Hotels group Dalata has agreed separate deals worth €62.5m (£53.6m) and €6.8m (£5.8m) to acquire freehold interests in the Clayton Hotel on Cardiff Lane in Dublin, the Clarion Hotel in Liffey Valley and the Maldron Hotel in Portlaoise.
As part of the package of deals, it has also agreed a sale and leaseback of one of its Clayton hotels in the UK.
The Dublin freeholds were sold by receiver Kieran Wallace while receivers Declan McDonald and Ken Tyrrell of PwC sold Dalata the freehold interest of the Co Laois-based Maldron and its adjoining Midway Foodcourt. Dalata have also agreed a simultaneous sub-sale of the foodcourt to a third party.
Clayton Hotel Cardiff Lane is a 4 star 304-bedroom hotel located in the South Docks area of Dublin – Dalata now owns 193 rooms in the hotel having taken over the ground and lower ground floors (which contain the reception area, bar, restaurant, leisure centre and back of house facilities). Dalata has acquired a lease on these elements until 2040, at an annual rent of €2.52m, subject to upward only rent reviews at five year intervals.
Meanwhile, Clarion Hotel Liffey Valley is a 4 star 353-bedroom hotel located to the west of Dublin adjacent to the orbital M50 motorway and Liffey Valley shopping centre. Dalata has agreed to acquire the freehold of the core hotel, incorporating 159 bedrooms, the leisure centre, meeting rooms, reception, bar & restaurant, car-park and 2 vacant retail units. The remaining 194 rooms are owned by individual investors and are not included in this sale but on completion the hotel will be rebranded as Clayton Hotel Liffey Valley.
Finally, the Maldron Hotel Portlaoise, a three-star hotel located adjacent to the M7 motorway, hotel contains 90 bedrooms, a bar, restaurant, leisure centre and meeting room facilities. The company now holds a long leasehold on the hotel until 2036.
Dermot Crowley, deputy CEO of business development and finance, said: “We have been seeking to purchase as much of the freehold of Clayton Hotel Cardiff Lane as possible since we floated the company in March 2014. I am delighted that we will now own the majority of the hotel and that as a result of this transaction, we will be able to add much needed conference facilities to the hotel in an area of the property that is currently in a shell and core condition.
“This transaction is also consistent with our stated strategy of buying out the freehold interests of those leased properties with future unpredictable rent reviews. We have managed the Clarion Hotel Liffey Valley since March 2016 and are very excited about the potential of this hotel under the Clayton brand. We believe the proposed sale and leaseback of one of our UK properties represents a very good opportunity to utilise the strength of our balance sheet.
“We are also delighted to have secured the freehold of our Maldron Hotel in Portlaoise. This transaction is consistent with our stated strategy of buying out the freehold interests of those leased properties with future unpredictable rent reviews.”
The full consideration of all deals was paid in cash.
5 September 2017
3 July 2017
7 June 2017
3 March 2017
28 February 2017
21 December 2016
17 November 2016
24 August 2016