Dalata continues its spending spree, buying the Clarion

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Dalata Hotel Group has agreed a deal to buy the Clarion Hotel Cork for €35.1m from joint selling agents Savills and JLL.

The hotel will continue to be run by Merzolt Limited, operating as part of the Choice Hotel Group under the current terms of its 35 year lease agreement.

The 191 room four star hotel is situated on the waterfront in the City Quarter development on Lapps Quay in Cork's main business district - this deal includes annual rent of €2.402m which is subject to upward only rent increases at five year intervals.

Dalata indicated last week that it has bid for seven separate sites in the greater Dublin area, and that it has €160m in fresh equity capital to invest in buying existing, or building new, hotels in Ireland.

Dalata CEO, Pat McCann commented on the deal: "The Clarion is a superb quality hotel finished to a very high specification and one of the finest, if not the finest hotel in Cork City.

"The asset generates a high quality and secure rental income stream, underpinned by a highly profitable hotel operation."

Commenting on the sale, Tom Barrett, Head of Hotels & Leisure, Savills stated: “With high quality conference and leisure facilities and a prime Cork CBD location, the investment sale of the Clarion Hotel Cork attracted a strong level of both domestic and international buyer interest, resulting in highly competitive bidding and in the end a sale price well above our excess €30m guide price."

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