| Dalata Hotel Group PLC (DAL,DHG)
Acquisition of development site in Edinburgh and completion of acquisition of Hard Rock Hotel Amsterdam American ISE: DHG LSE: DAL
Dublin and London, 4 October 2023 | Dalata Hotel Group (“Dalata” or “the Group”), the largest hotel operator in Ireland, with a growing presence in the United Kingdom and continental Europe, continues to expand its footprint. Dalata is expanding its presence in Scotland with the acquisition of a development site at 28 St. Andrew’s Square, Edinburgh. Dalata has also completed the transaction to enter the hotel market in the Netherlands with the acquisition of the leasehold interest in Hard Rock Hotel Amsterdam American, as announced on 21 September 2023. Development Site - St. Andrew’s Square, Edinburgh The development site, which is superbly located fronting on to St. Andrew’s Square, one of the most prestigious areas in Edinburgh and within close proximity to the city’s key corporate and leisure demand drivers, was acquired for a total consideration of £12.5 million, from Aviva Life & Pensions UK Limited. The consideration was paid from Dalata’s existing cash and banking facilities. The site includes a Category A listed building which is currently vacant and approved for office use, with planning permission granted for an extension to both the rooftop and rear of the property. The Group plans to submit a revised planning application in Q1 next year, enabling the construction of a new 4-star Clayton Hotel, which is expected to be completed by mid-2026. The Group’s hotel scheme is designed to work within the new building envelope permitted under the existing planning permission. Subject to a successful revised planning application the hotel will incorporate 153 bedrooms, a bar, restaurant, dry gym and two large meeting rooms with stunning period features on the first floor overlooking St. Andrew’s Square. The overall investment in the project, including the site purchase, will be circa £48 million, creating circa 60 new employee positions when the hotel is operational. The new hotel, as part of our sustainability strategy, will be one of our first to be designed to operate with zero on-site carbon emissions. As a conversion scheme, it will also have considerably lower embodied carbon than a new build.
Clayton Hotel Amsterdam American Further to the announcement of 21 September 2023, Dalata has completed the acquisition of a leasehold interest in Hard Rock Hotel Amsterdam American. Pursuant to the transaction, Dalata has acquired the entire issued share capital of American Hotel Exploitatie BV, which holds the operating leasehold, for a total consideration of €29.5 million from Zien Group. The consideration will also be financed from Dalata’s existing cash and banking facilities. The 4-star hotel, which is owned by Deka Immobilien, is centrally located in Amsterdam on the corner of Leidsekade Canal and Leidseplein Square, Amsterdam’s central district of culture and entertainment. The hotel consists of 173 bedrooms, ground floor lobby, Café and Bar. Renowned for its iconic Café and Bar Americain, this landmark hotel has undergone a €14.5 million renovation since 2020. The hotel is being rebranded to Clayton Hotel Amsterdam American and Dalata will invest approximately €4.5 million to enhance the property over the coming years. Included within these enhancements is a substantial investment in its sustainability credentials, which will result in a significant reduction in the carbon footprint of the property. The hotel with an expectation of stabilised annual earnings of circa €5 million, will be Dalata’s first hotel in Amsterdam and second hotel in continental Europe. Dermot Crowley, CEO, Dalata commented on the announcement: “Today is an important day for the Dalata team as we announce two significant developments for the Group. Edinburgh has long been a target city for us to locate our brands and we are delighted to have secured such a prestigious building in the centre of the city. This will be our third hotel in Scotland. We are also delighted to have secured our first Clayton hotel in Amsterdam. The American Hotel has a renowned reputation in the city and we will continue to protect and enhance that with our Clayton brand. I offer an especially warm welcome to the hotel staff today, as they join the wider Dalata family. In the year to date, we have announced four new opportunities in three of the strongest city hotel markets in Europe - London, Amsterdam and Edinburgh. We will continue to seek out further opportunities in our target markets.” Shane Casserly, Corporate Development Director, Dalata added: “Edinburgh is one of the top performing hotel markets in Europe and we are delighted to secure a development site in such a prestigious location. Our development team has extensive experience and history in delivering complex projects, we look forward to collaborating with Edinburgh authorities, to deliver a flagship Clayton hotel with zero onsite operational carbon by mid-2026. Additionally, Amsterdam has been a priority location for Dalata since we commenced our journey into continental Europe. To have acquired such an attractive existing hotel, in a city which has traditionally high barriers of entry, is a testament to our standing in the market and a credit to all involved across the Group.”
ENDS
About Dalata Dalata Hotel Group plc was founded in August 2007 and listed as a plc in March 2014. Dalata is Ireland’s largest hotel operator, with a growing presence in the UK and continental Europe. The Group’s portfolio comprises 53 three and four-star hotels with 11,412 rooms and a pipeline of over 1,300 rooms. The Group currently has 32 owned hotels, 18 leased hotels and three management contracts. Dalata successfully operates Ireland’s two largest hotel brands, the Clayton and the Maldron Hotels. For the period ended 30 June 2023, Dalata reported revenue of €284.8 million and a profit after tax of €42.0 million. Dalata is listed on the Main Market of Euronext Dublin (DHG) and the London Stock Exchange (DAL). For further information visit: www.dalatahotelgroup.com
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| ISIN: | IE00BJMZDW83, IE00BJMZDW83 |
| Category Code: | ACQ |
| TIDM: | DAL,DHG |
| LEI Code: | 635400L2CWET7ONOBJ04 |
| OAM Categories: | 3.1. Additional regulated information required to be disclosed under the laws of a Member State |
| Sequence No.: | 275632 |
| EQS News ID: | 1740499 |
| End of Announcement | EQS News Service |
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