Dublin-based hotel firm Dalata has signed a deal to acquire the 89-room Apex Hotel London Wall in the City of London from Edinburgh-based Apex Hotels for a sum of 53.4 million pounds sterling ($66.4 million), Dalata announced in a news release.
Dalata said its Scottish peer owns a long leasehold interest in the hotel that has 107 years remaining on it and that it is paying for the hotel from “existing facilities, and the transaction is expected to complete in early July 2023.”
Situated a few blocks south of Finsbury Circus Gardens, the hotel will be renamed the Clayton Hotel London Wall.
Dalata said minimal capital expenditure is required following its 2020 renovation, and through 2024, the hotel is expected to earn earnings before interest, taxes, depreciation, amortization and restructuring/rent costs of approximately 4.5 million pounds sterling ($5.6 million).
The hotel is Dalata's fifth hotel in London. The 192-room Maldron Hotel Finsbury Park is set to open this summer in a London district approximately four miles north of its latest hotel. In the first quarter of next year, the 149-room Maldron Hotel Shoreditch will bring Dalata's total London hotel room count to 877.
Dalata also has hotels opening soon in the English cities of Brighton, Liverpool and Manchester.
Dermot Crowley, Dalata’s CEO, 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. … [This deal] demonstrates our ability to reinvest the funds that we generate from our existing hotels.”
Dalata, the largest hotel operator in Ireland, now has 50 operating hotels and 10,953 rooms, and it has a pipeline of more than 1,400 rooms. Twenty-nine hotels are owned, 18 are leased and three are under hotel management agreements.
That 50th hotel is the 300-room Clayton Hotel Glasgow City, which opened in October.
All are in Ireland and the United Kingdom, apart from one hotel in Düsseldorf.