LONDON (Alliance News) – Dalata Hotel Group PLC said on Friday it has agreed the sale and leaseback of the Hotel La Tour in Birmingham for GBP30 million.
Dalata said it has agreed and completed contracts for the sale and leaseback of Hotel La Tour with Deka Immobilien on behalf of Deka Immobilien Investment GmbH, a global real estate company.
In July, Dalata said it had acquired the entire issued share capital of Hotel La Tour (Birmingham) Ltd for GBP31.0m. Hotel La Tour (Birmingham) owns the long leasehold interest of Hotel La Tour, a 174 bedroom-hotel with a restaurant and bar situated on Park Street in Birmingham, UK.
Dalata said it will now operate the hotel on a new fully repairing and insuring lease for a 35 year term. The agreed initial rent for the property is GBP1.6 million per year, and will be subject to five yearly rent reviews, index-linked to the Retail Price Index.
The company said proceeds of the sale will be will be used to reduce net debt arising from its acquisition of Hotel La Tour.
Shares in Dalata were down 1.3% at 434.00 pence on Friday.
By Lucy Heming; firstname.lastname@example.org
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