Pandox’s revised bid wins Ireland’s Dalata

DUBLIN – A month after rejecting a €1.3b offer from Scandinavian property giants Pandox and Eiendomsspar, Ireland’s largest hotel operator, Dalata Hotel Group, has accepted a revised bid of €1.4 billion or €6.45 per Dalata share.

Pandox’s long-term partner, Scandic Hotels Group, will become the operator of 55 hotels across Europe, the majority of which are in the U.K. and Ireland, operating under the midscale Clayton and Maldron brands.

Reports suggest the new owners plan to take Dalata private and intend to separate the real estate and hotel operating businesses with Scandic ultimately expected to pay an €500 million for the Dalata operating business.

The cash offer of €6.45 per share also represents a 35.5% premium to the Dalata share price before the launch of its strategic review and formal sale process in March and a 49.7% premium to the 12-month volume-weighted average Dalata share price.

I’m proud to continue to lead our team in close partnership with our new owners. Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company.

Dermot Crowley

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Last month, a report by Green Street News in London said a joint venture between London + Regional and Davidson Kempner was potentially gaining an upper hand and possibly nearing preferred bidder status for Dalata.

Established in 2007, Dalata will maintain its Dublin headquarters, as well as its staff and management.

“This represents an exciting new chapter for Dalata in which we will become part of a larger hotel platform and will further accelerate our growth. Our focus remains firmly on our people and our customers,” stated Dalata CEO Dermot Crowley. “I’m proud to continue to lead our team in close partnership with our new owners. Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company.”

Crowley added that Dalata will continue to target new properties in the U.K. as well as Western and Southern Europe.

Pandox owns, develops and leases properties to hotel operators under long-term leases and its portfolio includes 163 hotels (36,000 rooms) across 11 countries in Northern Europe. Eiendomsspar is one of the largest real estate owners in Norway and also a major shareholder in Pandox with control of around 36% of its shares.