Dalata Hotel Group, Ireland's largest hotel operator, has agreed the sale and leaseback of the Clayton hotel in Cardiff, eight months after buying the 216-bedroom property.
The new-build hotel has been acquired by property investor M&G Real Estate for £22.1m and will be leased to Dalata for 35 years, on an agreed annual rent of £1.15m. Dalata, which was already the operator of the hotel, bought the property in October 2016 from a private vendor for £24m.
It will retain £2.1m worth of fixtures and fittings within the hotel and benefit from the rent of the ground-floor restaurant, which is being sub-leased to Viva Brazil Cardiff until 2032.
Located close to the Principality (formerly Millennium) Stadium, the hotel generated EBITDA of £2.3m in 2016.
Dermot Crowley, deputy chief executive, business development and finance, said: "The sale and leaseback of Clayton Cardiff is consistent with our stated strategy of growing our UK portfolio primarily through operating leases.
"The hotel continues to perform strongly and this reaffirms our commitment to developing our hotel business within the UK."
Matthew Stone, head of long income, M&G Real Estate, said: "Dalata will benefit from a long term sustainable occupancy cost and M&G's investors will benefit from a long term predicable and stable cashflow."
Dalata Hotel Group operates a portfolio of 36 owned, leased and managed hotels, primarily operating under the Clayton and Maldron brands.
Videos from The Caterer archives