Dalata Hotel Group, Ireland's largest hotel operator, has acquired the entire share capital of Hotel La Tour Birmingham (HLTB) for £31m from Hotel La Tour.
The hotel will be rebranded as a Clayton hotel in the final quarter of this year.
HLTB owns the long leasehold, effective freehold, interest of the 174-bedroom hotel, situated on Park Street in the centre of Birmingham. The consideration is payable from Dalata's existing banking facilities.
The property was built in 2012 and has a restaurant, bar and conference and meeting facilities. EBITDAR (earnings before interest, taxes, depreciation, amortisation and restructuring or rent costs) attributable to the hotel was around £1.9m for the year ended 31 March 2017.
Dermot Crowley, deputy chief executive, business development and finance, said: "Hotel La Tour in Birmingham represents an outstanding opportunity to operate a newly built hotel in the centre of one of the largest cities in the UK. The acquisition is consistent with our stated strategy of rolling out both our Maldron and Clayton hotel brands across the larger UK cities."
Dalata has a portfolio of 37 hotels, 24 of which are owned by Dalata, nine are operated under lease agreements, and four under management agreements. The group announced earlier this year that it plans to focus on UK expansion following strong increases in revenue and profit. It has since agreed the sale and leaseback of the Clayton hotel in Cardiff, and sold Kasterlee UK, the company which holds the leasehold interest in the Croydon Park hotel.
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