Dalata Hotels splash the cash in €32m Galway and Wexford spending splurge

The Dalata Hotel Group has continued its proposed acquisition spree, by shelling out close to €32m in cash for two well-known four-star properties in Galway and Wexford.

Dalata Hotels splash the cash in €32m Galway and Wexford spending splurge

The group has agreed to buy the Clayton Hotel in Galway and White’s Hotel in Wexford town for a combined €31.7m.

Both hotels — which were put on the market by property consultants, CBRE — were bought from Ulster Bank’s ‘Project Nadal’ property portfolio.

Dalata — the country’s largest hotel operator and owner of the popular Maldron chain of hotels — has operated both properties, under management contract since 2009.

Dalata expects the two transactions to be complete within the next four weeks. There are no plans to change either hotels’ current brand identity.

White’s was redeveloped, to the tune of €55m, nearly a decade ago; while the Clayton — which is located close to Ballybrit Racecourse, on the outskirts of Galway City — was put into receivership by Ulster Bank, in 2010, after its previous owners racked up debts of €20m.

Combined earnings (excluding interest, tax, rent, and management fees) for the two hotels amounted to €2.5m last year, according to Dalata.

The existing management and staff at both properties will remain in place, according to Dalata chief executive Pat McCann, who called the assets “outstanding modern hotel properties, with excellent conference facilities”.

“These acquisitions are part of our strategy to assemble a portfolio of high-quality hotel assets in Ireland.”

At the time of its IPO earlier this year, Dalata said it intended to acquire 25 more hotels, following that up in August by stating it could spend up to €500m over the coming three years. It has recently added the Tower Hotel in Derry (which it bought in August for nearly €5.5m), and Dublin properties the Pearse Street Hotel and Parnell Square Hotel to its Maldron portfolio.

Dalata last month, lost out on the chance to acquire US investment giant, Blackstone’s 25% stake in luxury Dublin hotels, the Clyde Court and Ballsbridge Hotel (formerly, the Berkeley Court and Jurys); but remains confident of its acquisition hopes and is in talks with lenders regarding new debt facilities to fund its ongoing plans.

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