Scandic Hotels to Acquire Dalata Hotel Operations in Ireland and UK

Scandic Hotels Group has entered into a framework agreement with a consortium comprising Pandox AB and Eiendomsspar AS, intending to acquire the hotel operations of Dalata Hotel Group. The transaction's completion hinges on multiple conditions, including the consortium's successful takeover bid for Dalata, the separation of Dalata's real estate and operating businesses, and regulatory approvals.

Should the deal proceed, Scandic would add 56 hotels with approximately 12,000 rooms to its portfolio. This expansion, primarily in Ireland and the UK, would also include a pipeline of around 1,900 additional rooms. Dalata reported EUR 652.2 million in revenue and EUR 158.5 million in operating profit for the fiscal year ending December 31, 2024.

The anticipated purchase price for Dalata's operating business is EUR 500 million. Scandic plans to manage Dalata’s hotels temporarily via a management agreement between the consortium's acquisition and Scandic's own deal completion, expected around the end of 2026. Scandic's financing for the transaction will come from existing cash and committed debt facilities.

Dalata is identified as Ireland's market leader with an established UK presence, operating brands like Clayton and Maldron. Scandic views this as a strategic growth opportunity in new markets, acknowledging it may temporarily increase leverage beyond its long-term target.