Ireland's Competition and Consumer Protection Commission has cleared Dalata's leasehold acquisition of the former Burlington hotel in Dublin, currently operating as a Doubletree by Hilton. The deal is slated to close in the coming weeks.
The hotel was sold by private-equity group Blackstone to German asset manager DekaBank over the summer in a deal that was expected to reach an estimated €180 million. Blackstone bought the hotel in 2012 for €67 million and has reportedly spent spent another €20 million refurbishing it. The property reportedly attracted interest from the Abu Dhabi Investment Authority, Hyatt Hotels and Host Hotels & Resorts.
The transaction consideration for Dalata is €2.5 million, subject to certain adjustments.The Doubletree will likely be re-branded as a Clayton.
This acquisition brings 502 more rooms to Dalata's 6,600-room portfolio. It also further highlights Dalata's role as the consolidator in what is still a highly fragmented Dublin hotel market.
"This acquisition increases Dalata exposure to Dublin, adds an additional 7.5 percent to group EBITDA in 2017 and represents a new avenue of growth for the group with a financial partner looking to acquire assets that can be leased to a strong PLC covenant," Davy Stockbrokers said.