Londonderry hotel bought by Dublin’s Dalata
The four-star Tower Hotel in Londonderry has been acquired by a Dublin-based business for £4.4m.
The Dalata Hotel Group, which already owns the Maldron Hotel Belfast at the international airport, is expected to take possession of the hotel in October, after which it will be rebranded under the Maldron banner.
The Tower Hotel, which is located inside the city’s historic walls, has 93 bedrooms as well as a bar and grill, a restaurant and five conference rooms.
This purchase is the latest in a series of acquisitions by the Dalata Group, which went from a pre-tax loss of €1.7m in 2013 to a pre-tax profit of €943,000, reflecting a general recovery in Ireland’s hotel sector.
Since undertaking a successful IPO in March last year, Dalata has completed the acquisition of the Maldron Hotel Parnell Square and the Pearse Hotel, both in Dublin city centre. It has also agreed to acquire a 25 per cent interest in the Ballsbridge and Clyde Court Hotels in Dublin 4.
Speaking following the decision to acquire the Tower Hotel, chief executive, Pat McCann said:
“The business enjoyed a positive first half of 2014 with a strong operational performance availing of the opportunities presented by improving market conditions.
“There is continued strong growth in Dublin and encouraging signs of recovery in regional Ireland. Maldron Hotel Cardiff continues to grow its market share and the business has also benefited from the addition of the Maldron Hotel Dublin Airport and the Maldron Hotel Tallaght.”
News of the acquisition comes at the same time as some encouraging official statistics which show that business is also brisk for hotels north of the border.
Figures released earlier this month by the Northern Ireland Statistics and Research Agency (NISRA), show that for July this year, average bed-space occupancy was 54 per cent, a three per cent increase on the same period in 2013. Bed-space occupancy refers to the proportion of all bed-spaces available at any given time that are occupied by paying guests. There was also an eight per cent increase in the number of bed-spaces sold in July.
