Date: November 2017
Location: Central Glasgow – River Clyde, Scotland
Name: Clayton Hotel – four star, to open 4th quarter 2020
No. of Keys: 300
Developer: Artisan St. Enoch Quarter, a subsidiary of Artisan Real Estate Investors. The construction of the hotel is subject to the receipt of planning permission from Glasgow City Council.
Clive Wilding, property director at Artisan Real Estate Investors said: “We are pleased to have formed a development partnership with Dalata Hotel Group for this flagship regeneration opportunity providing the chance to restore the forgotten Grade A listed Custom House into a part of the new development.
This will complete the bookend of one of Scotland’s most successful retail streets, as well as being within touching distance of the commercial heart of Glasgow. The new hotel forms the key part of a wider mixed-use development, for which the planning process will start shortly, with a view to being on site at the end of 2018 and open for business in 2020.”
Buyer/Lease: Dalata Hotel Group, based in Ireland, have signed a 35 year operating lease, which will be subject to five-year RPI-linked rent reviews.
Dalata already operates seven hotels in the UK, in London (two), Cardiff, Leeds, Birmingham, Belfast and Manchester Airport. Another new Clayton Hotel is also planned for the centre of Manchester. Dalata also operates Maldron hotels in Derry and Belfast Airport with two further Maldron hotels under construction in Belfast and Newcastle.
Dalata is Ireland’s leading hotel company where it operates 12 Clayton and 12 Maldron hotels.
Glasgow follows on from a £60m triple hotel deal in May 2017…€62.5m (£53.6m) and €6.8m (£5.8m) to acquire freehold interests in the Clayton Hotel on Cardiff Lane in Dublin, the Clarion Hotel in Liffey Valley and the Maldron Hotel in Portlaoise.
THPT Comment: In 10 short years Dalata has grown tremendously – it was founded in June 2007 by Pat McCann, previously Ryan Hotels in 1969 and then CEO of Jurys in 1989.
With investment from TVC Holdings plc and clients of Davy Property Holdings, in 2007 Dalata acquired a group of companies from Choice Hotels Ireland and in 2008 Dalata rebranded its leased hotels under its own Maldron Hotels brand.
In March 2009 Dalata Management Services (“DMS”) was set up in order to provide hotel operational and management expertise to receivers and banks. Hotels operated by DMS typically continue to trade under their own brand names as partner hotels within the Group.
In March 2014 Dalata raised €265 million through the issue of existing ordinary shares and listed on AIM and ESM. Dalata’s strategy at the initial admission was to leverage the Group’s core asset management, hotel operation and development capabilities to grow its business through a mixture of owned, leased and managed hotel assets.
In June 2016, Dalata were listed on the Irish Stock Exchange and the Official List of the Financial Conduct Authority of the UK by way of a standard listing, and to trading on the Irish Stock Exchange’s and the London Stock Exchange’s respective main markets for listed securities.
In keeping with the stated strategy, Dalata has acquired 24 hotels since June 2014. These hotels are located in both in Ireland and the UK. The largest acquisition by the Group was the Moran Bewley’s Hotel Group for an enterprise value of €453,000,000, representing 9 of the Group’s owned portfolio.
Since May 2015 the Group has re-branded ten of the hotels in it’s owned portfolio as Clayton Hotels. This signified completion of the first phase of the planned roll out whereby at the end of 2015, Clayton Hotels brand had a total of 13 hotels. At the end of 2016, there were a total of 17 Clayton Hotels.