The Tara Towers Hotel in Dublin has been acquired by Dublin- and London-listed Dalata for €13.1 million. Completion of the acquisition is expected in January 2016. The hotel is reportedly poised to see profits of €475,000 this year.
According to the Irish Times, the group plans to invest €4.5 million on renovating the three-star hotel and move it up to a four-star property. The hotel will be rebranded as a Maldron hotel once renovation work is completed.
The Tara Towers was put up for sale in October with DTZ Sherry FitzGerald and Savills acting as joint selling agents. DTZ was quoting in excess of €9 million for the property and an adjoining 1.4-acre site beside it. The hotel and site were bought by Elmpark developers Bernard McNamara and Jerry O’Reilly in 2003 for €14.2 million.
Dalata, which was founded in June 2007, is the biggest hotel operator in Ireland with 41 hotels and more than 6,700 rooms. In March 2014, it raised €265 million through the issue of existing ordinary shares and listed on the AIM market in London and the ESM in Dublin. Dalata currently has 2,815 leased or owned rooms in Dublin, and the acquisition of the Tara Towers would add another four percent to the company's room stock in the city ahead of any renovations or expansions.
In an note to investors, Goodbody said that the acquisition was important given the lack of new hotel rooms expected in Dublin over the next two years. Other investors are avoiding the city, which is in dire need of new rooms in order to keep up with demand. Goodbody analyst Kevin McDermott told the Irish Times that the city's RevPAR is one of the fastest- growing in Europe. "We are expecting double-digit RevPar growth in 2016,” he said.