Dalata purchases Apex Hotel London Wall for £53.4m

Dalata, an Irish Hotel Group, has expanded its presence in London by acquiring the Apex Hotel London Wall for £53.4 million. The transaction is expected to be completed in early July 2023.

The hotel will be renamed the Clayton Hotel London Wall and will reopen as the group's fifth London property. Ireland's largest hotel operator operates 11 Clayton hotels and five Maldron hotels in the UK.

Located in the City of London, less than a 10-minute walk from Moorgate and Liverpool Street, The four-star hotel has 89 bedrooms and suites, as well as a gym, restaurant and bar.

Dalata believes the property will require 'minimal initial investment' and the hotel has a forecasted earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs of around £4.5m for 2024.

In its full-year 2022 results, the Dalata Hotel Group recorded a noteworthy pre-tax profit of €109.7 million (£96.7 million), signaling a significant turnaround from the pre-tax loss of €11.4 million (£10 million) reported in 2021. Throughout 2022, Dalata accomplished considerable expansion by opening six new hotels, including a milestone entry into continental Europe with the launch of Clayton Hotel Dusseldorf.

Dermot Crowley, the Chief Executive of Dalata Hotel Group, said: 'London is one of the world's great cities. Securing existing hotels or sites to develop new hotels is very challenging as a result. I am delighted that we have managed to secure two new hotels in the city in the space of just four months. It demonstrates our ability to re-invest the funds that we generate from our existing hotels. We look forward to welcoming our new colleagues into the Dalata family.'

With this recent acquisition, Dalata's total number of bedrooms in London will reach 877 keys. This figure includes the forthcoming openings of Maldron Hotel Finsbury Park in June 2023 and Maldron Hotel Shoreditch in 2024. Additionally, Dalata has ongoing construction projects in Brighton, Liverpool, and Manchester, signifying their ambition to extend their footprint beyond London.

Angela Vickers, the Chief Executive Officer of Apex Hotels, also said, 'The sale of Apex London Wall will allow us to further expand the Apex brand through acquisition. We are keen to add to our hotel portfolio, particularly in more rural locations. We are sad to say goodbye to such a longstanding hotel in the Apex family. London remains an integral destination for our business. Apex City of London Hotel has recently reopened after refurbishment and Apex Temple Court Hotel boasts stylish bedrooms alongside design-led event space, restaurants and bars.'