Dalata has this morning announced it has entered into arrangements to lease a new hotel in Dublin located in the Dublin docklands. The hotel is expected to open in the fourth quarter 2020 and will comprise of 200 bedrooms and bar and restaurant facilities.
The new hotel will form part a mixed-use development, Spencer Place project, which will extend to over 1m sq ft. The new hotel is located within short walking distance of Dublin’s Grand Canal Dock business centre, next to the Dublin Convention Centre, the IFSC business district and 3arena music venue.
Construction has already started on the hotel and Dalata will operate the hotel on a 35-year operating lease which will be subject to five year rental reviews linked to CPI. Today’s announcement brings the total development pipeline to 9 hotels/2,300 rooms in Dublin and the UK.
According to Goodbody Stockbrokers, "Overall, it is very positive to see Dalata continuing to source new hotels in very attractive sites in Dublin. Given this hotel will be leasehold we expect investment to be negligible (c.€2m) and we expect this hotel to be fully mature in year three. At this point it could add c.€2-3m to EBITDA."