City centre hotel bought in £31m deal
Ireland’s largest hotel operator has bought Birmingham’s Hotel La Tour, in a £31m deal.
Dalata Hotel Group has acquired the entire share capital of Hotel La Tour Birmingham, which owns the hotel on Park Street in the city centre.
The 174-bedroom hotel was built in 2012 and is extremely well-positioned for Birmingham’s HS2 station planned for Curzon Street, which is due to open in 2026.
Dalata says it will rebrand the hotel as Clayton before the end of the year.
Dermot Crowley, deputy CEO at Dalata, said: “Hotel La Tour in Birmingham represents an outstanding opportunity to operate a newly built hotel in the centre of one of the largest cities in the UK.
“The acquisition is consistent with our stated strategy of rolling out both our Maldron and Clayton hotel brands across the larger UK cities.”
Dalata will fund the acquisition from its existing banking facilities.
Hotel La Tour generated EBITDA – a measure of operational profitability – of £1.9m in the year to March.
Dalata Hotel Group has a current portfolio of 37 three and four star hotels with over 7,500 rooms. It operates Ireland’s two largest hotel brands, the Clayton and the Maldron Hotels across Ireland and the UK, as well as managing a portfolio of partner hotels.
It is listed on the Main Market of the Irish Stock Exchange and the London Stock Exchange, reported revenues of €290.5m (£260m) in 2016.
Squire Patton Boggs, led by corporate partner Andrew Glaze and real estate partner Nick Green, advised Dalata Hotel Group on the acquisition.