Dalata Hotel Group has acquired stakes in two Dublin hotels for €62.5 mln and purchased another asset in the Irish midlands for a net cost of €6.8 mln.
The Irish hotel operator has entered into an agreement with Kieran Wallace as receiver to acquire the freehold interest of 'certain elements' of the Clayton Hotel Cardiff Lane, Dublin 2 and the Clarion Hotel Liffey Valley, Dublin 22, for €62.5 mln.
Dalata, which is listed in London and Dublin, said the deal was subject to regulatory approval and was expected to complete in June.
'We have been seeking to purchase as much of the freehold of Clayton Hotel Cardiff Lane as possible since we floated the company in March 2014,' said Dermot Crowley, deputy CEO of business development and finance at Dalata.
'I am delighted that we will now own the majority of the hotel and that as a result of this transaction, we will be able to add much needed conference facilities to the hotel in an area of the property that is currently in a shell and core condition. This transaction is also consistent with our stated strategy of buying out the freehold interests of those leased properties with future unpredictable rent reviews,' he added.
Dalata's portfolio comprises 41 three- and four-star hotels with over 8,000 rooms. The company operates Ireland's two largest hotel brands, the Clayton and the Maldron Hotels across Ireland and the UK, as well as managing a portfolio of partner hotels.
Cardiff Lane
Clayton Hotel Cardiff Lane is a 4-star hotel located in the South Docks area of Dublin. Dalata has agreed to acquire the freehold of the ground and lower ground floors, which 170 of the total 304 bedrooms.
Liffey Valley
Clarion Hotel Liffey Valley is a 4-star, 353-bedroom hotel located to the west of Dublin adjacent to the orbital M50 motorway and Liffey Valley shopping centre.
Dalata has agreed to acquire the freehold of the core hotel, incorporating 159 bedrooms, meeting rooms and the gym. Once the investment transaction completes, the hotel will be rebranded as Clayton Hotel Liffey Valley.
Portlaoise
In a separate statement, Dalata announced it had entered into an agreement with receivers to acquire the freehold interest of the 3-star Maldron Hotel Portlaoise and adjoining Midway Foodcourt. Dalata agreed a simultaneous sub-sale of the foodcourt to a third party. The net cost of the transaction to Dalata is €6.8 mln.
UK
Dalata also revealed that it was in exclusive negotiations to sell one of its Clayton hotels in the UK in a sale-and-leaseback transaction.
