Dalata Hotel Group plc (Dalata) announces that it has exchanged contracts for the purchase of the entire issued share capital of CG Hotels Dublin Airport Limited, which holds the long leasehold interest in The Radisson Hotel, Dublin Airport, for a consideration of €83m, subject to contractual conditions and regulatory approval. The vendor is a related party of Emerald Investment. Windward Management has been the hotel's operating partner. The total consideration will be financed from Dalata’s existing cash and banking facilities.
The existing Property, on c. 1.8ha, located at Dublin Airport, is a four-star hotel with full four-star facilities consisting of 229 bedrooms, extensive meeting and event facilities, a bar, a restaurant, and substantial on-site parking. The current Hotel had an EBITDA pre-franchise fees and management fees, of c. €6.5m in 2023 with consolidated gross assets of €83m at December 2023, and requires limited initial investment as it underwent a significant refurbishment programme in 2019. The Hotel also enjoys the benefit of two significant planning approvals, offering development opportunities into the future. Upon completion of the Transaction, the Hotel will be rebranded as a Clayton hotel. The remaining tenure of the leasehold is 107 years, and the Transaction is scheduled to close in H1 2025, subject to CCPC (Competition and Consumer Protection Commission) approval.
Shane Casserly, Deputy CEO of Dalata Hotel Group commented: “The acquisition of this Hotel is a compelling opportunity to secure a strong revenue-generating hotel, in an excellent location. This Hotel is well-positioned to provide hospitality services to Dublin Airport passengers and the greater north Dublin community, supporting both the local and national economies. The Hotel aligns with our investment criteria and offers us the very attractive opportunity to invest and further develop the Hotel offering on the overall site, delivering greater investment returns in the future. Our advisors are ready to engage with the CCPC immediately and subject to their approval, we look forward to welcoming the Hotel and our new colleagues into Dalata in the first half of 2025.”
Dermot Crowley, CEO of Dalata Hotel Group commented: “This acquisition is an exceptional opportunity in a vibrant hotel market. We will continue to balance disciplined growth, capital efficiency and financial strength with returns to shareholders,”
Patrick Coyle, Chairman of Windward Asset Management commented: “The Radisson Blu Dublin Airport has been successfully managed by Windward Management for many years, and we would like to acknowledge the ongoing commitment of management and staff in delivering top-class performance and customer service. Their work has created a strong foundation that will undoubtedly benefit the Property’s future stakeholders. The completion of this Transaction is subject to regulatory approval, which may take several months to secure. During this period, the commitment of all involved is much appreciated as we work towards a seamless transition.”
Image source - Pexels.
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