Dalata pays €8m for rest of Clarion Hotel
Ireland's largest hotel operator, Dalata Hotel Group has announced a deal with receiver Martin Ferris to buy the long leasehold interest of 33 suites in the Clarion Hotel Liffey Valley, Dublin, for €8.6m.
The consideration will be paid in cash, and is expected to be complete before the end of September.
Earlier this month Dalata, whose portfolio of hotels include the Clayton and Maldron hotel chains, announced that it had completed the acquisition of the core Clarion Hotel in Liffey Valley.
This incorporated 158 bedrooms, the leisure centre, meeting rooms, reception, bar and restaurant, car park and two vacant retail units.
The transaction announced yesterday, which is the equivalent of 99 rooms, will result in Dalata owning and operating all 257 bedrooms in the property, which it intends to rebrand as a Clayton Hotel before the end of 2017.
According to Davy analysts the 99 rooms will generate earnings before interest, taxation, depreciation, and amortization of approximately €1m in 2018 for the group.
"We are delighted to acquire these additional bedrooms so quickly after the purchase of the core hotel and are very excited about the potential of the hotel under the Clayton brand," said Dermot Crowley, deputy CEO business development and finance.
Following yesterday's announcement, shares in the company rose marginally to €5.6295 on the Irish Stock Exchange.
Earlier this month Dalata reported profits of €32.7m for the first half of 2017, up 80pc on the same period in 2016.