Dalata has signed contracts to sell its Clayton Crown hotel in London to a company controlled by AG Hotels Group for approximately £21m.
The transfer of the business is scheduled to complete by late June 2022.
The 152-bedroom four-star hotel, located in Cricklewood, was no longer deemed a core hotel asset with the company's increasing strategic focus on central locations. The proceeds will be reinvested in the business.
This transaction is a transfer of a going concern, however the Clayton branding is not included as part of the arrangement. On completion of the contracts, the hotel will no longer have any contractual relationship with the company.
Dermot Crowley, chief executive of Dalata, said: "I would like to take this opportunity to thank the team at Clayton Crown hotel for the significant contribution they have made since the hotel was acquired as part of the Moran Bewley acquisition in 2015.
"This transaction represents excellent value and will assist us in our continued focus on securing central opportunities in attractive cities of the UK and continental Europe. London continues to be a priority for Dalata, and we look forward to opening our new hotel in Shoreditch in the second half of 2023.
"Our immediate focus now will be to communicate with our employees and assist them with the transition. We will be retaining the hotel management within the company; all other employees will have the opportunity to apply for vacant positions within Dalata or they can choose to remain in their current roles in the hotel."
Dalata was founded in August 2007 and listed as a plc in March 2014. It is Ireland's largest hotel operator, with a growing presence in the UK and continental Europe, and operates hotel brands including Clayton and Maldron. The group's portfolio comprises 48 predominately four-star hotels with 10,511 rooms and a pipeline of over 1,500 rooms, of which 28 hotels are, 17 leased and three are management contracts. For the year ended 31 December 2021, Dalata reported revenue of €192m (£164.5m) and a loss after tax of €6.3m (£5.4m).