Deka Immobilien is to buy the freehold interest of the property. Dalata will have a 25-year operating lease, subject to certain conditions, including periodic rent reviews. The deal is expected to be completed in November. Under the deal, the hotel will be rebranded as a Clayton hotel.
The hotel is a four-star property located on the corner of Sussex Road and Burlington Road in Dublin. It contains 502 bedrooms, two bars, a restaurant and lounge, a 24-hour gym and conference and meeting facilities.
Last year, the hotel recorded revenues of €29.5m and a pre-tax profit of €2.2m. Dalata said it would have contributed €4.3m to the company in earnings if it had traded under the terms of its new operating lease.
"The hotel will be an excellent addition to our portfolio and the Clayton brand. We will continue to invest in the property to ensure that it retains its position as the leading venue for large conferences and functions in the city,' said Dalata's hea dof development and strategy Shane Casserly.