Dalata has announced its intention to acquire nine hotels in Moran Bewley’s Hotel Group for €455 million. The deal will be subject to clearance from competition authorities, and shareholde
r approval at an egm on January 5th.
Dalata is acquiring nine of the Moran hotels, comprising 2,506 rooms in Ireland and Britain. The transaction does not include the Red Cow Moran Hotel and adjoining Red Cow Inn in south west Dublin, which will remain under the control of Limerick businessman Tom Moran and his wife Sheila Moran.
Dalata plans to re-brand the hotels as Maldron.
Dalata plans to issue 18.3 million new shares at €2.75 to help fund the deal. This transaction will result in it having fully invested the €265 million in proceeds it raised from its stock market IPO earlier this year.
Dalata chief executive Pat McCann said the deal would be “transformational” for the company, which is listed in Dublin and London.
The Moran hotel group is one of the most profitable chains in the country. In the 11 months to the end of December 2013, the company made an operating profit of €19.1 million on revenues of €77.8 million.
The deal will result in Dalata acquiring five hotels in Ireland and four in Britain.
In Ireland, the properties involved are the Silver Springs in Cork, and the Bewley’s hotels in Ballsbridge, Dublin Airport, Leopardstown, and Newlands Cross.