Dalata Hotel Group has agreed a new lease deal for a new 4-star Clayton hotel to be developed on the Tower 42 Estate in the City of London.
Due to open in the second half of 2028 subject to planning approval, the full-service Clayton hotel will be developed at 20 Old Broad Street, EC2 in the heart of London City.
The all-electric hotel will have 154 bedrooms, a restaurant, bar and gym.
When the hotel is finished, Dalata will start operations in the hotel through a 25-year operating lease which will be subject to five-year rent reviews linked to the UK consumer price index.
Dalata said the signing of the agreement in a prime London location further shows its ability to increase its footprint in a global business and tourism hub with strong market fundamentals.
Dalata opened four new locations in the UK this year including the Maldron Hotel Shoreditch, which opened in August. This new hotel will bring its operating presence in London to 1,030 rooms across six hotels.
The hotel group's portfolio comprises a mix of owned and leased hotels with 56 primarily four-star hotels operating through its two main brands, Clayton and Maldron Hotels, with 12,150 rooms and a pipeline of over 870 rooms.
Shane Casserly, Deputy CEO of Dalata Hotel Group, said the company was excited to expand its footprint in London, with this transaction illustrating the flexibility of its business model as we deliver further growth through leasing, as well as acquisition and development.
"As part of our Vision 2030, London continues to be a key target city for Dalata, and we believe significant opportunity exists for both our Clayton and Maldron brands," Mr Casserly said.
"Our proven track record of delivery across both London and the UK, demonstrates our ability to identify and deliver in-demand hotels at excellent locations. Our experience, scale and deep industry expertise positions us strongly to deliver on our ambitious growth plans," he added.
Shares in the hotel group ended 2% higher in Dublin trade today.
