Dalata Hotel Group has accepted a higher offer from Pandox AB and Eiendomsspar AS to acquire the Irish hotel firm, subject to shareholder approval.
In a July 14 news release, Dalata said a strategic review recommended the Scandinavian firms’ updated cash offer of €6.45 ($7.53) per share, which it said represented a “35.5% premium to the Dalata share price preceding the launch of the strategic review and formal sale process, a 49.7% premium to the 12-month volume-weighted average Dalata share price and an acquisition equity value of €1.4 billion ($1.63 billion)."
The official acquisition entity is Pandox Ireland Tuck Ltd. Long-term Pandox partner, Stockholm-based Scandic Hotels Group AB, will operate the entire Dalata portfolio — mostly affiliated with brands Maldron Hotels and Clayton Hotels — alongside Dalata, which will maintain its staff, management team and Dublin headquarters.
In early June, Dalata management had rejected an initial offer from Pandox and Eiendomsspar of €6.05 per share that valued the Irish firm at €1.27 billion.
Dalata announced in March it was investigating strategies to increase value, including a possible sale.
In accepting the new offer, Dalata said Stockholm-based Pandox and Oslo-based Eiendomsspar are “established hotel investors, well-positioned to support Dalata’s long-term growth ambition.”
“Through this cash flow and value-accretive transaction, we will also deepen our already strong partnership with Scandic, which is based on operational and commercial excellence," said Pandox CEO Liia Nõu.
Christian Ringnes, chairman of Eiendomsspar, added: “We are enthusiastic about the acquisition of Dalata, which we view as one of the finest hotel companies in Northern Europe. We believe the combined forces of Pandox, Dalata and Scandic will provide strength and be a source of significant value creation.”
Dalata has a portfolio of 56 operating hotels and 12,219 rooms. It has a pipeline of 1,912 rooms, and it has a target of approximately 21,000 hotel rooms by 2030.
At the end of June, it announced a partnership with owner Deka Immobolien Investment GmbH to open the 274-room Clayton Berlin am Tiergarten, a conversion of a former Novotel hotel. It is the firm’s second hotel in Germany and fourth in mainland Europe, where it has ambitions to expand its footprint.
In its full-year 2024 earnings report, Dalata reported revenue of €652.2 million and adjusted earnings before interest, taxes, depreciation and amortization of €234 million.
Publicly listed Pandox has 163 hotels and approximately 36,000 rooms in its portfolio across 11 European countries with a value of approximately 76 billion Swedish krona ($7.9 billion). Eiendomsspar owns 11 hotels in Norway, with an additional two properties in construction.
Pandox will own 91.5% of Pandox Ireland Tuck, with the remainder owned by Eiendomsspar, if the deal is completed under the updated terms.