Dalata Hotel Group expands with Edinburgh development site and Amsterdam American Hotel acquisitions
Dalata Hotel Group, the leading hotel operator in Ireland, and a growing force in the UK and continental Europe, continues to broaden its horizons with significant developments. The group is extending its presence in Scotland with the acquisition of a prime development site at 28 St. Andrew’s Square, Edinburgh. Additionally, Dalata has successfully completed the transaction to enter the Dutch hotel market with the leasehold interest acquisition of Hard Rock Hotel Amsterdam American, as announced on September 21, 2023.
Edinburgh Development Site – St. Andrew’s Square:
The acquired development site enjoys a prime location overlooking St. Andrew’s Square, one of Edinburgh’s most prestigious areas, and is conveniently situated near the city’s key corporate and leisure hubs. Dalata secured the site for a total of £12.5 million from Aviva Life & Pensions UK Limited, using existing cash and banking facilities.
This site features a Category A listed building, currently vacant and approved for office use, with planning permission for an extension to the rooftop and rear of the property. Dalata’s plan involves submitting a revised planning application in Q1 of the next year, facilitating the construction of a new 4-star Clayton Hotel, slated for completion by mid-2026. The hotel will comprise 153 rooms, a bar, restaurant, dry gym, and two spacious meeting rooms with stunning period features on the first floor, offering breathtaking views of St. Andrew’s Square.
The overall investment in this project, encompassing the site purchase, totals around £48 million and will generate approximately 60 new employee positions once the hotel is operational. Notably, this new hotel will align with Dalata’s sustainability strategy and aim to operate with zero on-site carbon emissions, reflecting the company’s commitment to environmental responsibility.
Clayton Hotel Amsterdam American:
Following the September 21, 2023 announcement, Dalata has successfully completed the acquisition of a leasehold interest in the iconic Hard Rock Hotel Amsterdam American. The transaction involved the acquisition of the entire issued share capital of American Hotel Exploitatie BV, holding the operating leasehold, for €29.5 million from Zien Group. Financing for this venture is derived from Dalata’s existing cash and banking facilities.
Located centrally in Amsterdam, at the junction of Leidsekade Canal and Leidseplein Square, this 4-star hotel is nestled in the heart of the city’s cultural and entertainment district. The hotel boasts 173 rooms, a ground floor lobby, and the renowned Café and Bar Americain. Having undergone a €14.5 million renovation since 2020, it is now being rebranded as Clayton Hotel Amsterdam American. Dalata plans to invest approximately €4.5 million to further enhance the property, with a significant focus on sustainability, resulting in a substantial reduction in the hotel’s carbon footprint.
Anticipating stabilized annual earnings of approximately €5 million, this venture marks Dalata’s first hotel in Amsterdam and its second on the continental European front.
Dermot Crowley, CEO of Dalata, expressed his excitement about these significant developments, emphasizing their importance to the group’s growth. He welcomed the new staff members into the Dalata family and highlighted the company’s continued pursuit of opportunities in their target markets.
Shane Casserly, Corporate Development Director at Dalata, highlighted the strategic importance of Edinburgh and Amsterdam in their expansion plans, underlining the group’s commitment to delivering a flagship Clayton hotel with a focus on sustainability.
Dalata Hotel Group’s strategic moves in Edinburgh and Amsterdam underscore its commitment to growth and innovation in the hospitality industry.