Macfarlanes, CMS advise on €1.4bn takeover of Ireland’s largest hotel group

Macfarlanes and CMS are advising on the €1.4 billion all-cash acquisition of Dalata, Ireland’s largest hotel group, by a Swedish-Norwegian consortium, in a deal set to shake up the European hotel market.

Announced on Tuesday (15 July), the play will see Stockholm-based hotel property giant Pandox and Norwegian real estate investor Eiendomsspar acquire dual-listed Dalata through a scheme of arrangement, expected to complete later in the year.

The deal

Dalata owns and operates 56 hotels, primarily under the Clayton and Maldron brands, across the UK and Ireland, Germany and the Netherlands. It is a member of the ISEQ 20 index of Ireland’s largest listed companies, with a secondary listing on the London Stock Exchange.

Pandox is one of Europe’s biggest hotel property groups. It owns 163 hotels across 11 European countries. Eiendomsspar, meanwhile, is one of Norway’s largest real estate owners, and has a stake in Pandox.

The consortium plans to separate Dalata’s real estate and hotel operating businesses.

The real estate will be owned by property holding companies, while long-time Pandox partner Scandic - a Stockholm-based hotel chain - will operate all Dalata hotels under a management agreement. Scandic will also have an option to acquire the operating business for €500 million following the split.

Advising

Macfarlanes is acting for Pandox alongside Matheson, which is advising on Irish matters. Real estate partner Victoria Hills is leading the team, alongside corporate partners Richard Burrows and Max Mittasch.

CMS is advising Scandic, led by corporate partner Thomas Page and real estate partner Scott Curtis.

Irish firms A&L Goodbody and Hayes are also involved, advising Dalata and Eiendomsspar, respectively.