Dalata has struck a €2.5m deal to operate the landmark DoubleTree by Hilton Hotel in Dublin 4 for 25 years.
The agreement will see Dalata lease the hotel from German investment fund, Deka, which has reached a deal to purchase the property from Blackstone which put the property up for sale with a €180m price tag in August.
Dalata announcing its intention to bring the business under its Clayton title.
“We are delighted to announce the acquisition of the operating and leasehold interest in this iconic Dublin city centre hotel,” said Dalata head of development and strategy, Shane Casserly.
“The hotel will be an excellent addition to our portfolio and the Clayton brand.
“We will continue to invest in the property to ensure that it retains its position as the leading venue for large conferences and functions in the city. We are delighted to be collaborating with such a respected partner as Deka for this investment.”
The hotel is a four-star city centre property located on the corner of Sussex Rd and Burlington Rd, Dublin 4. It contains 502 bedrooms, two bars, a restaurant and lounge, and a 24-hour gym, as well as conference and meeting facilities.
In 2015, the hotel recorded revenues of €29.5m and full year profit before tax of €2.2m.
Dalata said that had it traded under the terms of the operating lease last year, the hotel would have contributed €4.3m to the group’s Ebitda in 2015.
Dalata also operates the country’s Maldron Hotels.