Irish hotel group Dalata said on Wednesday that it had entered into exclusive discussions to acquire operating interests in, and to commit to, a leasehold interest in the 399-bedroom DoubleTree by Hilton Hotel in Dublin 4.
The hotel, formerly known as the Burlington, is located at Sussex Road and Burlington Road, and is being sold by private-equity group Blackstone in a deal that may achieve about €180 million. Blackstone bought the hotel in 2012 for €67 million and is understood to have spent a further €20 million refurbishing it.
Collaboration
Dalata said it was working in collaboration with another party, which it did not name, which is negotiating to purchase the hotel.
Dalata said the transaction was subject to further due diligence and there could be “no certainty” that it would proceed. The deal may also be subject to the approval of Competition and Consumer Protection Commission. Dalata currently has about 3,200 rooms in Dublin and the city accounts for more than half of its earnings.
German investment bank Berenberg said recently that it expected Dalata to generate double-digit RevPar (revenue per available room) growth in both Dublin and across Ireland this year, with solid growth continuing further out. Although Dalata has put its plans to expand in the UK on hold following the Brexit vote, it has plans to build up to 1,000 rooms across Ireland by 2018.
