Group behind the Maldron hotel acquires parts of two well known Dublin hotels
Dalata Hotel Group, Ireland’s largest hotel operator, has agreed to acquire parts of the Clayton Hotel Cardiff Lane in Dublin 2 and the Clarion Hotel Liffey Valley in a deal worth €62.5m.
It is expected that Dalata will complete the deal with the receiver for certain freehold interests of the hotels by June 2017.
The deal is subject to approval from the Competition and Consumer Protection Commission.
Dalata will acquire the freehold of the ground and lower ground floors of the Clayton Hotel on Cardiff Lane, which contain the reception area, bar, restaurant, leisure centre and back of house facilities, 170 bedrooms and vacant ground floor area.
The company, which already owns a number of Clayton hotels, will hold a lease on the hotel areas until 2040, at an annual rent of €2.5m a year, subject to upward only rent reviews at five year intervals.
This transaction will bring the total number of bedrooms owned by Dalata in this hotel to 193 out of 304.
Meanwhile, the Clarion Hotel Liffey Valley is a 4 star 353-bedroom hotel located to the west of Dublin adjacent to the M50 motorway and Liffey Valley shopping centre.
Dalata has agreed to buy the freehold of the core hotel, which has 159 bedrooms, a leisure centre, meeting rooms, reception, bar & restaurant, car-park and two vacant retail units.
Dalata currently manages this hotel under a short-term management agreement for the receiver, Kieran Wallace. In 2016 the hotel generated €500k in management fee income alone.
The hotel has an additional 194 rooms which are owned by individual investors and not included in the sale.
Dalata also announced the acquisition of the freehold interest in its 90 room Portlaoise Malrdon Hotel costing €6.8m.
The hotel contains a leisure centre as well as bar, restaurant and meeting room facilities.