Dalata, Ireland’s biggest hotel group, is to open a new Clayton Hotel in Aldgate, London.
The group has exchanged contracts to acquire the long leasehold interest of the hotel, which is currently under development, for a total consideration of £91m (€100m).
The deal will be funded by an additional debt facility that has been secured from the company’s existing banking partners, Dalata said in a statement today.
The hotel will have 212 rooms, with a restaurant, bar and access to a fitness centre.
It will be located adjacent to Aldgate East Underground Station and in close proximity to the new Liverpool Street and Whitechapel Crossrail stations, both of which are scheduled to open in December.
“This new hotel gives us a presence in a key central location within the city and is ideally located for corporate customers who want to be close to the City of London and leisure guests visiting the many attractions that the city has to offer,” Dermot Crowley, deputy CEO – business development & finance, said.
The construction of the hotel, which will be branded Clayton Hotel Aldgate London, is expected to be completed and operational towards the end of this year.
As part of the transaction Dalata will acquire the entire issued share capital of Hintergard Limited from Aldgate Hotel Holdco, an investment vehicle of an international private equity real estate investor.
Hintergard owns the 300 year leasehold interest of the hotel under development. The transaction is conditional on the completion of the hotel to an agreed specification.
Dalata, which owns or leases 39 hotels in Ireland and the UK, has a pipeline of almost 2,000 rooms across key UK cities such as London, Birmingham, Glasgow, Manchester and Bristol.
Last year Dalata, which operates the Clayton and Maldron Hotels, reported revenue of €348.5m and a profit after tax of €68.3m.