Dalata Hotel Group, which plans to add thousands of rooms to its UK stable, could see its share price spike by 50% in the coming years.
Davy analysts said that Dalata's expansion would be 'asset-light, with the group signing leases, in contrast to its Irish strategy of expanding through hotel acquisitions', as reported by thetimes.co.uk, which added that the Irish hotel group will add the new rooms chiefly through leasing arrangements across regional UK cities.
"The group will add an additional 6,700 rooms in the UK between 2020 and 2025," wrote equity analysts at Davy in a report.
"By end 2025, Dalata's UK room count will reach about 8,932, bringing its total room count to over 14,500. At this stage, we believe the UK will account for 61% of Dalata's room stock versus 25 per cent today."
The report went in to add that, "Direct competition to Dalata at the three-star and four-star level is likely to be more muted given that the majority of this hotel stock is older and, in the case of independents, underinvested.
"This is where Dalata's focus on new, well-located hotel stock will differentiate its brand from peers."
Earlier this month, Dalata announced that it has agreed the deal with Deka Immobilien for the sale and leaseback of the Hotel La Tour in Birmingham for £30 million (€33.2 million).
