Dalata unveils Dublin docklands hotel plan
Ireland's biggest hotel group, Dalata, has entered into arrangements to lease a new four-star hotel in the Dublin docklands.
This hotel, which will have over 200 bedrooms, is located within a short walking distance of the Convention Centre, the International Financial Services Centre (IFSC) and the 3Arena.
Construction has already started and the development, is set to open late next year.
Dalata, headed by CEO Pat McCann, will operate the hotel on a 35-year lease, which will be subject to five-year rent reviews.
"We are delighted to have entered into arrangements to lease a new hotel in the heart of Dublin's thriving North Docks," said deputy CEO business development and finance Dermot Crowley.
"The Dublin hotel market as a whole continues to perform very well and we are pleased that we will be bringing another quality hotel to the city," Mr Crowley added.
"[The] announcement brings the number of hotels in our development pipeline to nine with over 2,300 rooms in Dublin and the UK.
"We remain confident of announcing further new deals in 2019."
The new hotel will form part of the Spencer Place project, which will extend to over one million sq ft and is being developed by a joint venture of Johnny Ronan's Ronan Group Real Estate (RGRE) and Colony Capital.
The scheme includes 430,000 sq ft of Grade A office space, with the potential to increase to 530,000 sq ft.
The office space has been fully let to tech company Salesforce in what was the single biggest commercial letting deal in Irish history.
The group last week said it plans to create 1,500 new jobs over the next five years.
Dalata's development pipeline in Dublin and the UK stands at nine hotels with over 2,300 rooms, following yesterday's announcement.
"In the long-term, we see an additional €1.50/share in value for the remainder of Dalata's UK pipeline target post 2021 that will see the company reach 8,000 new rooms across 20 cities in the UK," said Davy Stockbrokers analyst Joseph Quinn.
While the company is very active in expanding in the UK, in 2017, Dublin accounted for 58pc of Dalata's €348.5m revenue, and 61pc of its €102.6m in earnings before interest, tax, depreciation and amortisation (ebitda).
In November last year, Dalata opened the 189-bedroom Clayton Hotel Charlemont in Dublin - a €40m investment.
Shares in Dublin-listed Dalata were trading up slightly at €5.45 on the Irish Stock Exchange yesterday.