Dalata acquires €40m of leasehold interests in four hotels
Dalata, Ireland's largest hotel operator, has acquired the leasehold interest of four hotels for an enterprise value of €40m.
The deal will see Dalata add 1,171 rooms to its hotel portfolio in Dublin, London, Cork and Limerick.
The hotels are the Gibson Hotel Dublin, the Croydon Park Hotel in Croydon, the Clarion Hotel Cork and the Clarion Hotel Limerick.
The leasehold interest comprises of operating leases with an average term of 18 years outstanding.
Chief executive for business development and finance at Dalata, Dermot Crowley, said the firm was very excited to acquire the leasehold interests.
"This transaction gives Dalata a further 960 rooms in the cities of Dublin, Cork and Limerick. All three cities are experiencing strong revenue per available room (RevPar) growth in the recovering Irish economy. The transaction also allows us to further grow our portfolio in the UK with the addition of 211 rooms in Croydon," Mr Crowley said.
As part of the deal Dalata will also take over the management of the Clarion Liffey Hotel in Dublin under a short-term management contract.
The hotels that Dalata has acquired the leasehold interests in are currently operated as part of the Choice Hotel Group with the consideration payable in cash.
Underlying earnings before interest tax depreciation and amortisation at the four hotels in question is expected to be €4.1m in 2015.
Dalata also announced its plans to invest €14m over the next two years in refurbishing the hotels in Cork, Limerick, and Croydon.
The 4 leasehold properties will be rebranded to Clayton Hotels, increasing the Clayton portfolio to 18 hotels.