Dalata Hotel Group plc (“Dalata” or “the Company”) is pleased to announce that it has exchanged contracts to acquire the long leasehold interest of the Apex Hotel London Wall (“the Hotel” or “the Property”), for consideration and a gross asset value of £53.4 million (€62.2 million) from Apex Hotels Limited (“Apex”), subject to standard contractual conditions and approvals.
Apex owns the long leasehold interest, with 107 years remaining on the lease, of the Hotel situated at 7-9 Copthall Ave, London EC2R 7NJ, in the heart of the City of London. The consideration will be payable from Dalata’s existing facilities and the transaction is expected to complete in early July 2023.
The existing Property is an Upper Upscale Hotel, with full four-star facilities consisting of 89 bedrooms and suites, a gym, a ground-floor lobby and a contemporary restaurant and bar. The Hotel is conveniently located less than 10 minute's walk from Moorgate, Bank and Liverpool Street Stations which have extensive National Rail, London Underground and bus services, providing excellent connectivity across London. The Property, with an expected EBITDAR of approximately £4.5 million in 2024, will require minimal initial investment and, on completion of the transaction, Dalata will rebrand the Hotel as Clayton Hotel London Wall.
The acquisition of this going concern in a prime London location further demonstrates Dalata’s ability to increase its footprint in London, a major global hub for both business and tourism. This latest acquisition will bring the total number of Dalata bedrooms in London to 877 keys, once Maldron Hotel Finsbury Park opens in June 2023 and Maldron Hotel Shoreditch opens in 2024.
Dermot Crowley, CEO of Dalata Hotel Group plc, said: “London is one of the world’s great cities. Securing existing hotels or sites to develop new hotels is a very challenging as a result. I am delighted that we have managed to secure two new hotels in the city in the space of just four months. It demonstrates our ability to re-invest the funds that we generate from our existing hotels. We look forward to welcoming our new colleagues into the Dalata family.”
Shane Casserly, Corporate Development Director, Dalata Hotel Group plc, said: “To have acquired such an attractive existing London hotel, in the current market, that will allow us to further expand the Clayton brand, is a fantastic achievement for the business. London remains a key development market for us and we remain focused on securing future opportunities for the portfolio.”
Angela Vickers, Chief Executive Officer, Apex Hotels Ltd., said: “The sale of Apex London Wall will allow us to further expand the Apex brand through acquisition. We are keen to add to our hotel portfolio, particularly in more rural locations. We are sad to say goodbye to such a longstanding hotel in the Apex family. London remains an integral destination for our business. Apex City of London Hotel has recently reopened after refurbishment and Apex Temple Court Hotel boasts stylish bedrooms alongside design led event space, restaurants and bars.”