Latest news with #Pandox
RTÉ News
4 days ago
- Business
- RTÉ News
Dalata Hotel Group agrees to €1.4 billion takeover deal
Scandinavian property companies Pandox and Eiendomsspar have agreed to buy Ireland's largest hotel group Dalata Hotel Group for €1.4 billion, the companies said today. Dalata shareholders will get €6.45 in cash per share, representing a premium of about 12% to the closing price on June 2 - the day before the Scandinavian hotel investors first disclosed their interest in the Irish company. Dalata had rejected an initial proposal in early June from Pandox and Eiendomsspar, valuing it at €1.3 billion, saying that the price undervalued the group. The latest offer, which has the backing of the board, concludes the Dublin-based company's strategic review that was launched in March to drive up shareholder returns. The cash offer of €6.45 per share also represents a 35.5% premium to the Dalata share price before the launch of its strategic review and formal sale process in March and a 49.7% premium to the 12 month volume-weighted average Dalata share price. Sweden-based Pandox will own 91.5% of the entity taking over Dalata, while Norway-based Eiendomsspar will own 8.5%, the companies said in a statement. Pandox's long-term operating partner, Scandic Hotels Group AB, will become an operating partner for the existing Dalata portfolio, they added. Dalata operates 55 hotels under the Maldron Hotel and Clayton Hotel brands, mostly in Ireland and the UK, and aims to open new hotels in Europe including in Berlin and Madrid. It launched a strategic review in March to explore options for enhancing shareholder value, including a potential sale. The Dalata Board said it believes the acquisition is in the best interests of Dalata shareholders and represents the most effective route to enhance value for shareholders, relative to Dalata's other strategic options which have been considered as part of its strategic review. Dalata said it will retain its staff, management team and Dublin headquarters as it continues to expand as an international hotel group. Dermot Crowley, CEO of Dalata, said the deal represents an exciting new chapter for Dalata in which it will become part of a larger hotel platform and will further accelerate its growth. He said the deal was a "very good fit" as it gives Pandox a large portfolio in Britain and Ireland, and Dalata better access to capital and a larger platform to accelerate growth. Dalata will continue to target new properties in the United Kingdom and Western and Southern Europe, he added. "Our focus remains firmly on our people and our customers. I'm proud to continue to lead our team in close partnership with our new owners. Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company," the CEO added. John Hennessy, Chair of Dalata, said that after a thorough and rigourous strategic review, incorporating a formal sales process, the board has determined unanimously that this transaction delivers compelling value and represents the best available strategic option for shareholders. "We believe that it is the right path forward for all stakeholders, and that it positions the business strongly for its next phase of growth under new ownership," the said. "The value achieved reflects the hard work and professionalism of the exceptional people working in Dalata now and in the past, and we extend our sincere gratitude to everyone in the Dalata Group and to all who have contributed to the journey so far. We look forward to the company's continued success into the future," he added. Pandox CEO Liia Nõu said the portfolio consisted of "well-established and highly profitable four-star hotels in strong locations" that would increase its footprint in key markets. Sweden-based Pandox specialises in the ownership, development and leasing of large hotel assets in major cities across Sweden and northern Europe. It has been expanding its portfolio through acquisitions and leases in key European cities including Stockholm, Berlin and Brussels and its portfolio consists of 163 hotel properties with about 36,000 rooms across 11 countries in Northern Europe. Eiendomsspar is one of the largest real estate owners in Norway and it owns 11 hotels in Norway, with another two hotels under construction. Eiendomsspar controls about 36% of the voting shares of Pandox.
BreakingNews.ie
4 days ago
- Business
- BreakingNews.ie
Ireland's largest hotel group Dalata agrees to €1.4bn Scandinavian takeover
Scandinavian property companies Pandox and Eiendomsspar AS have agreed to buy Ireland's largest hotel group Dalata for €1.4 billion, the companies said on Tuesday. Dalata, which operates 56 hotels under the four-star Maldron and Clayton brands, mainly in Ireland and Britain, had rejected an initial bid from Pandox and Eiendomsspar in early June that had valued the hotel operator at €1.3 billion. Advertisement Sweden-based Pandox, which specialises in the ownership, development and leasing of large hotels across Sweden and northern Europe, will own 91.5 per cent of the entity taking over Dalata, while Norway-based Eiendomsspar will own 8.5 per cent, the companies said in a statement. Pandox's long-term operating partner, Scandic Hotels Group AB, will become an operating partner for the existing Dalata portfolio, the statement said. Dalata chief executive Dermot Crowley said the deal was a "very good fit" as it gives Pandox a large portfolio in Britain and Ireland, and Dalata better access to capital and a larger platform to accelerate growth. Ireland Profits and revenues surge at Dublin's Gresham Hot... Read More Dalata will continue to target new properties in the United Kingdom and western and southern Europe, he added. Advertisement Pandox chief executive Liia Nõu said the portfolio consisted of 'well-established and highly profitable four-star hotels in strong locations' that would increase its footprint in key markets. Under the deal, Dalata shareholders will get €6.45 in cash per share, representing a premium of about 12 per cent to the closing price on June 2nd – the day before the Scandinavian hotel investors first disclosed their interest in the Irish company. The latest offer, which has the backing of the board, concludes the Dublin-based company's strategic review that was launched in March to drive up shareholder returns.
BBC News
4 days ago
- Business
- BBC News
Ireland's Clayton and Maldron hotel group Dalata sold to Scandinavian consortium
A Scandinavian consortium is buying Ireland's largest hotel chain for €1.4bn (£1.2bn).The Dalata group operates 55 hotels under the Clayton and Maldron brands, including three in Northern this year it put itself up for sale saying fresh investment was needed to grow the buyers are Pandox, a Swedish hotel operator, and Eiendomsspar, a Norwegian property company. Pandox's existing hotels include the Belfast Hilton which it bought for about £40m in its foundation in 1995, it has grown into one of the largest hotel owners in northern Europe with 163 properties across 11 said that when the deal is completed it will retain its staff, management team and Dublin Crowley, chief executive of Dalata, said: "Our focus remains firmly on our people and our customers."I'm proud to continue to lead our team in close partnership with our new owners. Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company."
Business Post
4 days ago
- Business
- Business Post
In profile: Pandox and Eindomsspar, the Scandinavian firms acquiring Dalata in €1.4bn deal
Business Post subscribers can read: • The strategic motivations behind Pandox's growing interest in the Irish and UK hotel markets — and its €3.96bn portfolio power • How Norwegian billionaire Christian Ringnes built Eiendomsspar into a major European property force — and why Dalata is now in his sights • What happens next for Ireland's only publicly listed hotel group?
Hospitality Net
4 days ago
- Business
- Hospitality Net
Scandic has entered into a framework agreement with Pandox AB and Eiendomsspar AS with the intention to acquire the hotel operations of Dalata Hotel Group Plc
Scandic Hotels Group AB (publ) ('Scandic') has entered into a framework agreement with a consortium consisting of Pandox AB and Eiendomsspar AS (the 'Consortium') with the intention to acquire the hotel operations of Dalata Hotel Group Plc ('Dalata') from the Consortium (the 'Transaction'). Proceeding with the Transaction is conditional upon completion of the Consortium's takeover of Dalata, which was announced today, a separation of Dalata's real estate and operating businesses and necessary regulatory approvals. Upon completion of the Transaction, Scandic will add 56 new hotels to its portfolio with around 12,000 additional rooms and a further pipeline of approximately 1,900, mainly across Ireland and the UK. For the financial year ended 31 December 2024, Dalata reported revenue of EUR 652.2 million; operating profit of EUR 158.5 million; and basic earnings per share of EUR 35.5 cent. The Transaction The key terms of the Transaction are as follows: In connection with the Consortium's cash takeover offer for the entire share capital of Dalata (the 'Dalata Acquisition'), Scandic has entered into a framework agreement with the Consortium with the intention to acquire the hotel operations of Dalata, subject to and conditional upon completion of the Consortium's public takeover offer, the separation of Dalata's real estate and operating business and necessary regulatory approvals. The Dalata Acquisition has been recommended unanimously by the Board of Dalata. Dalata owns and operates hotels primarily in Ireland, where it holds a leading market position, and in the UK. Under the terms of the Transaction, Scandic would take over the operations of 56 hotels (the 'Operating Business'). Of those hotels, 53 would be acquired on a leasehold basis and three would be managed. Scandic would be subject to new lease agreements with the Consortium for 31 of the hotels, with the remainder continuing to operate under existing third-party agreements. The Consortium would maintain ownership of Dalata's freehold and long leasehold property portfolio. Subject to completion of the Dalata Acquisition, the Transaction is expected to take place towards the end of 2026. Under the terms of the Transaction, Scandic would manage Dalata's hotel portfolio pursuant to the terms of a management agreement in the interim period between completion of the Dalata Acquisition and completion of the Transaction (the 'Interim Period'). The management fee would be paid to Scandic quarterly and calculated on the revenue of the Operating Business during the Interim Period. In proceeding with the Transaction, Scandic would pay an anticipated price of EUR 500 million (on a cash and debt-free basis and subject to normal completion adjustments for cash, net debt and net working capital) for the Operating Business, subject to adjustments as agreed upon in the framework agreement reflecting the outcome of the separation of the Operating Business. The consideration payable under the Transaction will be fully financed from available cash and debt facilities, committed by DNB and Nordea. Scandic's current financial targets and dividend policy remain unchanged. If the Transaction is completed, net debt to adjusted EBITDA is expected to temporarily exceed Scandic's financial target of 1.0x but not exceed 2.0x on a full-year basis. Scandic's previously announced intention to launch a new share buyback program of SEK 500 million will now not proceed. However, Scandic would like to emphasize that the Board continues to view share buybacks as a useful tool for optimizing capital allocation. Jens Mathiesen, Scandic President & CEO, comments: 'Scandic has a strong platform, making us well-positioned to deliver on our 2030 strategy. At the same time, we are always open to new business opportunities that can create more value for our stakeholders. Dalata is a high-performing operator with strong brands and leading or established positions in attractive markets. The company primarily operates in the mid-market segment and shares a similar business model with Scandic. Overall, Dalata is a good fit for us. We see this as an opportunity to add a growth platform in new and attractive markets at an attractive valuation. Scandic's strong financial position enables us to pursue this opportunity with balanced leverage. At the same time, we will continue to deliver on our existing strategy that we presented on the capital markets day.' Background and rationale for the Transaction The Transaction represents a value creating opportunity to add a growth platform in new and attractive markets. Dalata has a proven track record and is a strong fit for Scandic Dalata is the market leader in Ireland and has an established presence in the UK, operating primarily in the mid-market segment under its well-known brands, Clayton and Maldron. In combination with a large part of its portfolio comprising of lease agreements, Dalata shares similar characteristics with Scandic, making it a strong complementary is well-managed with a strong track record, having delivered average revenue growth of 9 percent between 2019 and 2024, along with good profitability. In addition, Dalata has consistently reported high average room rates (ARR), occupancy, and revenue per available room (RevPAR) levels, which are expected to enhance Scandic's performance. The hotel portfolio is well-invested, implying limited future capex needs, aligned with Scandic's maintenance capex level. Dalata is the market leader in Ireland and has an established presence in the UK, operating primarily in the mid-market segment under its well-known brands, Clayton and Maldron. In combination with a large part of its portfolio comprising of lease agreements, Dalata shares similar characteristics with Scandic, making it a strong complementary is well-managed with a strong track record, having delivered average revenue growth of 9 percent between 2019 and 2024, along with good profitability. In addition, Dalata has consistently reported high average room rates (ARR), occupancy, and revenue per available room (RevPAR) levels, which are expected to enhance Scandic's performance. The hotel portfolio is well-invested, implying limited future capex needs, aligned with Scandic's maintenance capex level. Attractive market fundamentals in Ireland and the UK Ireland and the UK, including major cities Dublin and London, offer compelling market characteristics, including high ARR, strong occupancy levels, and good RevPAR performance that exceeds levels in the Nordics. Ireland and the UK, including major cities Dublin and London, offer compelling market characteristics, including high ARR, strong occupancy levels, and good RevPAR performance that exceeds levels in the Nordics. Value creating capital allocation The Transaction is expected to be EPS accretive from completion. The cash purchase price reflects an expected EV/Adjusted EBITDA multiple at a discount to Scandic's current valuation. While net debt to adjusted EBITDA is expected to temporarily exceed the financial target following completion, it is not expected to exceed 2.0x on a full-year basis. About Scandic Hotels Group Scandic is the largest hotel company in the Nordic countries with a network of about 280 hotels and 58,000 hotel rooms in operation and under development at more than 130 destinations. The company is leading the way in integrating sustainability in all areas and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and Scandic is one of the most attractive employers in the region. Scandic is listed on Nasdaq Stockholm.
