Ireland’s largest hotel operator, Dalata Hotel Group has conditionally agreed to acquire the operating interest of the Double Tree by Hilton Hotel, formerly known as “The Burlington Hotel” in Dublin 4.
On completion of the Acquisition, Dalata will commence operations in the hotel through a 25 year Operating Lease agreed with Deka as the new owners of the property. The lease will be subject to certain conditions including periodic rent reviews. The acquisition is expected to complete in November.
The Hotel is a four star city centre property located on the corner of Sussex Road and Burlington Road, Dublin 4. It contains 502 bedrooms, two bars, a restaurant and lounge, a 24-hour gym and extensive conference and meeting facilities.
The transaction consideration for Dalata is €2.5 million subject to certain adjustments. In 2015, the Hotel recorded revenues of €29.5 million and full year profit before tax of €2.2 million. If it had traded under the terms of the Operating Lease the hotel would have contributed €4.3 million to Dalata Group EBITDA in 2015. On completion, the Hotel will be rebranded as a Clayton hotel.
Head of Development and Strategy at Dalata Hotel Group, Shane Casserly said, "We are delighted to announce the acquisition of the operating and leasehold interest in this iconic Dublin City Centre hotel. The hotel will be an excellent addition to our portfolio and the Clayton brand."
He added, "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."
Source: www.businessworld.ie