Dalata Hotel Group Buys Four Irish Hotels For EUR40 Million

LONDON (Alliance News) - Dalata Hotel Group PLC said on Thursday it had acquired the leasehold interests of four hotels for EUR40.0 million and said it would be taking over management of the Clarion Liffey Valley Hotel in Dublin under a short-term management contract.

The deal will see the Gibson Hotel Dublin, the Croydon Park Hotel, the Clarion Hotel Cork and the Clarion Hotel Limerick rebranded as Clayton Hotels and add 1,171 rooms to Dalata's portfolio.

Under the transaction, the company will also take over the management of the Clarion Liffey Valley Hotel under a short-term management contract.

The company said the underlying earnings before interest, taxes, depreciation and amortisation, after adjusting for costs and revenues that will not transfer, for the four hotels is expected to be EUR4.1 million in 2015. Including revenues from the short term management contract, underlying earnings before interest, taxes, depreciation and amortisation are expected to be EUR4.7 million.

It said it would be investing EUR14.0 million over the next two years refurbishing the leasehold hotels in Cork, Limerick and London.

"The addition of these hotels continues the rapid growth of the Clayton brand in Ireland and the UK where on rebranding; we will have 18 Clayton hotels," said Dermot Crowley, deputy chief executive.

Shares in Dalata were up 2.7% at 385.00 pence on Thursday morning.

By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland

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