Dalata, Ireland’s largest hotel operator, is selling the Clayton Crown Hotel in London for £21m (€24m).
The company announced the sale of the iconic property to British AG Hotels Group, with the sale expected to be completed by June 2022.
Dalata said the 152-room hotel in Cricklewood, north London, “is no longer viewed as a core hotel property” as the company increasingly looks to more central locations.
The hotel was acquired by Dalata in 2015.
“The consideration represents excellent value for Dalata and the proceeds will be reinvested in the business,” the company said in a statement.
The Clayton brand will not be included in the transaction, although Dalata – which also operates the Maldron brand – has said it will retain hotel management.
All other staff can choose to remain at the hotel in their current roles or apply for vacancies at other hotels, managing director Dermot Crowley said.
“This transaction represents excellent value for money and will assist us in our continued focus on securing key opportunities in attractive cities across the UK and continental Europe,” said Mr. Crowley.
He said London “remains a priority” for Dalata, which will open a new Maldron hotel in Shoreditch in London’s East End in the second half of 2023.
Davy analyst Colin Grant said the Crown’s sale was “logical” given the hotel’s age and environmental credentials, which will require “investment” to bring it up to par with other properties in the group.
Dalata has sought to expand its presence in the UK and continental Europe, opening its first hotel in Bristol last month, its 17th in the UK overall.
In the first quarter, Dalata opened two hotels in Manchester and a Clayton hotel will open in Glasgow later this year.
After 2022, Dalata has another pipeline of new hotel openings across the UK, including hotels in London, Brighton, Liverpool and Manchester.
Dalata aims to increase its UK footprint by 65 per cent between early 2022 and 2024, taking its total UK room count to over 5,000.
Dalata owns or leases 48 hotels with 10,511 rooms and has a pipeline of over 1,500 rooms.
Last year, the group reported sales of 192 million euros and an after-tax loss of 6.3 million euros.
https://www.independent.ie/business/irish/dalata-announces-sale-of-london-hotel-to-uk-group-as-it-focuses-on-more-central-locations-41642171.html Dalata announces sale of London hotel to UK group as it focuses on more ‘central’ locations