Ireland’s biggest hotel group, Dalata, is planning to raise between €150m and €200m via a stock exchange flotation next month.
The company confirmed this morning that it intends to list in Dublin and London and will use the proceeds from the share sale to buy between 16 and 25 hotels.
Headed by former Jurys Doyle boss Pat McCann, Dalata operates 13 Maldron hotels in Ireland and the UK, while it also operates an additional 27 hotels on a management contract basis. It controls over 6,100 hotel bedrooms.
Last year, Mr McCann said that Dalata had been exploring finance options with investors in London with a view to possibly acquiring hotel properties.
"International demand is growing steadily across the Irish hotel sector and especially in Dublin - aided by the development of projects like the International Convention Centre and a continuing strong flow of foreign direct investment,” said Mr McCann this morning.
“We want to increase the size and quality of our portfolio by acquiring hotels as they come to market either through portfolio acquisitions or single asset purchases,” he added.
The stock market listing will come as NAMA prepares to sell a number of hotels that it controls in Ireland in coming months.
Dalata will place shares with institutional investors, as well as clients of Davy (who originally invested over €20m in the Dalata) and other existing shareholders.
Among the group’s existing shareholders is investment firm TVC. It invested in Dalata when it was founded in 2008 by Mr McCann. But the subsequent difficulties in the hotel sector as a result of the downturn saw TVC write off virtually its entire €10m investment in Dalata.
Dalata reported revenue of €60.6m last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of €5.3m.