29th Sep 2015 09:56
LONDON (Alliance News) - Dalata Hotel Group PLC Tuesday said it has extended the lease on the Ballsbridge Hotel in Dublin to at least April 2018, but that the Clyde Court Hotel, also in Dublin, will close.
Its lease on the Clyde Court Hotel will be surrendered in line with the terms of the lease agreement and the hotel will cease to operate from January 1. The site will be redeveloped by Chartered Land, the owner of both the Ballsbridge and Clyde Court hotels.
Dalata said that no job losses will occur from the hotel closure and the suppliers will be paid in full.
?While there is a certain sadness at the closure of the Clyde Court Hotel, I am delighted that the Ballsbridge Hotel will continue in operation until at least April 2018. Dalata has an excellent working relationship with Chartered Land and we look forward to working with them over the coming years," Chief Executive Pat McCann said in a statement.
"Our staff at the Clyde Court Hotel are truly excellent professionals and we are very keen to retain their services across our large network of hotels. We will be meeting with loyal and supportive customers over the coming days to discuss how best we can accommodate them in our other Dublin hotels. The certainty that we will operate the Ballsbridge Hotel until at least April 2018 is very good news not least for our employees, customers and suppliers but also ensuring that there are four hundred rooms and a multitude of meetings rooms available in a market that requires additional hotel space," he added.
Dalata recently raised EUR160 million in fresh equity capital in order to acquire additional freehold hotels in Ireland, add bedrooms to existing hotels, and explore opportunities to build new hotels in Dublin.
It announced earlier in the month that it would raise the money through the issue of 42.7 million shares at EUR3.75 each, with 14.6 million shares issued through a firm placing and 28.1 million shares through a placing and open offer.
However, the fundraising remains conditional on shareholder approval at a meeting scheduled for October 5.
Shares in Dalata were down 0.1% on Tuesday at 334.75 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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