Lifestyle Hospitality Capital Group (LHC) will acquire a majority stake in Ireland-based The Dean Hotel Group through a dedicated investment vehicle and backed by funds advised by Elliott Investment Management.
Dean Hotel Group’s founder, Paddy McKillen Jr., and the McKillen Co. will retain a stake and stay involved in the business, the company said in a statement.
While no financial details of the transaction were disclosed officially, a report suggested the deal was worth €350 million ($370.54 million).
Dean Hotel Group will continue to manage and operate the hotels under its brands, including The Dean, The Mayson, The Clarence, The Devlin, The Leinster and Glasson Lakehouse.
Earlier this month, Dean Hotel Group acquired the 4-star Clarence Hotel from the rock band U2. Known as Dublin’s ‘rock and roll hotel,’ U2’s Bono and Edge acquired the 43-room in 1992. Specialist lender Leumi UK provided a €43 million ($45.52 million) loan to Dean Hotel Group for the purchase of the historic hotel.
The Dean brand has three hotels operating in Ireland, with two more set to open in the U.K. by 2025. Dean Hotel Group will also continue to internally operate the restaurants and bars under its brands, such as Sophie’s, Roberta’s, Ryleigh’s and Layla’s.
The deal is slated to close in Q4 2023, subject to customary closing conditions.
“We are delighted to have agreed this transaction, which will create a partnership between Ireland’s leading hospitality company and a best-in-class hospitality investment management platform,” said Paddy McKillen Jr. “We are confident that The Dean Hotel Group will continue to thrive, as our partners at LHC both understand and embrace our distinctive Irish vision of hospitality that runs through The Dean Hotel Group portfolio.”
Based in Dublin, Dean Hotel Group recently spun off from Press-Up Hospitality Group. The company has eight freehold properties in Ireland totaling 650 hotel rooms, 30 bars and restaurants, six leisure facilities and a cinema.
“As experienced investors in this space, we were drawn to the exceptional collection of locally designed and curated hotels, bars and restaurants that Paddy and his team have developed. We look forward to continuing to honor The Dean Hotel Group’s Irish heritage as we work together to deliver on the next phase of growth for the portfolio,” said Keith Evans, founder and CEO of LHC.
Founded earlier this year, LHC is a global investment management platform offering partners access to a wide range of value-added investment opportunities in lifestyle hospitality and operational real estate.