Ireland’s Dalata makes another big deal

Ireland’s growing hotel giant Dalata just became bigger by acquiring the nine-hotel, 2,506-room Moran Bewley’s Hotel Group based in the UK for €455 million (US$567 million), which completes the investment of proceeds from its initial public offering.

The Irish Independent reported that the purchase will be paid with cash and the issuance of 10% of its shares. Dalata will also repay about €280 million (US$349 million) of debt on the Moran Bewley’s group’s books.

The Moran family will be retain the Red Cow Moran Hotel in Dublin, paying Dalata approximately €8m (US$10 million).

The nine hotels going to Dalata, which is led by chief executive Pat McCann and operates under the Maldron brand, are in Dublin, Cork, London, Manchester and Leeds. The deal will increase the company’s hotel portfolio to approximately 50 hotels.

“The acquisition of the Moran Bewley’s Hotel Group is a transformational development for Dalata,” said McCann. “It is a business we have admired for a long time and the acquisition is a rare opportunity to acquire a large well invested portfolio of hotels.”