Dalata Hotel Group has expanded its presence across Europe with two acquisitions in Edinburgh and Amsterdam. The Ireland-based hotel operator has acquired a development site in Edinburgh and completed a deal to enter the Netherlands’ hotel market.
Dalata announced the acquisition of a leasehold interest in Hard Rock Hotel Amsterdam American on September 21.
In the year to date, Dalata has announced four new opportunities in three European city hotel markets — London, Amsterdam and Edinburgh, Dalata said in a statement.
Operators of the Clayton and the Maldron Hotel brands in Ireland, Dalata has 53 properties totaling 11,412 rooms across Europe, with more than 1,300 rooms in the pipeline. Dalata has 32 owned hotels, 18 leased hotels and three management contracts.
EDINBURGH
Dalata acquired the development site fronting onto St. Andrew’s Square in Edinburgh for £12.5 million ($15.09 million) from Aviva Life & Pensions UK Ltd. The consideration was paid from the company’s existing cash and banking facilities. The site is located fronting St. Andrews Square and is expected to incorporate a new-build, 153-room, 4-star Clayton hotel.
This is Dalata’s first hotel in Edinburgh and the third in Scotland.
The site includes a vacant Category A-listed building, approved for office use with planning permission for the extension of the rooftop and rear of the property. Dalata plans on submitting a new planning application in Q1 2024 for a new-build, 4-star Clayton Hotel, scheduled to be completed by mid-2026.
According to the existing planning permission, Dalata plans to work within the new building structure. The new hotel will feature 153 rooms, a restaurant, a bar, a dry gym and two meeting rooms, subject to approval of the new planning permission.
Aligning with Dalata’s sustainability strategy, the hotel will be the first to operate with zero onsite carbon emissions. As a conversion scheme, the property will also have lesser embodied carbon compared to a new build.
The group’s total overall investment in the project will stand at £48 million ($57.96 million), including the site’s acquisition. The project is estimated to create 60 new vacancies once the hotel becomes operational.
Edinburgh is one of the top-performing hotel markets in Europe and has long been a target city for the group, Dalata said.
“Our development team has extensive experience and history in delivering complex projects, we look forward to collaborating with Edinburgh authorities to deliver a flagship Clayton hotel with zero onsite operational carbon by mid-2026,” Shane Casserly, corporate development director, Dalata, said in a release.
CLAYTON HOTEL AMSTERDAM AMERICAN
Dalata has acquired the entire issued share capital of American Hotel Exploitatie BV, which holds the operating leasehold, for €29.5 million ($30.88 million) from Zien Group. This sum will also be financed from the group’s existing cash and banking facilities.
This will be Dalata’s first hotel in Amsterdam and second in continental Europe.
Owned by Deka Immobilien, the hotel is located on the corner of Leidsekade Canal and Leidseplein Square, Amsterdam’s central district of culture and entertainment. The hotel features 173 rooms, a lobby on the ground floor, a café and a bar. The landmark hotel, famed for its iconic Café and Bar Americain, underwent a €14.5 million ($15.18 million) renovation in 2020.
Dalata will invest €4.5 million ($4.71 million) to upgrade the property and rebrand it to Clayton Hotel Amsterdam American. Planned enhancements to the hotel include a considerable investment in its sustainability credentials, resulting in a major reduction in the property’s carbon footprint.
The hotel has anticipated stabilized annual earnings of €5 million ($5.23 million).
“Amsterdam has been a priority location for Dalata since we commenced our journey into continental Europe. To have acquired such an attractive existing hotel, in a city which has traditionally high barriers of entry, is a testament to our standing in the market and a credit to all involved across the Group,” Casserly said.