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.
