Ireland's biggest hotel group announces two new UK hotels
Dalata, Ireland's biggest hotel group, has announced that it has signed agreements to lease two new hotels due to be built in the UK, as it continues its expansion.
The two hotels – located in Bristol and Birmingham – will deliver an estimated 580 new bedrooms to the group's hotel portfolio.
In Bristol the group will open a new Clayton Hotel to be developed by Artisan Real Estate Investors, while in Birmingham it will develop a new Maldron Hotel, to be developed by design and construction company McAleer & Rushe.
Commenting on the announcement, Dermot Crowley, deputy CEO - business development and finance at the group, said that both cities possess "very strong" hotel markets.
"These two projects demonstrate our ability to grow a very attractive development pipeline of hotels in the UK," Mr Crowley said.
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The hotel group will commence operations in both hotels through 35 year operating leases, subject to five year rent reviews.
It is expected the Bristol hotel will open in the latter half of 2020, while the Birmingham hotel is due to open in the first quarter of 2021.
Dalata now has just over 1,700 rooms in its UK development pipeline, on top of the 1,968 rooms that it already owns or leases.
In Ireland, where the group expects to add around 300 jobs this year, the group operates 12 Clayton and 12 Maldron hotels.
The group, with a €1.2bn market capitalisation, follows a sale and leaseback model. Its backers include the likes of German investment fund Deka, and M&G Real Estate, which is part of Prudential's M&G Investments unit that it's spinning out of the main insurance group.