Thursday 23 November 2017

Dalata to pay €70m for hotel freeholds

Dalata CEO Pat McCann
Dalata CEO Pat McCann
John Mulligan

John Mulligan

Ireland's largest hotel group, Dalata, has agreed to pay €62.5m to acquire the freehold of interest of certain elements of the Clayton Hotel on Cardiff Lane in Dublin, and the Clarion Hotel in Liffey Valley.

Dalata has also agreed to buy the freehold of the Maldron Hotel in Portlaoise, Co Laois, for €6.8m, and agreed a sale and leaseback of one of its Clayton hotels in the UK.

The Dublin freeholds were sold by receiver Kieran Wallace. The Clayton Hotel Cardiff Lane is a four-star, 304-bedroom hotel located in the South Docks area of the capital.

Dalata has agreed to acquire the freehold of the ground and lower-ground-floors, which contain the reception area, bar, restaurant, leisure centre and back-of-house facilities, 170 bedrooms and vacant ground floor area.

The company holds a lease on these elements until 2040, at an annual rent of €2.52m a year, subject to upward-only rent reviews at five-year intervals.

The Clarion Hotel in Liffey Valley is close to the M50 motorway and beside the Liffey Valley shopping centre.

Dalata is acquiring the freehold of the core hotel, which includes 159 bedrooms, a leisure centre, meeting rooms, bar and restaurant, car park and two vacant retail units.

The remaining 194 bedrooms are owned by private investors and are not affected.

The company manages the hotel under a short-term management agreement for the receiver, which generated €500,000 in fee income in 2016.

Irish Independent

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