Dalata to be acquired by Scandinavian hotel investors Pandox and Eindomsspar.
It has emerged that Scandinavian property investors Pandox and Eindomsspar are to acquire Ireland’s largest hotel business Dalata Hotel Group for €1.4bn.
Under the terms of the deal Dalata’s shareholders will get €6.45 per share, a premium of 35.5% of the shares’ closing price on 5 March.
“This represents an exciting new chapter for Dalata in which we will become part of a larger hotel platform and will further accelerate our growth,” said Dalata CEO Dermot Crowley.
“Our focus remains firmly on our people and our customers. I’m proud to continue to lead our team in close partnership with our new owners. Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company.”
European focus
Dalata operates 55 hotels across Ireland and the UK under the Maldron and Clayton Hotel brands.
It plans to open new hotels in Europe including Berlin and Madrid.
The business launched a strategic review in March to explore ways to enhance shareholder value, including a possible sale.
“Dalata’s portfolio consists of well-established and highly profitable four-star hotels in strong locations, which will further expand Pandox’s footprint in several large, dynamic and growing hotel markets in Northern Europe,” said Liia Nõu, CEO of Pandox.
“The hotel properties are of high technical standard and will contribute positively to the overall quality of Pandox’s hotel property portfolio. Through this cash flow and value-accretive transaction we will also deepen our already strong partnership with Scandic Hotels Group, which is based on operational and commercial excellence. We have the utmost respect for Dalata, the business it has created and its staff, and we are excited at the prospect of joining forces for future growth.”
Christian Ringnes, chair of Eiendomsspar, added: “As the largest shareholder in Pandox and a joint offeror, we are enthusiastic about the acquisition of Dalata, which we view as one of the finest hotel companies in Northern Europe. We believe the combined forces of Pandox, Dalata and Scandic Hotels will provide strength and be a source of significant value creation.”
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