Dalata buys Edinburgh hotel scheme

Dalata is expanding its presence in Scotland after buying a development site on St Andrew Square in Edinburgh for £12.5m. The Ireland-based hotel group bought the site at 28 St Andrew Square from Aviva Life & Pensions UK, using its existing cash and debt facilities. Chief executive Dermot Crowley said: “Edinburgh has long been a target city for us to locate our brands and we are delighted to have secured such a prestigious building in the centre of the city. This will be our third hotel in Scotland.” The site includes a Category A listed building, which is currently vacant and approved for office use. Planning permission has already been granted for an extension to both the rooftop and rear of the property. Dalata plans to submit a revised planning application early next year, and will then develop a 153-bedroom, four-star Clayton Hotel, which is expected to be completed by mid-2026. The hotel scheme is designed to work within the new building envelope permitted under the existing planning permission. The plans will also include a bar, restaurant, dry gym and two large meeting rooms with period features on the first floor, overlooking St Andrew Square. Dalata said it expected to spend around £48m on the project. Dalata has also completed the transaction to enter the Netherlands hotel market, buying the leasehold interest in the Hard Rock Hotel Amsterdam American. It paid Zien Group €29.5m for the lease of the four-star hotel, which is owned by Deka Immobilien. Crowley said: “In the year to date, we have announced four new opportunities in three of the strongest city hotel markets in Europe – London, Amsterdam and Edinburgh. We will continue to seek out further opportunities in our target markets.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews