Dalata nabs leasehold interest in four Irish, UK hotels

Irish hotel group Dalata will acquire the leasehold interest of Gibson Hotel in Dublin, the Croydon Park Hotel in South London, the Clarion Hotel in Cork and the Clarion Hotel in Limerick for what the Irish Times is estimating will be an enterprise value of €40 million. Dalata will also take over the management of the Clarion Liffey Valley Hotel in Dublin, under a short term management contract, and plans to invest €14 million over the next two years to refurbish the four properties. When the refurbishments are complete, the hotels will be rebranded under the Clayton brand. 

The leasehold interest includes operating leases with an average term of 18 years outstanding.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Dalata deputy chief executive Dermot Crowley told the Irish Times that the deal gives the hotel group a further 960 rooms in the cities of Dublin, Cork and Limerick, and will add 211 rooms to its UK portfolio with the Croydon hotel. 

Underlying earnings before interest, tax, depreciation and amortization for the four hotels in 2015—after adjusting for costs and revenues that will not transfer as part of the transaction—is expected to be €4.1 million. Including revenues from the short term management contract, underlying EBITDA is expected to be €4.7 million.

Dalata told the Times that the acquisition is subject to approval of the Competition and Consumer Protection Commission and Grant Thornton acting as receiver of the freehold interest in the Gibson Hotel.

Suggested Articles

Reuben Brothers have completed the acquisition of the La Palma Hotel in Capri, the first and oldest hotel on the island, opened in 1822.

Rosewood Hotels & Resorts said that it would expand the number of properties with a residential component over the coming years.

Accor has committed to eliminating all single-use plastics which formed part of the guest experience by 2022.