Dalata sold for €1.4bn to Scandinavian investors

DALATA, which operates all the Clayton and Maldron hotels in Ireland, saw its shares cease trading on the Dublin Stock Exchange after its €1.4bn sale to Scandinavian investors has completed.

The country’s biggest hotel group is being bought by Pandox and Eiendomsspa.

During an initial announcement in July, the Dalata Board believes the acquisition is in the best interests and represents the most effective route to enhance value for 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 operates 56 hotels under the Maldron Hotel and Clayton Hotel brands, mostly 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.

The closing of the sale marks another exit from the stock exchange in Dublin, which is operated by Euronext.

Companies including Smurfit Kappa, CRH, Flutter Entertainment, DCC, Greencore and Datalex are among those that have left the Dublin Stock Exchange in recent years.

In August, the hotel group reported half year revenues of €306.5m, an increase of 1% on the €302.3m reported the same time last year. However, its profit after tax sank by 45% to €19.6m from €35.8m on the back of Strategic Review related costs and an increase in non-cash accounting charges.