REG-Dalata Hotel Group PLC Dalata Hotel Group PLC: Acquisitions

Dalata HotelAnnouncement

04/10/2023 07:00

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   Dalata Hotel Group PLC (DAL,DHG)
   Dalata Hotel Group PLC: Acquisitions

   04-Oct-2023 / 07:00 GMT/BST

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   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:  1 www.dalatahotelgroup.com

    

   Contacts

   Dalata Hotel Group plc              Tel +353 1 206 9400
   Dermot Crowley, CEO
                                       investorrelations@dalatahotelgroup.com
   Shane Casserly, Corporate
   Development Director
   Carol Phelan, CFO

   Graham White, Head of Investor Relations
    
    
   Joint Company Brokers                
   Davy: Anthony Farrell               Tel +353 1 679 6363
   Berenberg: Ben Wright               Tel +44 20 3753 3069
                                        
   Investor Relations and PR | FTI     Tel +353 86 401 5250
   Consulting
   Melanie Farrell                     dalata@fticonsulting.com

    

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   The issuer is solely responsible for the content of this announcement.

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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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