Dalata acquires London hotel in £53.4m deal

Dalata Hotel Group has purchased the Apex Hotel London Wall

Caoimhe Gordon

Dalata has acquired the long leasehold interest in the Apex London Wall Hotel.

The purchase of the hotel from Apex Hotels Limited is valued at £53.4m (€62.2m), with the transaction expected to complete in early July 2023.

Dalata reported there are now 107 years remaining on the lease for the hotel.

This property will be rebranded as Clayton Hotel London Wall following the acquisition and will be the hotel operator’s fifth location in the city.

The four-star hotel has 89 bedrooms and suites, as well as a gym, restaurant and bar. It is located less than 10 minutes walk from Liverpool Street Station.

Dalata reported that the hotel requires minimal investment and expects an Ebitdar (earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs) of around £4.5m next year.

Earlier this year, Dalata acquired a north London hotel in a purchase worth £44.3m.

This hotel, the Maldron Finsbury Park, is expected to open this month, while the Maldron hotel in Shoreditch will open next year.

Following these openings, the total number of rooms available in Dalata hotels in London will rise to 877.

“London is one of the world’s great cities. Securing existing hotels or sites to develop new hotels is very challenging as a result,” chief executive Dermot Crowley said.

“I am delighted that we have managed to secure two new hotels in the city in the space of just four months. It demonstrates our ability to re-invest the funds that we generate from our existing hotels,” he added.

Dalata currently owns 29 hotels, with a further 18 leases and three management contracts.

These hotels are located across Ireland and the UK, as well as one property in Düsseldorf, Germany.

The business reported a profit after tax of €96.7m last year. Revenues for 2022 were €558.3m.