Dalata Hotel Group Exploring Sale Options

The board of Dalata Hotel Group has announced that it is undertaking a strategic review to explore options available to optimise capital opportunities for the group, including but not limited to a potential sale thereof.

This week, Dalata reported record revenue for 2024, of €652.2 million, adjusted EBITDA of €234.5 million, and adjusted EBITDA (after rent) of €173.2 million.

Dalata’s portfolio includes 30 owned hotels, which are valued at €1.7 billion (including assets under construction) – 73% of which relates to hotels in Dublin and London. It also operates 22 leased hotels, the majority of which are on long-term institutional lease agreements, with a weighted average lease length of 29 years. Dalata also operates three managed hotels.

In a statement, the board noted that it recognised that the group faces ‘certain structural challenges’, including its relatively small scale in a public market context, its relatively concentrated shareholder register, and a constrained capital base.

The board has appointed Rothschild & Co as its financial adviser, to assist with a review of its strategic options.

“We believe that now is the right time to undertake a rigorous and formal strategic review, which will consider options to increase access to capital and also enhance shareholder value,” said John Hennessy, Dalata’s chairman.