Dalata for Sale? Ireland's Largest Hotel Operator Is a Window into Europe's Market
Dalata Hotel Group, Ireland's largest hotel operator, began a strategic review this month that could lead to a sale of the company, spotlighting investor appetite for European hospitality assets.
This review, with guidance from Rothschild & Co, could lead to a sale. However, as of the March 6 announcement, the company wasn't in talks with potential suitors.
Dalata's review comes as European hotel assets attract increasing interest from international investors seeking inflation hedges and exposure to resilient travel demand.
Dalata runs 55 hotels, primarily under the Clayton and Maldron brands. A majority are in Dublin and London. Its hotel assets were valued at €1.7 billion as of December 31.
Dalata's ProspectsWhile deal activity trended upward in Europe last year, Dalata has specific characteristics that will affect the interest of potential joint venture partners or acquirers.
Relatively large, asset-heavy portfolio acquisitions can be complex.
"About half of the transactions last year were of portfolios in the UK, but unlike Dalata, the deals were not a mix
skift.
