Ireland-based hotel operator Dalata Hotel Group has signed a lease agreement with Tower 42 Estate for the development of a new four-star Clayton hotel in London, UK.

The hotel is scheduled to open in the second half of 2028, subject to planning approval.

The development is to be situated in the city’s financial district and will feature 154 bedrooms, a restaurant, a bar, and a gym. Designed as an all-electric building, it will utilise heat pump technology and target for a BREEAM accreditation. 

The Tower 42 Estate offers connectivity, being less than a five-minute walk from Liverpool Street and Bank Underground stations.

Upon completion of the construction, Dalata will begin operating the hotel under a 25-year operating lease, with rent reviews every five years indexed to the Consumer Price Index.

Earlier this year, Dalata opened four new locations in the UK, including the Maldron Hotel Shoreditch in August. The new Clayton hotel will increase Dalata’s London portfolio to 1,030 rooms across six hotels.

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Dalata Hotel Group deputy CEO Shane Casserly said: “We are excited to expand our footprint in London, with this transaction illustrating the flexibility of our business model as we deliver further growth through leasing, as well as acquisition and development.

“We are particularly pleased to have commenced a partnership with the Tower 42 Estate, which offers an unrivalled mix of uses in a best-in-class location. As part of our Vision 2030, London continues to be a key target city for Dalata, and we believe significant opportunity exists for both our Clayton and Maldron brands.”

In a separate development, Dalata has recently exchanged contracts for the acquisition of CG Hotels Dublin Airport, which holds the long leasehold interest in the Radisson Hotel, Dublin Airport, further solidifying its position in the hospitality sector.