Dalata Hotels accepts revised £1.2b takeover by Pandox and Eiendomsspar

Scandi property giants Pandox and Eiendomsspar have acquired Ireland’s largest hotel operator Dalata Hotel Group, after upping their bid to value the business at €1.4b (£1.2b).

The cash offer of €6.45 per Dalata share has been made through newly incorporated company Pandox Ireland Tuck Limited.

This represents a premium of 35.5% compared to closing price of €4.76 per share on 5 March 2025; and 49.7% premium to the volume-weighted average price of €4.31 per Dalata Share for the twelve-month period ended on 5 March 2025.

The board of Dalata has agreed to the terms of the buy-out, which will appoint Pandox’s long-term partner, Scandic Hotels Group, as operating partner.

Dalata has a portfolio of 55 hotels across Europe, the majority of which are in the UK and Ireland, operating under the midscale Clayton and Maldron brands.

The terms of the acquisition will see Dalata retain staff, management and its Dublin headquarters, as it continues to expand as a leading international hotel group.

Dermot Crowley, chief executive of Dalata, said: “This represents an exciting new chapter for Dalata in which we will become part of a larger hotel platform and will further accelerate our growth. Our focus remains firmly on our people and our customers. I’m proud to continue to lead our team in close partnership with our new owners. Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company.”

John Hennessy, chair of Dalata, said: “Following a thorough and rigorous strategic review, incorporating a formal sales process, the board has determined unanimously that this transaction delivers compelling value and represents the best available strategic option for our shareholders.

“We believe that it is the right path forward for all stakeholders, and that it positions the business strongly for its next phase of growth under new ownership. The value achieved reflects the hard work and professionalism of the exceptional people working in Dalata now and in the past, and we extend our sincere gratitude to everyone in the Dalata Group and to all who have contributed to the journey so far. We look forward to the company’s continued success into the future.”

Liia Nõu, chief executive of Pandox, added: “Dalata’s portfolio consists of well-established and highly profitable four-star hotels in strong locations, which will further expand Pandox’s footprint in several large, dynamic and growing hotel markets in Northern Europe.

“The hotel properties are of high technical standard and will contribute positively to the overall quality of Pandox’s hotel property portfolio. Through this cash-flow and value-accretive transaction we will also deepen our already strong partnership with Scandic Hotels Group, which is based on operational and commercial excellence. We have the utmost respect for Dalata, the business it has created and its staff, and we are excited at the prospect of joining forces for future growth.”

Back in March Dalata announced it was undergoing a strategic review of the business ahead of a potential sale of the business.

Last month it rejected a proposed joint buyout by Pandox and Eiendomsspar.

Their bid comprised a cash offer of €6.05 (£5.11) per ordinary share, representing a 27.1% premium on Dalata’s closing share price on 5 March, when it launched the strategic review.

This was followed by Pandox and Eiendomsspar increasing its joint stake in the Irish hotel group to around 10%.