Hotel group Dalata buys Shoreditch site from Foxtons tycoon’s property firm

By:

Add as a preferred source on Google
LONDON, ENGLAND - MARCH 15: Vehicles negotiate the Old Street roundabout in Shoreditch, which has been dubbed 'Silicon Roundabout' due to the number of technology companies operating from the area on March 15, 2011 in London, England. The relatively low rental rates and proximity to media and internet companies has made the area close to the roundabout a prime location for IT firms and web entrepreneurs. (Photo by Oli Scarff/Getty Images)

Hotel operator Dalata has snapped up a plot of land in Shoreditch from Foxtons tycoon Jon Hunt’s property firm in a deal worth £32m.

The Irish company today said it has secured the purchase of the Paul Street site, which has planning permission for a hotel with up to 140 rooms.

Read more: Easyhotel bidders secure takeover despite founder’s protests

Dalata reached the agreement with property development firm Ocubis, which is run by Foxtons founder and billionaire Hunt.

The new owner said it plans to build London’s first Maldron hotel on the site. The new hotel, which will cost £60m including the land purchase, is set to open in early 2022.

“The strong performance of our Clayton Hotel Canada, which opened in January 2019, reinforces our belief that there is great value in owning and operating a hotel in the centre of the city,” said Dalata chief executive Pat McCann.

“Our existing hotel portfolio is generating very strong cash flows and this allows us to take advantage of such great opportunities while keeping our gearing at very comfortable levels.”

Read more: UK hotel profit soars at Brits holiday at home

The announcement came as Dalata reported a 12 per cent rise in revenue in the first half of the year to €201.9m (£183m), and a 6.7 per cent increase in pre-tax profit to €37.8m.

Shares in Dalata closed up just under 6.5 per cent.

Main image credit: Getty