Dalata Hotel Group has announced the purchase of Apex Hotel London Wall in a deal worth €62.2m.
The Clayton and Maldron operator has exchanged contracts with Apex Hotels Ltd to acquire the long leasehold interest of the hotel, which is located in the City of London.
There are 107 years remaining on the lease of the Copthall Avenue property, and Dalata will pay for the transaction from its existing facilities. The deal is expected to be completed in early July.
The existing site is an ‘upper upscale hotel,’ with four-star facilities consisting of 89 bedrooms and suites, a gym, a ground floor lobby, and a contemporary restaurant and bar.
The property, which will be rebranded as Clayton Hotel London Wall, is expected to bring in EBITDAR of £4.5m next year and will required minimal initial investment from Dalata.
The company said the acquisition of a going concern in a prime London location further demonstrated its ability to increase its footprint in the British capital.
“London is one of the world’s great cities,” said Dermot Crowley, CEO of Dalata. “Securing existing hotels or sites to develop new hotels is very challenging as a result.
“I am delighted that we have managed to secure two new hotels in the city in the space of just four months.
“It demonstrates our ability to re-invest the funds that we generate from our existing hotels. We look forward to welcoming our new colleagues into the Dalata family.”
Dalata in February purchased a 192-bedroom hotel on Seven Sisters Road in north London for €50m. It will be the first hotel in London to operate under the Maldron brand.
Clayton Hotel London Wall will be Dalata’s fifth hotel in London, and the third Clayton after the Clayton Hotel Chiswick and Clayton Hotel City of London. It is located close to Moorgate, Bank and Liverpool stations for rail, London Underground and bus services.
Following this transaction and the openings of Maldron Hotel Finsbury Park (the Seven Sisters property) and Maldron Hotel Shoreditch in 2024, Dalata will have 877 bedrooms available in London. Dalata shares were down slightly in trading on Friday morning.
Shane Casserly, corporate development director of Dalata, said: “To have acquired
such an attractive existing London hotel, in the current market, that will allow us to further expand the Clayton brand, is a fantastic achievement for the business.
Dermot Crowley. (Pic: MAXWELLS DUBLIN)
“London remains a key development market for us and we remain focused on securing future opportunities for the portfolio.”
Angela Vickers, CEO of Apex Hotels, said the sale of the London Wall hotel would fund future acquisitions, particularly in more rural locations. Apex retains the Apex Temple Court Hotel off Fleet Street nearby.
Photo: The Apex Hotel London Wall, soon to be rebranded as Clayton Hotel London Wall. (Pic: Dalata)