Dalata Hotel Group has agreed a deal to buy the leasehold interest of four hotels for an enterprise value of €40m.
The four hotels are the Gibson Hotel Dublin, the Croydon Park Hotel in Croydon, the Clarion Hotel Cork and the Clarion Hotel Limerick. The operating leases have an average term of 18 years outstanding.
As part of the deal, the hotel group will also take over the management of the Clarion Liffey Valley Hotel in Dublin under a short term management contract.
The hotels are currently operated as part of the Choice Hotel Group.
The deal will give the hotel group a further 960 bedrooms in Dublin, Cork and Limerick which are all experiencing strong growth in the recovering Irish economy.
Today's acquisition is subject to approval from the Competition and Consumer Protection Commission and Grant Thornton, which is acting as receiver of the interest in the Gibson Hotel.
Dalata said it plans to invest €14m over the next two years in refurbishing the hotels in Cork, Limerick and Croydon.
The four hotels will also be rebranded to Clayton Hotels, increasing the Clayton portfolio to 18 hotels.