Clayton & Maldron Owner Dalata Hotel Group Considering Sale as Part of Strategic Review

Dalata Hotel Group has effectively put itself up for sale by commencing a strategic review of its business.

Dalata is the largest hotel owner in Ireland, through its two well-known brands Clayton and Maldron. In recent years it has grown outside of its home market and expanded throughout the UK and into continental Europe with openings in Germany and the Netherlands.

Dalata said the strategic review is a way of exploring options to optimise capital opportunities for the group and to enhance value for shareholders.

It said the review includes – but is not limited to – a potential sale of the group. The group has also stressed it is not in discussions with, or in receipt of an approach from, any potential offeror at the time of this announcement.

Dalata has appointed Rothschild & Co as financial adviser in connection with the Strategic Review.

Dalata said the strategic review will consider all options including returning further capital shareholders, a total sale of the company, or another form of merger.

Explaining the need for the review, Dalata said: “The Board believes that Dalata offers a highly attractive investment proposition: a leading hotel platform and a dynamic experienced management team, a modern, well-invested portfolio of hotel properties in central locations, two well-established growing brands and strong cashflow generation, with a clear strategy as outlined in its 2030 Vision to grow the portfolio.”

“However, the Board also recognises that the Group faces certain structural challenges, including its relatively small scale in a public market context, its relatively concentrated shareholder register, a constrained capital base in the context of its growth ambition and a share price that continues to trade at levels which the Board does not believe reflects the asset base, fundamentals, performance, cash generation, and exciting growth prospects of Dalata.”

John Hennessy, Dalata Chairman said: “The Board is excited about the 2030 Vision that was outlined by our senior management team at our Capital Markets Day in October 2024. However, we are unanimous in the view that the key to achieving that vision is the availability of capital; and that the share price does not reflect the underlying value of the company. We believe that now is the right time to undertake a rigorous and formal strategic review, which will consider options to increase access to capital and also enhance shareholder value.”

Dermot Crowley, Dalata Chief Executive, said: “Our 2030 Vision strategy sets an exciting goal to have 21,000 rooms either operational or under construction by 2030. We have an excellent management platform in place to deliver this strategy but access to capital is essential to achieve our vision. A thorough strategic review will enable us to assess available options to increase our access to capital and enhance shareholder value. During the process we will remain focused on the underlying business – continuing to take care of our people and continuing to meet the expectations of our customers. We have exciting initiatives in place to enhance further our revenues and deliver further productivity – our teams will remain focused on delivering on the objectives that we have set ourselves for 2025.”

Strong Results

Dalata has also reported its annual results, showing continued group growth in 2024. Group revenue jumped by over 7% to €652.2m, with adjusted earnings up by over 5% at €234.5m. RevPAR (revenue per available room), a key growth metric for hotels, was up 1% at nearly €116m.

Commenting on the back of the results, Dalata CEO Dermot Crowley said: “Looking ahead, I am confident about Dalata’s prospects. We are a modern, international, outward looking, and innovative hotel company. We have a clear strategy, underpinned by our 2030 Vision, and a team of exceptional people with an unwavering focus on delivering on our ambitious growth targets.”