Saturday 23 September 2017

Dalata's €50m London placing set for Wednesday

Pat McCann, Chief Executive, Dalata Hotel Group
Pat McCann, Chief Executive, Dalata Hotel Group
Gavin McLoughlin

Gavin McLoughlin

Hotels group Dalata is set to raise €50m on the London Stock Exchange on Wednesday.

The money will be used to help finance the group's €455m purchase of the Moran Bewley's hotel group, which sees it acquire hotels in London, Leeds and Manchester, as well as Dublin and Cork.

The company - Ireland's biggest hotels group - has said it will seek to grow its UK footprint further in future.

The share placing was announced before Christmas but is triggered by the regulatory approval given to the Bewley's Moran purchase.

That purchase doesn't include the Red Cow Moran Hotel.

Dalata CEO Pat McCann called the takeover a "transformational development" when the deal was announced.

"It is a business we have admired for a long time and the acquisition is a rare opportunity to acquire a large well invested portfolio of hotels," he said.

"We have now fully invested the proceeds from our IPO in line with our investment strategy well ahead of schedule. I look forward to driving value from the acquisitions we have completed in 2014

The Moran Bewley's deal comes off the back of a number of other acquisitions completed by Dalata in 2014, including the Pillo Hotel in Galway, White's Hotel in Wexford town and the Clayton Hotel in Galway.

It raised €265m floating on the Irish Stock Exchange last March at €2.50 a share. On Friday, Dalata shares closed at €2.92 apiece.

Irish Independent

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