Deka Immobilien has struck a €65m (£57m) deal to buy the Clayton Hotel Charlemont in Dublin from Dalata Hotel Group and lease it back to the operator.
Dalata will pay for the completion of the four-star hotel’s development, the final part of which will see 38 Charlemont Street converted into three new bedrooms and a café. The company said the sale-and-leaseback deal was expected to close by the end of the month.
The 35-year lease will have an initial annual rent of €3.05m with five-yearly rent reviews. The €65m price tag includes a purchase price of €61.95m and one year rent-free for Dalata. CBRE and Savills advised Deka.
Dalata bought the site in 2016 and opened the hotel in late 2018. The property contributed €4.3m to the company’s EBITDA last year.
Dalata also leases the Clayton Hotel Burlington Road from Deka.
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