The Dean Hotel Group has agreed to sell the majority interest in its business to an investment vehicle that is led and managed by Lifestyle Hospitality Capital (LHC) Group, with funds advised by Elliot Investment Management, as reported by the Irish Times.
This deal reportedly values The Deal Hotel Group’s portfolio at €350m ($370.02m). The portfolio consists of eight operational hotels and two hotels under development.
The Dean Hotel Group is owned by Paddy McKillen Jnr and his business partner Matt Ryan.
After the sale of over 70% of the stake to the investors, Paddy McKillen Jnr and the McKillen Company will retain the stake in The Dean Hotel Group, according to HospitalityNet.
The portfolio of eight hotels will continue to be operated and managed by The Dean Hotel Group under its brands.
These brands include Mayson, Clarence, Devlin, Dean and Leinster.
The Dean brand has three hotels in Ireland and plans to open two more by 2025 in the UK.
Elliott Investment is a New York alternative investment corporation founded by billionaire activist investor Paul Singer, while LHC is a speciality hospitality real estate investment corporation.
LHC and Elliott Investment Management intend to push for expansion of the hotel group’s brands in Europe and the US, as also reported by the Irish Times, citing sources.
Paddy McKillen Jnr said: “We are delighted to have agreed this transaction, which will create a partnership between Ireland’s leading hospitality company and a best-in-class hospitality investment management platform.
“We are confident that The Dean Hotel Group will continue to thrive, as our partners at LHC both understand and embrace our distinctive Irish vision of hospitality that runs through The Dean Hotel Group portfolio.”
LHC founder and CEO Keith Evans said: “As experienced investors in this space, we were drawn to the exceptional collection of locally designed and curated hotels, bars and restaurants that Paddy and his team have developed.
“We look forward to continuing to honour The Dean Hotel Group’s Irish heritage as we work together to deliver on the next phase of growth for the portfolio.”
The deal is expected to be completed by the end of 2023, subject to the fulfilment of customary closing requirements.
Additionally, The Dean Hotel Group will continue to operate the restaurants and bars under its brands, such as Roberta's, Sophie's, Ryleigh's and Layla's.
