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Image Credit Dalata Hotels
Scandic Hotels Group has entered into a framework agreement to acquire the hotel operations of Dalata Hotel Group, contingent on a takeover by a consortium of Pandox AB and Eiendomsspar AS.
Scandic Hotels Group has announced a framework agreement to acquire the hotel operations of Dalata Hotel Group, subject to the completion of a takeover by a consortium comprising Pandox AB and Eiendomsspar AS. The transaction will add 56 hotels, totaling approximately 12,000 rooms, to Scandic’s portfolio, with an additional pipeline of around 1,900 rooms primarily located in Ireland and the UK.
The acquisition is contingent upon the consortium’s successful takeover of Dalata, the separation of Dalata’s real estate and operating businesses, and receipt of necessary regulatory approvals. The Dalata board has unanimously recommended the consortium’s cash takeover offer for the entire share capital of Dalata.
Under the terms of the agreement, Scandic will manage 53 hotels on a leasehold basis and three under management agreements. Scandic will enter new lease agreements with the consortium for 31 hotels, while the remaining hotels will continue under existing third-party agreements. The consortium will retain ownership of Dalata’s freehold and long leasehold property portfolio.
The transaction is expected to be completed by the end of 2026, following the consortium’s takeover of Dalata. During the interim period, Scandic will manage Dalata’s hotel portfolio under a management agreement, receiving a quarterly management fee based on the operating business’s revenue.
Scandic will pay approximately EUR 500 million for the operating business, subject to normal completion adjustments for cash, net debt, and net working capital. The transaction will be financed through available cash and debt facilities, with commitments from DNB and Nordea.
Dalata Hotel Group, primarily operating in Ireland and the UK, reported revenue of EUR 652.2 million and an operating profit of EUR 158.5 million for the financial year ending December 31, 2024. The acquisition is expected to enhance Scandic’s presence in these markets, which are characterized by high average room rates, strong occupancy levels, and good revenue per available room performance.
