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August 14 2017 8:30 AM
Ireland's largest hotel operator, Dalata Hotel Group, has announced its sale and leaseback of Hotel La Tour in Birmingham for £30m (€33.2m) with real estate company Deka Immobilien.
Dalata, whose hotels include the Clayton and Maldron hotels, will now operate the hotel on a fully repairing and insuring lease for a 35 year term at an initial rent of £1.5m per year, subject to five yearly rent reviews and index-linked to the Retail Price Index.
Last month Dalata announced that it had acquired the four star, 174 bedroomed hotel for £31m.
Read more: Ireland’s largest hotel group sells interest in top London hotel
The hotel will be located directly across from the planned high-speed rail station that, once completed in 2026, will link Birmingham to London in 49 minutes.
The last set of financial statements for Hotel La Tour show that it had earnings before interest, taxation, depreciation, and amortization of £1.9 in the year ended 31 March 2017.
Commenting on the announcement, Shane Casserly, head of Strategy & Development at Dalata, said the company was “delighted” to announce the sale and leaseback,
"The transaction...is consistent with our stated strategy of growing in the UK primarily through Operating Leases," Mr Casserly said.
In June this year Dalata agreed the sale and leaseback of its Clayton Hotel in Cardiff Wales.
Hotel La Tour will be rebranded as a Clayton Hotel later this year.