Dalata to acquire £91m Clayton hotel scheme
Ireland’s Dalata hotel group has exchanged contracts to buy the long-leasehold interest of a hotel under development in Aldgate, E1, for £91m.
The construction of the hotel, which will be branded as Clayton Hotel Aldgate London, is expected to be completed and operational towards the end of this year.
As part of the deal, Dalata will acquire the entire issued share capital of Hintergard Limited, which owns the 300-year leasehold, from Aldgate Hotel Holdco LLC, the investment vehicle of an international private equity real estate investor.
Ireland’s Dalata hotel group has exchanged contracts to buy the long-leasehold interest of a hotel under development in Aldgate, E1, for £91m.
The construction of the hotel, which will be branded as Clayton Hotel Aldgate London, is expected to be completed and operational towards the end of this year.
As part of the deal, Dalata will acquire the entire issued share capital of Hintergard Limited, which owns the 300-year leasehold, from Aldgate Hotel Holdco LLC, the investment vehicle of an international private equity real estate investor.
The deal will be funded by an additional debt facility secured from the company’s existing banking partners.
The hotel will have 212 rooms, with a restaurant, bar and access to a fitness centre. It will be located next to Aldgate East Underground Station and in close proximity to the new Liverpool Street and Whitechapel Crossrail stations, both of which are scheduled to open in December 2018.
Dermot Crowley, deputy chief executive of business development and finance at Dalata, said: “ This new hotel gives us a presence in a key central location within the city and is ideally located for corporate customers who want to be close to the City of London and leisure guests visiting the many attractions that the city has to offer.”
Dalata added that its gearing levels will increase in the short term as a result of the deal, but will still remain below its guided upper level of 3.5 times net debt to EBITDA. The hotel is projected to be earnings per share enhancing from its first year of operation.
The deal means the hotel group now has a pipeline of almost 2,000 rooms across key UK cities such as London, Birmingham, Glasgow, Manchester and Bristol.
CBRE advised Delata, while the vendor instructed Savills on the transaction.
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