4th Jun 2014 07:33
LONDON (Alliance News) - Dalata Hotel Group PLC Wednesday unveiled agreements to make its first acquisitions since it floated on the London Stock Exchange in March.
In a statement, Dalata said it has agreed to acquire the freehold interest in the Maldron Hotel in Dublin for EUR15.3 million in cash, with the deal for the three star hotel expected to be completed in August.
The hotel on Parnell Square has 126 rooms, a bar and restaurant, and two conference rooms. Dalata has operated the hotel since August 2007, under the terms of a 25-year leasehold agreement, with a yearly rent of EUR1.1 million. The next upward only rent review is due in March 2017.
Dalata said the acquisition will consolidate its position in the Dublin market and allow it to develop the business.
In addition, Dalata said it has agreed to acquire the freehold interest in the Pearse Hotel, also in Dublin, for EUR14.4 million in cash, in a deal which also includes the adjoining retail and office properties. The acquisition is scheduled for completion, subject to closing, within the next three months.
Facilities at the hotel include 101 en-suite bedrooms, a bar and restaurant, and five conference rooms. The hotel made a EUR700,000 profit in 2013.
Dalata said it wants to extensively refurbish the hotel and restore it as a four-star hotel, rebranding it as Maldron Hotel Pearse Street.
"Maldron Hotel Parnell Square, which we have operated since it opened in 2007, is a key property in the Maldron brand. The Pearse Hotel, with its excellent location in Dublin city centre, is an exciting addition to the portfolio. Refurbished and re-branded as Maldron Hotel Pearse Street, it will be a perfect complement to the existing six Maldron properties in Dublin at Cardiff Lane, Parnell Square, Smithfield, Tallaght, Citywest and Dublin Airport," Chief Executive Pat McCann said in a statement.
Dalata raised EUR265 million gross as part of its initial public offering in March. The group had originally intended on raising between EUR150.0 million and EUR200.0 million gross, but said the funding round was over-subscribed after attracting strong international institutional investor interest. The net proceeds of the placing are earmarked for building a portfolio of between 16 and 25 hotels throughout Ireland and to pay down debt.
In early trade Wednesday, Dalata shares were down 2.4% at 227.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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