Dalata Hotel Group, the country's biggest hotel group, has today announced a deal which will see its first hotel open in Spain.
Dalata, which operates the Clayton and Maldron hotel chains, said it has agreed with Grupo Insur to lease a new 4-star Clayton hotel to be developed in Madrid.
The hotel will be situated in Valdebebas, which is adjacent to the Adolfo Suárez Madrid-Barajas Airport, the fifth busiest airport in Europe.
Grupo Insur is a Spanish real estate company in operation for over 75 years and it is listed on the Madrid stock exchange.
Due to open in the first quarter of 2029, the full-service Clayton Hotel, will include 243 bedrooms, a restaurant, bar, meeting and events, outdoor pool and a gym.
When the hotel is built, Dalata will start operations of the hotel through a 15-year lease term, with two five-year tenant extension options.
It said the rent, with a guaranteed minimum, includes a ramp up period for the first three years and thereafter will be determined by the revenue performance of the hotel.
Dalata said the signing of the agreement for lease in a major European City, which has become one of the world's top tourist destinations, further demonstrates its ability to increase its footprint and is consistent with a strategy of targeting locations in Gateway cities in Europe.
Dalata Hotel Group held its AGM in Dublin today and shareholders heard that the company delivered a strong operating performance with revenue growing to €652m.
John Hennessy, Chair of Dalata, told the AGM that the company has made great progress in expanding its presence in the UK with the opening of four new Maldron hotels in London, Manchester, Liverpool and Brighton.
It has also secured two agreements for lease, in London (Clayton Hotel Old Broad Street) and Edinburgh (Clayton Hotel Morrison Street), both expected to open in 2028.
He said the acquisition of Radisson Blu Hotel Dublin Airport remains subject to a detailed review by the CCPC and the company is waiting for a final decision upon the conclusion of their review.
"Our pipeline of over 1,800 rooms also includes Maldron Hotel Croke Park, Dublin and Clayton Hotel St Andrew Square, Edinburgh which we expect to open next year and the group is in advanced detailed discussions on further opportunities in Berlin and London," he added.
Mr Hennessy said the company had expected like for like group RevPAR and Dublin RevPAR to be 2.5% and 5% respectively ahead of last year for the first quarter of 2025.
But he said that trading in March (the most significant month of the first quarter) turned out to be lower than projected due to a slower pick up than anticipated in transient leisure business.
"RevPAR on a like for like basis for the four-month period January to April will be in line with the equivalent period in 2024 for the group and ahead by circa 3% for Dublin," he added.
The Dalata chairman also told the AGM that the company's strategic review - announced on March 6 - is ongoing and shareholders will be updated in due course.
Shares in the company ended lower in Dublin trade today.
