franchise model leaving a shortage of operatorswith any scale
The specific 3 and 4 star market in certain large regional cities is very fragmented and there are nodominant brands in this market segment
Ownership model is also very fragmented
Close to 50% of the 3 & 4 star market comprises owner/operators and 70% of these operate 4hotels or less
The stock of 3 and 4 star hotels is considerably older than the age profile of the Budget sector
Opportunity now exists for a hotel operator with a strong balance sheet and operational focus to become the market leader in fragmented 3 and 4 star hotel markets
Target 20 Cities | Clear Competitive Advantage in Fragmented Market
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Dalata Competition
Financial resources &
Ability to secure sites
• Willing to put strong balance sheet behind
strategy to own or lease
• Very attractive to developers & property
investors
• Large brands won’t own or lease.
• Weak balance sheets for smaller
operators
Depth of
Hotel Operational
Expertise & Resources
• Management and staff avail of comprehensive
training & development programmes
• Highly motivated management teams with
large growing hotel group
• Support of Central Office functions
• Difficult for smaller operators or
larger Third Party Operators
(TPOs) to provide same level of
training or opportunity due to
lack of tenure (TPOs) or scale
(independent operators)
Senior Management
Team
• Existing management platform in place in the
UK
• Senior management team has operated in UK
hotel market for over [x] years
• Senior management team created, rolled out
and operated a new brand in the UK
previously – Jurys Inn
• Not clear that same level of
experience exists within TPOs or
independent operators
• Large brands dependent on
owners to roll out their brands
Target 20 Cities | Key Objectives in Target UK 20 cities
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Our objective is to become the leading 3/4 star operator in our target city markets
Target range of 10% to 15% market share of 3/4 star market in each city
Translates to additional circa 8,000 rooms (assuming a 12.5% market share in achieved) in 5– 7 years
Further opportunities are likely to exist in the Greater London area and adjacent to UKairports but Dalata will look to address those opportunities in a more bespoke manner as andwhen they arise
Target 20 Cities | Early examples of UK expansion strategy
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Hotel La Tour (Birmingham) – Existing Asset
• Bought in July 2017 for £31m • Sold Freehold to Deka Immoboilien and entered a 35
year lease at initial rent of £1.6m p.a. • Modern hotel with 174 rooms, restaurant, bar and
extensive meeting facilities • Exploring potential to add a further 40 rooms • Have identified significant opportunities to reduce
costs and increase revenues• Rebranded as a Clayton hotel in October
Clayton Manchester – Development asset
• Agreement for lease contracts exchanged • Planning application in Q4 2017• Excellent city centre location – Portland Street• Local well regarded developer – Property Alliance
Group • Rent cover Yr 3 > 1.85X • Will be branded a Clayton • Target opening mid 2020
Target 20 Cities | Early examples of UK expansion strategy
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Clayton Glasgow, Clyde Street – Development asset
• Agreement for lease contracts exchanged • Planning application in Q1 2018• Circa 300 bedroom new build Clayton
Hotel• Very close to retail and leisure attractions• International Financial Services District
within 5 minute walk• Developer partner is Artisan Real Estate
Investors• Target opening Q4 2020
Dalata | Another Busy Year in store in 2018
Continued focus on operational requirements of our hotels through training/development programmes, investment in technology and interaction with our customers
Confirmed pipeline of 1840 rooms across the three regions – 975 of these to open in 2018
Planning to commence construction in our two new Clayton hotel projects in Glasgow and Manchester.
Seeking to secure a further 1200 rooms in our development pipeline
Planning to complete the current investment programme in technology across our property management, revenue management and procurement systems.
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