Dalata Hotel Group operates all the Clayton and Maldron hotels in Ireland
Dalata Hotels sold for €1.4 billion to Scandinavian property companies
THE sale of Dalata Hotel Group will provide better access to capital and a larger platform to “accelerate growth” according to senior figures at the organisation.
Dalata, which operates all the Clayton and Maldron hotels in Ireland, was this week bought by Scandinavian property companies Pandox and Eiendomsspar for €1.4 billion.
The Dalata Board believes the acquisition is in the best interests and represents the most effective route to enhance value for Dalata shareholders.
The company said it will retain its staff, management team and Dublin headquarters as it continues to expand as an international hotel group.
Dalata shareholders will get €6.45 in cash per share, representing a premium of about 12 per cent to the closing price on June 2 – the day before the Scandinavian hotel investors first disclosed their interest in the Irish company.
An earlier proposal in June from Pandox and Eiendomsspar, valued at €1.3 billion, was rejected by Dalata.
Sweden-based Pandox will own 91.5 per cent of the entity taking over Dalata, while Norway-based Eien-domsspar will own 8.5 per cent, the companies said in a statement.
Dalata operates 55 hotels in Ireland and the UK, and aims to open new hotels in Europe, including in Berlin and Madrid.
It launched a strategic review in March to explore options for enhancing shareholder value, including a potential sale.
Dermot Crowley, CEO of Dalata, said the deal represents an exciting new chapter for Dalata in which it will become part of a larger hotel platform and will further accelerate its growth.
