Dalata Hotel Group plc, the largest hotel operator in Ireland with a growing presence in the United Kingdom, has announced it has agreed contracts with Art-Invest Real Estate (“Art-Invest”) to acquire a new operating leasehold interest in Hotel Nikko Düsseldorf. The hotel is owned by Art-Invest and Dalata with the cooperation of the hotel team, has commenced the transition process today and expects to open the hotel for guests on February 15th. This hotel represents Dalata’s first step into the Continental European market and is in line with the Group’s ambition to establish a presence in large commercially attractive European cities.
The 4-star hotel is centrally located in Düsseldorf, in close proximity to the Central Business District, the Retail Quarter and the city’s main train station. The property has 393 bedrooms, a bar, two restaurants, a spa, swimming pool, gym and extensive conference and meeting facilities. The hotel has undergone extensive investment in the last number of years.
Düsseldorf is one of Germany’s ‘big seven’ cities and is a hugely popular destination for both international and domestic visitors, travelling for both leisure and business purposes. It received over 3 million visitors in 2019 recording more than 5 million overnight stays in that year.
The rent, with a guaranteed minimum, is determined by the revenue performance of the hotel. The lease term is 20 years, with two 5-year tenant extension options.
Dalata Hotel Group was advised by CBRE on this transaction.
Dermot Crowley, Dalata Hotel Group CEO, commented: “This announcement represents our first step into Continental Europe and is a very exciting opportunity as we work towards building our presence in selected European cities. Whilst retaining our focus on growth in the UK, we have also been exploring opportunities in Europe that are complementary to our portfolio in the UK and Ireland.
I am especially pleased to have secured our first hotel in Germany in such a central location in Düsseldorf. Hotel Nikko Düsseldorf will be an excellent addition to our Dalata portfolio. A Dalata Integration Team is working with the local hotel team to ensure a smooth transition into Dalata.
This is also the first time we have partnered with Art-Invest and we are delighted to have collaborated successfully with one of Europe’s leading hotel investors. We both will continue to invest in the property to ensure it retains its position as one of the top hotels in the city.
We are grateful to CBRE Hotels Germany and Ireland, for their support in aiding our entry into a new market. We look forward to working with them again on future opportunities in Europe.”
Peter Ebertz, Head of Hotels at Art-Invest, added: “We are very excited to enter into a long-term partnership with Dalata to support our continuous efforts in improving the quality and positioning of the Nikko Hotel, a true Düsseldorf icon. Dalata has been an excellent partner and we look forward to jointly investing in the property.”
Sabine Lueftenegger, Director at CBRE Hotels Germany concluded: “We are delighted to have assisted Dalata on the opening of their first hotel in Continental Europe. The Nikko is a landmark hotel in the heart of Dusseldorf and presents an excellent opportunity for Dalata.”
