Dalata Hotel Group plc, the largest hotel operator in Ireland with a growing presence in the UK, has signed a lease with Art-Invest Real Estate for the Hotel Nikko Düsseldorf. Working with the hotel team on site, Dalata has today commenced the operational takeover. The hotel is expected to reopen on 15 February 2022. The signing of this lease marks Dalata's first step into the continental European market and underpins the group's ambitions to establish itself in economically attractive major European cities.
The 4-star hotel in the heart of Düsseldorf is located in close proximity to the city's shopping mile, main business district and main railway station. In addition to 393 rooms, the Hotel Nikko Düsseldorf has a bar, two restaurants, a spa and gym area, a swimming pool and a large number of conference rooms. Extensive investments have been made in the hotel in recent years.
Düsseldorf is one of the seven largest cities in Germany and is an extremely popular destination for foreign and domestic visitors, whether for business or tourism. In 2019, the city recorded over three million visitors and more than five million overnight stays.
According to the lease agreement, Art-Invest receives both a guaranteed fixed rent and a turnover-based variable rent. The lease term is 20 years. There are two options for Dalata to extend the lease for five years each.
Dalata Hotel Group was advised by CBRE.
Dermot Crowley, CEO of Dalata Hotel Group, said: "This announcement represents our first move into the continental European market and represents an excellent opportunity for us as we build our presence in selected European cities. Our focus will continue to be on growth in the UK. We are also on the lookout for opportunities in Europe that complement our portfolio in the UK and Ireland.
I am particularly pleased that our first hotel in Germany is in such a central location in Düsseldorf. Hotel Nikko Düsseldorf will be an excellent addition to Dalata's portfolio. Our integration team, together with the hotel team on site, will ensure the smooth transition of the hotel into our portfolio.
This is our first cooperation with Art-Invest RE. We are delighted to be working successfully with one of Europe's leading hotel investors. Together we will continue to invest in the hotel to secure its positioning as one of the top addresses in the city. We thank CBRE Hotels Germany and Ireland for guiding us as we enter a market that is new to us and look forward to continuing to work together as we explore new market opportunities in Europe."
Dr Peter Ebertz, Head of Hotels at Art-Invest RE, added: "The long-term partnership agreed with Dalata is a great incentive for us. It will enable us to further strengthen and even better position the Hotel Nikko as a true Düsseldorf landmark in terms of quality. Dalata has already proven to be an excellent partner and we look forward to investing in the hotel together in the future."
Sabine Lüftenegger, Director at CBRE Hotels Germany: "We are delighted to have accompanied Dalata in the opening of their first hotel in continental Europe. As one of the most well-known hotels in the heart of Düsseldorf, Hotel Nikko offers great potential for Dalata."
About Dalata
Dalata Hotel Group plc was established in August 2007 and floated as a plc in March 2014. The company's strategy includes acquiring hotels for ownership and entering into hotel leases. In addition, Dalata has a number of operating agreements. The group's portfolio currently comprises 29 owned hotels, 13 leased hotels and three operator agreements with a total of 9,495 rooms. In addition, the company is currently developing 10 new hotel projects and plans to expand three hotels already in its portfolio. This is expected to add over 2,300 rooms. Upon completion of the projects, Dalata will have a total of more than 11,800 rooms. In H1 2021, Dalata generated revenues of €39.6 million and an after-tax loss of €30.4 million. Dalata is listed on the Main Market of Euronext Dublin (DHG) and on the London Stock Exchange (DAL).
For further information, please visit www.dalatahotelgroup.com
