Dalata splashes €62.5m on stakes in two Dublin hotels

The firm remains in acquisition mode...

Dalata splashes €62.5m on stakes in two Dublin hotels

claytonhotelcardifflane.com

Dalata, the publicly-quoted hotels group, has announced it’s to pay €62.5m in cash to acquire the freehold interest of parts of two Dublin hotels it already operates, and full ownership of the Maldron Hotel in Portlaoise, at a net cost of €6.8m.

The Dublin assets include bedrooms and other facilities in the Clayton Hotel in Cardiff Lane in Dublin’s Docklands and the Clarion Hotel Liffey Valley, to the west of the city. Both are being sold by receiver Kieran Wallace of KPMG.

Its Portlaoise deal includes the adjoining Midway Foodcourt.

Dermot Crowley, Deputy CEO Business Development and Finance, said: "We are delighted to have secured the freehold of our Maldron Hotel in Portlaoise. This transaction is consistent with our stated strategy of buying out the freehold interests of those leased properties with future unpredictable rent reviews."

Commenting on the Dublin deals he added, "We have been seeking to purchase as much of the freehold of Clayton Hotel Cardiff Lane as possible since we floated the Company in March 2014. I am delighted that we will now own the majority of the hotel and that as a result of this transaction, we will be able to add much-needed conference facilities to the hotel in an area of the property that is currently in a shell and core condition. This transaction is also consistent with our stated strategy of buying out the freehold interests of those leased properties with future unpredictable rent reviews.

"We have managed the Clarion Hotel Liffey Valley since March 2016 and are very excited about the potential of this hotel under the Clayton brand. We believe the proposed sale and leaseback of one of our UK properties represents a very good opportunity to utilise the strength of our balance sheet."

Dalata Hotel Group plc is Ireland’s largest hotel operator, with a current portfolio of 41 hotels with over 8,000 rooms.

It operates Ireland’s two largest hotel brands, Clayton Hotels and Maldron Hotels.

For the full year 2016, Dalata reported revenue of €290.5m.

 

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