Hotel group Dalata is to enter the continental European market after it agreed a deal to acquire a new operating leasehold interest in a Dusseldorf hotel.
The company said it had agreed contracts with Art-Invest Real Estate to acquire the operating and leasehold interest in Hotel Nikko Düsseldorf, a four-star hotel located close to the city's central business district, retail quarter and the city's main train station.
The 393-bedroom property has undergone extensive investment in the last number of years. Dalata said it expects to open the hotel for guests on February 15th.
The move is in line with the group’s plans to establish itself in large commercially attractive European cities.
Dalata's chief executive Dermot Crowley said it was a very exciting opportunity for the group.
"Whilst retaining our focus on growth in the UK, we have also been exploring opportunities in Europe that are complementary to our portfolio in the UK and Ireland, " he said. "Hotel Nikko Düsseldorf will be an excellent addition to our Dalata portfolio. A Dalata integration team is working with the local hotel team to ensure a smooth transition into Dalata."
The deal includes a 20-year lease, with the option to extend it further. Rent will be determined by the hotel’s performance, although there is a guaranteed minimum in place. Dalata will also continue to invest in the hotel.
"We are very excited to enter into a long-term partnership with Dalata to support our continuous efforts in improving the quality and positioning of the Nikko Hotel, a true Düsseldorf icon," said Peter Ebertz, head of hotels at Art-Invest. "Dalata has been an excellent partner and we look forward to jointly investing in the property."
