Dalata buys land for new Dublin hotel

Dublin

In Ireland, the Dalata hotel group has acquired the Charlemont Clinic site in Dublin for €11.9 million and is reportedly planning to build a new four-star hotel there.

According to the Irish Times, the company bought DS Charlemont Limited from U+I property group in an all-cash deal and aims to have a new Clayton-branded hotel up and running by the first half of 2018. Dalata said the site received planning permission last month for a 181-room hotel. The planning conditions include revisions to the scale of the building which are subject to the agreement of the planning authority.

Dalata estimated the overall investment of the project, including site purchase, will exceed €40 million. The acquisition is Dalata’s first development project, which Davy Stockbrokers said meant the group could develop it in a manner in which it deems most efficient. In a note to investors, Davy said Dalata still has about €135 million in funds available and expected it to make further acquisitions during the year.

U+I acquired the Charlemont Clinic site for €7.1 million in December 2014. It orignially went on the market with a guide price of €5 million in February 2014. The Times noted that the sale made U+I  a profit of €4.8 million in just 14 months.

Source: Irish Times