Dalata Hotel Group hopes to raise €150m with floatation
Owner of Maldron chain to list on Dublin and London Stock Exchanges
A bedroom at the Maldron Hotel, Portlaoise. The chain’s owner Dalata Hotel Group said it hopes to raise at least €150 million by floating on the Dublin and London Stock Exchanges.
Ireland’s largest hotel operator Dalata Hotel Group is to list on the Irish and London Stock Exchange.
The group hopes to raise between €150 million and €200 million by floating on the Enterprise Securities Market of the Irish Stock Exchange and the Alternative Investments Market of the London Stock Exchange.
The proceeds will be used to pay down some of the company’s €4.1 million debt, as well as funding the acquisition of between 16 and 25 hotels around Ireland.
The Dalata Hotel Group currently operates 39 hotels in Ireland and one in Cardiff, with a total of more than 6,100 rooms. It owns the Maldron chain of hotels, and operates a number of others under lease and management agreements.
The group has taken over the operation of eight new hotels since the start of this year.
Dalata owns the well-established and recognised Maldron brand which has a strong presence in the 3-4 star market segment, which the Board believes is the most attractive segment in the Irish hotel industry offering significant profit growth potential.
The company said hotel trading conditions in Ireland had improved recently with visitor numbers and occupancy rates on the rise, making the sector is an attractive investment opportunity. More hotels are expected to come on the market at a good price this year and next, the company added.
“International demand is growing steadily across the Irish hotel sector and especially in Dublin - aided by the development of projects like the International Convention Centre and a continuing strong flow of foreign direct investment,” said Dalata chief executive Pat McCann.
“With that growth available we have the presence and the know how to derive value and a sustained earnings flow from assets that have been starved of attention and development over recent years.”