Dalata Hotel Group continued to expand its footprint. Dalata is expanding its presence in Scotland with the acquisition of a development site at 28 St. Andrew?s Square, Edinburgh.

Dalata has also completed the transaction to enter the hotel market in the Netherlands with the acquisition of the leasehold interest in Hard Rock Hotel Amsterdam American, as announced on 21 September 2023. The development site, which is superbly located fronting on to St. Andrew?s Square, one of the most prestigious areas in Edinburgh and within close proximity to the city?s key corporate and leisure demand drivers, was acquired for a total consideration of £12.5 million, from Aviva Life & Pensions UK Limited.

The consideration was paid from Dalata?s existing cash and banking facilities. The site includes a Category A listed building which is currently vacant and approved for office use, with planning permission granted for an extension to both the rooftop and rear of the property. The Group plans to submit a revised planning application in First Quarter next year, enabling the construction of a new 4-star Clayton Hotel, which is expected to be completed by mid-2026.

The Group?s hotel scheme is designed to work within the new building envelope permitted under the existing planning permission. Subject to a successful revised planning application the hotel will incorporate 153 bedrooms, a bar, restaurant, dry gym and two large meeting rooms with stunning period features on the first floor overlooking St. Andrew?s Square.

The overall investment in the project, including the site purchase, will be circa £48 million, creating circa 60 new employee positions when the hotel is operational. The new hotel, as part of sustainability strategy, will be one of first to be designed to operate with zero on-site carbon emissions. As a conversion scheme, it will also have considerably lower embodied carbon than a new build.

Further to the announcement of 21 September 2023, Dalata has completed the acquisition of a leasehold interest in Hard Rock Hotel Amsterdam American. Pursuant to the transaction, Dalata has acquired the entire issued share capital of American Hotel Exploitatie BV, which holds the operating leasehold, for a total consideration of ?29.5 million from Zien Group. The consideration will also be financed from Dalata?s existing cash and banking facilities.

The 4-star hotel, which is owned by Deka Immobilien, is centrally located in Amsterdam on the corner of Leidsekade Canal and Leidseplein Square, Amsterdam?s central district of culture and entertainment. The hotel consists of 173 bedrooms, ground floor lobby, Café and Bar. Renowned for its iconic Café and Bar Americain, this landmark hotel has undergone a ?14.5 million renovation since 2020.

The hotel is being rebranded to Clayton Hotel Amsterdam American and Dalata will invest approximately ?4.5 million to enhance the property over the coming years. Included within these enhancements is a substantial investment in its sustainability credentials, which will result in a significant reduction in the carbon footprint of the property. The hotel with an expectation of stabilised annual earnings of circa ?5 million, will be Dalata?s first hotel in Amsterdam and second hotel in continental Europe.