Dalata Hotel Group is to close the Clyde Court Hotel in Ballsbridge on January 1 2016, although the hotel’s 100 employees are expected to retain their jobs elsewhere in the group’s hotel portfolio.

The Clyde Court was formerly known as the Berkeley Court Hotel, which was the jewel in the crown of legendary Irish hotel developer PV Doyle. After his died, his family sold the hotel to property developers.

The Clyde Court Hotel site will be redeveloped by Chartered Land, which owns both the Ballsbridge and Clyde Court hotel properties.

Dalata, which is headed up by CEO Pat McCann, has agreed terms with Chartered Land to extend the lease on the Ballsbridge Hotel to at least April 2018.

McCann said: “While there is a certain sadness at the closure of the Clyde Court Hotel, I am delighted that the Ballsbridge Hotel will continue in operation until at least April 2018.

In Association with

“Dalata has an excellent working relationship with Chartered Land and we look forward to working with them over the coming years.

“The certainty that we will operate the Ballsbridge Hotel until at least April 2018 is very good news not least for our employees, customers and suppliers, but also ensuring that there are 400 rooms and a multitude of meetings rooms available in a market that requires additional hotel space.”

Dalata is in the process of raising €160m in fresh equity capital, which McCann (pictured) said would allow the group to acquire additional freehold hotels in Ireland, add bedrooms at certain existing hotels and explore opportunities to build new hotels in Dublin.

Chartered Land called time on Dalata Group's Clyde Court Hotel lease

Leases

Dalata initially entered into a one-year lease for the Ballsbridge Hotel in January 2012 and continued to operate the hotel under that lease until December 2013, when it entered into a lease with a term of five years from April 2013.

Under the terms of this lease there are break options on December 31 2015 and September 30 2016. Following negotiation with Chartered Land around the surrender of its lease on the Clyde Court, Dalata will continue to operate the hotel under lease, with no break options, until at least April 2018.

Dalata agreed a five-year lease for the Clyde Court Hotel from April 2013, but under the lease terms, the landlord had a break option on December 31 2015 which has now been exercised by Chartered Land.

The Clyde Court Hotel is a four-star hotel located in Ballsbridge, comprising 185 rooms, a bar, restaurant, conference rooms and a function room.

Redevelopment

Both the Ballsbridge and Clyde Court hotels were bought in July by the Abu Dhabi Investment Authority and Chartered Land for around €170m.

The Clyde Court Hotel site is expected to be redeveloped into apartment blocks and retail units by Chartered Land, with construction starting next year.

Dalata is the largest hotel operator in Ireland, currently operating 41 hotels across the UK and Ireland with over 7,000 rooms. Seventeen of the hotels are owned by Dalata, 11 are operated under lease agreements and 13 are operated under management agreements.