Dalata Hotel Group announces purchase of new London hotel for £44.3 million
The Group’s first Maldron Hotel in London
Dalata Hotel Group plc (“Dalata” or “the Group”), the largest hotel operator in Ireland, with a growing presence in the United Kingdom and continental Europe, is pleased to announce the addition of a new 192-bedroom hotel at 240 Seven Sisters Road, Finsbury Park, North London to its hotel portfolio. Under the transaction, Dalata has acquired the entire issued share capital of Tide Developments (4) Limited (“TD4”) for a total consideration of £44.3 million (€49.7 million) from Furadino Holdings Limited. TD4 has a gross asset value of £45.1 million and owns the freehold interest of the hotel property. The total consideration will be financed from Dalata’s existing cash and banking facilities.
The newly finished hotel, which has never traded, consists of 192 bedrooms, ground floor lobby and a restaurant and bar. Prior to opening in summer 2023, Dalata will invest in excess of £2 million to enhance the property and launch under the Maldron brand. The hotel, with an expectation of stabilised annual earnings of £4 million, will be Dalata’s first Maldron hotel in London, its 18th hotel in the UK and will create over 50 jobs locally. Conveniently located within walking distance of the Emirates Stadium, the hotel is adjacent to Finsbury Park Station, with extensive National Rail, London Underground and bus services offering direct links to King’s Cross St Pancras and the centre of London.
The property was constructed using the Vision Modular System, which can result in as much as a 40 per cent saving in the embodied carbon emissions when compared with traditional methods of construction. The sustainably designed hotel is BER A rated, includes photovoltaic panels, and is expected to achieve BREEAM ‘Excellent’ accreditation.
Dermot Crowley, CEO, Dalata commented on the announcement:
“London is a key strategic growth market for Dalata. We are very excited to be opening our first Maldron hotel in the city in advance of our Maldron in Shoreditch which is currently under construction. This acquisition represents an outstanding opportunity to operate a new, sustainably built, hotel in a vibrant and developing area as we continue our ambitious UK expansion plan. The strength of our balance sheet has been a crucial element in enabling us to make this investment as we continue to create value for all of our stakeholders.”
Shane Casserly, Corporate Development Director, Dalata added:
“Acquiring a new hotel asset in London, in challenging funding markets, that will be operational in the summer of 2023, is a fantastic achievement by the Group. This transaction highlights our appetite for growth as well as the flexibility of our business model, which enables us to grow through acquisition, development and leasing. We are excited by the excellent sustainability credentials of the property as we continue to make progress on our ambitious targets.”