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Dalata Hotel Group has exchanged contracts to acquire CG Hotels Dublin Airport Limited, which holds the long leasehold interest in the Radisson Hotel Dublin Airport, for €83m (£69m).
While the deal is still subject to contractual conditions and regulatory approval, the total sum will be financed from Dalata’s existing cash and banking facilities.
News of the deal comes as Dublin remains a strategic growth market for Dalata.
The four-star hotel, which is on 4.4 acres of land located in close proximity to Dublin Airport’s Terminal 2, has 229 bedrooms, extensive meeting and event facilities, a bar and restaurant, and substantial on-site parking.
The current hotel had an EBITDA pre-franchise fees and management fees of about €6.5m (£5.4m) in 2023, with consolidated gross assets of €8m (£6.6m) as of December 2023, and requires limited initial investment as it underwent a significant refurbishment programme in 2019.
The Radisson-branded hotel also benefits from two planning approvals that offer development opportunities into the future.
Upon completion of the transaction, the airport hotel will be rebranded as a Clayton hotel.
The remaining tenure of the leasehold is 107 years, and the transaction is scheduled to close in H1 2025, subject to CCPC (Competition and Consumer Protection Commission) approval.
Shane Casserly, deputy CEO of Dalata Hotel Group, said: “The acquisition of this hotel is a compelling opportunity to secure a strong revenue generating hotel, in an excellent location. This hotel is well positioned to provide hospitality services to Dublin Airport passengers and the greater north Dublin community, supporting both the local and national economies.
“The Hotel aligns with our investment criteria and offers us the very attractive opportunity to invest and further develop the Hotel offering on the overall site, delivering greater investment returns into the future. We look forward to welcoming the Hotel and our new colleagues into Dalata in the first half of 2025.”
Dermot Crowley, CEO of Dalata Hotel Group, added: “This acquisition is an exceptional opportunity in a vibrant hotel market. We will continue to balance disciplined growth, capital efficiency and financial strength with returns to shareholders.”
