By Geoff Percival
The Dalata Hotel Group has acquired its first hotel in central London for €100m.
The group has bought the long leasehold interest covering 300 years of a hotel under development at Aldgate and will operate it under its Clayton Hotel brand. The 212-bedroom property, will be beside the Aldgate East Underground station and close to the planned new Liverpool Street and Whitechapel Crossrail stations. It is expected to be completed and open by the end of this year.
“This new hotel gives us a presence in a key central location within the city and is ideally located for corporate customers who want to be close to the City of London and leisure guests visiting the many attractions that the city has to offer,” said Dalata’s deputy chief executive Dermot Crowley.
Analysts see the new hotel enhancing earnings for Dalata from year one. It is being paid for from an additional debt facility.
“We believe this flagship acquisition will be highly accretive, strengthening Dalata’s UK brand and portfolio while further supporting its stated growth ambition”, said Davy, which is likely to increase its 2019 earnings forecast for Dalata by around 4% on the back of the expansion.
This will be Dalata’s third propety in London, but its first in the city centre. The group’s main UK focus remains on building a leading presence in the three-to-four star market in around 20 regional cities outside of London.
Davy expects Dalata to post a 7% year-on-year increase in first half revenues to around €173m when it publishes figures for the six months to the end of June next week.
Dalata is also set to unveil its maiden dividend for shareholders next week.