Thursday 22 February 2018

Dalata to build hotels in Dublin city centre, in talks will NAMA and banks over acquisitions

Pat McCann of Dalata
Pat McCann of Dalata

Ailish O'Hora and Paul O'Donoghue

Irish hotel group Dalata is planning to build hotels in Dublin city centre and is also in talks to buy assets from NAMA and the banks.

The hotel firm, headed up by veteran hotelier Pat McCann, is raising €160m in the coming weeks to fund the hotel purchases.

"We are in talks to both build and acquire hotels in the city centre but negotiations are at an early stage," he said. "The market has really picked up but there is a shortage of hotels, particularly in Dublin and other city locations."

The funds will be raised through a share issue. 42.66m new ordinary shares are to be issued at a price of €3.75 per share.

Just over 14.5m ordinary shares will be issued through a firm placing at the company’s issue price to raise about €54.8m while another a further 28.06m ordinary shares will be issued through a placing and open offer at the issue price to raise €105.23m.

The company said that the funds will mainly be used to “finance further hotel acquisitions, development capital expenditure on existing assets as well as new build opportunities”.

It is expected that the offers will become effective on 6 October.

Meanwhile, the company also said that revenue in the six months to the end of June increased by 180pc to €97.7m. This was up from about €35m during the same period last year.

Announcing its half year results, the firm also said that earnings before deductions were €23.6m, with acquired hotels contributing €19.3m to that figure. Profit before tax for the period came to €2.7m, up from €900,000 the year before.

During the period the company  incurred once-off costs relating to acquisitions of €13.5m. 

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