Dalata is to acquire the long leasehold interest of the Apex Hotel London Wall for £53.4 million (€62.2m) from Apex Hotels.
Apex owns the long leasehold interest of the hotel which is situated at 7-9 Copthall Avenue in the heart of the city of London. There is 107 years remaining on the lease. The consideration will be payable from Dalata’s existing facilities and the transaction is expected to be completed in early July 2023.
Dalata said the property was an upscale hotel with four-star facilities consisting of 89 bedrooms and suites, a gym, a ground floor lobby and a contemporary restaurant and bar. It is located less than 10 minutes’ walk from Moorgate, Bank and Liverpool Street stations which have extensive national rail, London Underground and bus services, providing connectivity across London.
The property, with expected earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs of £4.5 million in 2024, will require “minimal initial investment” and, on completion of the transaction, Dalata will rebrand it as Clayton Hotel London Wall.
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Dalata, which is the biggest hotel operator in the Republic, said the acquisition further demonstrated its ability to increase its footprint in London. It 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.
Dalata chief executive Dermot Crowley 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 reinvest the funds that we generate from our existing hotels. We look forward to welcoming our new colleagues into the Dalata family.”
Apex Hotels chief executive Angela Vickers said the sale allowed the group to further expand the Apex brand through acquisition.
“We are keen to add to our hotel portfolio, particularly in more rural locations,” she said. “We are sad to say goodbye to such a long-standing 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.”
Dalata corporate development director Shane Casserly added: “To have acquired such an attractive existing London hotel, in the current market, that will allow us to further expand the Clayton brand, is a fantastic achievement for the business. London remains a key development market for us, and we remain focused on securing future opportunities for the portfolio.”
