Ireland-based Dalata Hotel Group has acquired a long-hold lease on 33 suites in the Clarion Hotel Liffey Valley, Dublin from Martin Ferris for £7.6 million. The consideration will be paid in cash and is scheduled to be completed before late September.
Dalata completed the acquisition of the core 158-guestroom Clarion Hotel earlier this month. Now that Dalata has acquired a 99-guestroom portion of the property just this week, the group currently owns and operates 257 guestrooms on the site. The property is slated to operate under the Clayton Hotel brand before the end of 2017.
Davy analysts have predicted the 99 guestrooms will generate approximately £880,000 before interest, taxation, depreciation and amortization for the group in 2018. Following the acquisition, Dalata's shares rose marginally on the Irish Stock Exchange.
As of early September, Dalata earned £28.9 million in profits for the first half of 2017. That's an 80-percent increase from the same period last year. Meanwhile, revenue rose by 24.4 percent. The company maintains a portfolio of Clayton- and Maldron-brand hotels. Two of these properties include the Maldron hotels at Belfast International Airport and in Londonderry. Next year, Dalata will open another Maldron-brand hotel in Belfast's Brunswick Street.
The group reported that it spent €17.1 million on developing new hotels and extending properties during the first half of 2017. This included renovations on the Clayton Hotel Charlemont, Maldron Hotel Kevin Street, Maldron Hotel Belfast City and Maldron Hotel Newcastle. The group’s current development pipeline has over 1,280 new guestrooms slated to open in 2018, including the construction on the 141-guestroom extension at Clayton Hotel Dublin Airport, which began in May.