Dalata Hotel Group has announced that it is expanding its presence in Scotland, with the acquisition of a development site at 28 St Andrew Square, Edinburgh.
The development site was acquired for a total consideration of £12.5 million (€14.4 million), from Aviva Life & Pensions UK Limited.
The consideration was paid from Dalata’s existing cash and banking facilities.
The site includes a Category A-listed building that is currently vacant and approved for office use, with planning permission granted for an extension to both the rooftop and rear of the property.
Dalata plans to submit a revised planning application in the first quarter of next year, enabling the construction of a new four-star Clayton Hotel, which is expected to be completed by mid-2026.
The group’s hotel scheme is designed to work within the new building envelope permitted under the existing planning permission.
Subject to a successful revised planning application, the hotel will incorporate 153 bedrooms, a bar, a restaurant, a gym, and two large meeting rooms with period features on the first floor, overlooking St Andrew Square.
The overall investment in the project, including the site purchase, will be approximately £48 million (€55.4 million), creating approximately 60 new employee positions when the hotel is operational.
“Edinburgh has long been a target city for us to locate our brands, and we are delighted to have secured such a prestigious building in the centre of the city,” said Dermot Crowley, CEO at Dalata.
“This will be our third hotel in Scotland.”
Dalata has also announced the completion of a transaction to enter the hotel market in the Netherlands, with the acquisition of the leasehold interest in the Hard Rock Hotel Amsterdam American.
The four-star hotel, which is owned by Deka Immobilien, is centrally located in Amsterdam.
The hotel consists of 173 bedrooms, a ground-floor lobby, a cafe, and a bar.
The establishment is famous for its iconic cafe and Bar Americain and has undergone a €14.5 million renovation since 2020.
It will be rebranded to the Clayton Hotel Amsterdam American, and Dalata will invest approximately €4.5 million to enhance the property over the coming years.
The hotel, with an expectation of stabilised annual earnings of approximately €5 million, will be Dalata’s first hotel in Amsterdam and its second in continental Europe.
“Amsterdam has been a priority location for Dalata since we commenced our journey into continental Europe,” said Shane Casserly, corporate development director at Dalata.
“To have acquired such an attractive existing hotel, in a city which has traditionally high barriers of entry, is a testament to our standing in the market and a credit to all involved across the group.”
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