The board of Dalata Hotel Group, Ireland’s largest hotel group, has backed a sale of the company to Scandanavia’s Pandox AB and Eiendomsspar AS for €1.4 billion through a combination of cash and debt. The acquisition would be made through a vehicle called Pandox Ireland Tuck Limited.
Dalata operates 56 hotels, a mix of owned and leased properties, mainly in Ireland and the UK through the Maldron and Clayton brands and partner hotels. Sweden-based Pandox would own the majority (91.5%) with Norway-based Eiendomsspar owning the rest. Scandic Hotels Group AB, Pandox’s existing operating partner, would manage the hotels.
Eiendomsspar, a real estate developer, is the largest shareholder in Pandox AB, owning approximately 36% of shares. Eiendomsspar owns 11 hotels in Norway, with another two hotels under construction.
Pandox owns and manages a portfolio of 163 properties, primarily located in Northern Europe, totaling approximately 36,000 rooms.
Last month, Dalata rejected an unsolicited bid by the Pandox/Eiendomsspar combo of €6.05 per share, which valued the company at just shy of €1.3 billion. Under the deal, Dalata shareholders will get €6.45 in cash per share, which represents a premium of about 12% to the closing price on June 2, the day after the unsolicited bid.
It’s been a down year for hotel transactions and large-scale M&A as the cost of capital remains elevated with stubbornly higher interest rates and trade policy volatility.
For full-year 2024, Dalata generated revenue of €652 million, an increase of 7.3% over the previous year.
“Dalata’s portfolio consists of well-established and highly profitable four-star hotels in strong locations, which will further expand Pandox’s footprint in several large, dynamic and growing hotel markets in Northern Europe,” said Liia Nõu, CEO of Pandox. “The properties are of high technical standard and will contribute positively to the overall quality of Pandox’s hotel property portfolio. Through this cash-flow and value-accretive transaction we will also deepen our already strong partnership with Scandic Hotels Group.”
“As the largest shareholder in Pandox and a joint offeror, we are enthusiastic about the acquisition of Dalata, which we view as one of the finest hotel companies in Northern Europe. We believe the combined forces of Pandox, Dalata and Scandic Hotels will provide strength and be a source of significant value creation,” said Christian Ringnes, chairman of Eiendomsspar.
Commenting on the deal, Dermot Crowley, CEO of Dalata, said the deal would allow Dalata to expand faster through better access to capital. “This represents an exciting new chapter for Dalata in which we will become part of a larger hotel platform
and will further accelerate our growth,” he said. “Together, we will unlock new opportunities for the Clayton and Maldron brands as we continue to expand as a leading international hotel company.”
Just a little more than a month after the initial bid, Dalata’s board found the new offer acceptable for shareholders. “Following a thorough and rigorous strategic review, incorporating a formal sales process, the board determined unanimously that this transaction delivers compelling value and represents the best available strategic option for our shareholders,” said John Hennessy, chair of Dalata. “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 acquisition is expected to be completed in the fourth quarter of 2025.
