Davy Stockbrokers have today reported that Dalata is in talks to acquire the leasehold of Hilton Hotel Dublin 4 with another unnamed party which is negotiating the purchase of the property.
The hotel, formerly known as the Burlington, is being sold by private-equity group Blackstone in a deal that may achieve about €180m.
Blackstone bought the hotel in 2012 for € 67m and is understood to have spent a further € 20m refurbishing it. Dalata has a strong working knowledge of the hotel with Jury’s Doyle previously owning and managing it before selling it in 2007.
According to the report, RevPAR (Revenue per available room) achieved in Dalata’s Dublin properties last year was €77. With 21% RevPAR growth in Dublin year-to-date and with this being a 4 star hotel that would command more than the group average, Davys estimate that the RevPAR in the Burlington is closer to €110, thereby adding significant revenue for the group. With no details of rent or margins disclosed, it is too early to estimate the effect on group EBITDA.
Davy Stockbrokers commented, "Dalata currently has c.3,200 rooms in Dublin and derives 56% of its EBITDA from the city. The company continues to add capacity in markets that are experiencing high levels of growth and the addition of 500 rooms in Dublin would be a positive step."
Source: www.businessworld.ie
