Dalata to build Clayton Hotel in Glasgow

AIM-listed Dalata Hotel Group has signed an agreement to lease a new Clayton Hotel to be built in Glasgow, with Artisan St. Enoch Quarter Limited, a subsidiary of Artisan Real Estate Investors Limited.

The new hotel will be a 4-four star property located in the centre of Glasgow on the River Clyde, close to Glasgow Central Station and within walking distance of the main shopping thoroughfares and the international financial services district.

It will have around 300 air-conditioned bedrooms, a bar, restaurant and conference facilities. On completion of construction, Dalata will begin operations in the hotel through a 35-year operating lease, which will be subject to five-year rent reviews linked to the retail price index.

Construction of the hotel, due to open in the fourth quarter of 2020, is subject to planning permission from Glasgow City Council.

Dalata already operates seven hotels in the UK, with a new Clayton hotel planned for the centre of Manchester as announced in September.

Dermot Crowley, deputy chief executive officer of business development and finance, said: “Glasgow is one of the 20 cities that we have announced today as a target city for our Clayton and Maldron brands. Glasgow is not only Scotland's largest city, it is also a city with an exciting mix of large corporate employers, extensive conference and event facilities and leisure attractions.

“We are very pleased to have secured such a prime location as Clyde Street and look forward to workings with Artisan Real Estate Investors in developing this new Clayton hotel.”

At 1030 GMT, the shares were up 1.4% to 505p.