€455m hotel deal praised

The purchase by the country’s largest hotel operator Dalata of the Moran Bewley’s Group for €455m is a transformational move that carries a potential share price upside of as much as 42%, according to analysts.

The deal not only adds more than 50% to Dalata’s room base and increases the number of owned rooms from just under 800 to more than 2,900, but could also increase earnings to €60m by 2016.

With earnings before interest, taxation, depreciation and amortisation (EBITDA) of €32.5m, rising on a pro-forma basis to €46m with the inclusion of the Moran Group assets, the forecast represents a very significant rise in earning potential as a result of the deal.