Dalata buys Apex Hotel London Wall for £53.4m

Irish hotel group Dalata has increased its footprint in London with the acquisition of the 89-bedroom Apex Hotel London Wall for £53.4m, with the transaction expected to be completed in early July 2023.

The hotel will reopen as the group's fifth London property and be renamed the Clayton Hotel London Wall. 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 property is currently a four-star hotel with 89 bedrooms and suites, a gym, ground floor lobby, 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.

At the end of February, the Dalata Hotel Group reported a pre-tax profit of €109.7m (£96.7m) in its full-year 2022 results, up from a pre-tax loss of €11.4m (£10m) in 2021. Dalata opened six new hotels in 2022, including its first in continental Europe, the Clayton Hotel Dusseldorf.

Dermot Crowley, 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."

This latest acquisition will bring the total number of Dalata bedrooms in London to 877 keys, once Maldron Hotel Finsbury Park opens in June 2023 and Maldron Hotel Shoreditch opens in 2024. Further properties in Brighton, Liverpool and Manchester are also under construction.

Angela Vickers, chief executive officer of Apex Hotels, added: "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."