Ireland’s largest hotel company, Dublin-based Dalata Hotel Group with 41 hotels and more than 7,000 rooms, has announced its intention to undertake a share offering at €3.75 per share to raise gross proceeds of approximately €160 million (US$179 million).
The offering will be principally used to finance further hotel acquisitions, development capital expenditure on existing assets as well as new build opportunities.
Coincidentally, the Belfast Times reported on Thursday that Dalata could be a suitor for Dublin’s famous Gresham Hotel, which is soon expected to be put on the market by NAMA for price north of €60 million (US$67 million).
The announcement of Dalata’s offering came when it reported results of the first six months of 2015 with pre-tax profits of €2.7 million (US$3 million), up from €0.9 million (US$1 million) the same time last year. Revenues for the six month period rose to €97.7 million (US$109 million) from €34.9 million (US$39 million) the previous year – an 180% increase.
The company said its results reflect the acquisition of nine Moran Bewley hotels in February and five additional hotels in the six-month period, as well as three hotels bought in the second half of 2014.