Agreement to Lease Newcastle Hotel

RNS Number : 3978P

Dalata Hotel Group PLC

17 November 2016

 

Dalata Hotel Group plc

("Dalata" or the "Company" or the "Group")

 Dalata Signs Agreement for Lease on new Maldron Hotel in Newcastle, England

Dublin, 17 November 2016 | Dalata Hotel Group plc ("Dalata" or "the Company") is pleased to announce that it has signed an agreement to lease a new Maldron Hotel, to be built in Newcastle, with ES Newgate Limited, a subsidiary of McAleer & Rushe.

The new hotel will be a 4 star property, excellently located on Newgate Street in the city centre. The site is a short walk from Central Station and close to St James' Park, home to Newcastle United FC. The hotel will have 226 air-conditioned bedrooms, a bar, restaurant and meeting room facilities. The hotel will be part of a mixed-use development which also incorporates student accommodation and retail space.

On completion of construction, Dalata will commence operations in the hotel through a 35 year Operating Lease which will be subject to five year rent reviews linked to the Retail Price Index. It is expected that the hotel will open in the summer of 2018.

Dalata currently operates nine hotels in the UK including six Clayton hotels with two in London, and one in each of Belfast, Cardiff, Leeds and Manchester. The Group also operates the Croydon Park Hotel, London, a Maldron hotel in Belfast and one in Derry. Newcastle will be Dalata's first Maldron Hotel in England.

Dermot Crowley, Deputy CEO - Business Development and Finance, said: "This development provides us with an exciting opportunity to launch our Maldron brand in the English market, in line with our strategy of rolling out our Clayton and Maldron brands in the large regional UK cities. We are delighted to be working on this project with our development partner, McAleer & Rushe, and look forward to opening in Newcastle in summer 2018."

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Contacts

Dalata Hotel Group plc Dermot Crowley, Deputy CEO Business Development and Finance T: [phone] E: [e-mail]

Investor Relations & Public Relations FTI Consulting Jonathan Neilan/Patrick Berkery T: [phone] / [phone] E: [e-mail]

Sponsor and Broker Davy Anthony Farrell T: [phone] E: [e-mail]

About Dalata

Dalata Hotel Group plc is Ireland's largest hotel operator, with a current portfolio of 40 three and four star hotels with over 7,500 rooms. Dalata successfully operate Ireland's two largest hotel brands, the Clayton and the Maldron Hotels across Ireland and the UK, as well as managing a portfolio of partner hotels. 24 of the hotels are owned by Dalata, 9 hotels are operated under lease agreements and 7 are operated under management agreements.

For the full year 2015 Dalata reported revenue of €225.7 million. Dalata is listed on the Main Market of the Irish Stock Exchange (DHG) and the London Stock Exchange (DAL).

For further information visit: www.dalatahotelgroup.com

http://dalatahotelgroup.com/about-us/management-team/

 

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