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Dalata to open Maldron hotel in Glasgow

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Dalata to open Maldron hotel in Glasgow

The Dalata Hotel Group plans to open a 250-bedroom Maldron hotel in Glasgow in the second half of 2020.

The news follows the recent announcement that the Irish hotel group also plans to open its first Clayton hotel in Scotland in 2020, with Glasgow being one of 20 cities the group is targeting as part of its UK expansion plans.

Subject to planning permission from Glasgow City Council, the hotel is being developed on Renfrew Street by McAleer & Rushe, which owns the freehold. Dalata will operate the hotel under a 35-year lease, subject to five-year rent reviews linked to the Retail Price Index.

Dermot Crowley, deputy chief executive – business development and finance, said: “We have a very strong relationship with McAleer & Rushe who are currently building our new hotels in Belfast, Newcastle and Charlemont, Dublin. Today’s announcement brings the number of UK hotels in our development pipeline to five with a total of circa 1,350 rooms.”

The group added that trading in the final four months of the year has been as expected and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending 31 December 2017 will be “in line with market expectations”.

As well as its hotels in Ireland, Dalata operates seven hotels in the UK in London (two), Cardiff, Leeds, Birmingham, Belfast and Manchester Airport.

Revpar growth in the group’s London hotels has been slower in the second half of the year, leading to lower growth in its overall UK and Northern Ireland portfolio. However, London’s year to date growth at the end of November was still the strongest across the company at 10.4%.

Going into the new year, the group has a development pipeline of more than 1,840 rooms across the UK and Ireland, with the 237-bedroom Maldron Hotel Belfast City scheduled to open mid-March 2018, the opening of Maldron Hotel Newcastle deferred to February 2019, and a formal planning application submitted for Clayton Hotel Manchester.

Dalata to open first Clayton hotel in Scotland >>

Maldron hotel Newcastle sold for £32.7m >>

Dalata Hotels plans to focus on UK expansion >>

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