Dublin's largest city hotel is on course for another rebranding, after Dalata confirmed it has agreed to lease the old Burlington hotel, which currently trades as Doubletree by Hilton.

Dalata, Ireland's largest hotel operator, says it will rename the 502-bedroomed hotel under its Clayton brand. It is understood the name over the door is likely to be Clayton Burlington Road, giving a return of sorts for Burlington, one of the best-known monikers in the Irish hotel business.

Dalata told the stock exchange this afternoon that it has agreed a conditional deal to take on a 25-year lease for a payment of €2.5 million. It will lease the hotel from German investment fund, Deka, which has agreed to purchase the property from Blackstone, who put it on the market for €180 million.

Competition clearance

The deal with Dalata is subject to clearance from the Competition and Consumer Protection Commission, and also to Deka closing its deal with Blackstone. The transaction is scheduled for completion in November.

Last year, the hotel generated revenues of €29.5 million and profits of €2.2 million. Dalata said under the terms of its operating lease, the hotel would have made a contribution to its operating profits of €4.3 million if the deal was in place last year.

The hotel, which was bought by Bernard McNamara in a high watermark deal right before the collapse of the last boom, was extensively upgraded by Blackstone and requires no further work from its new owners.

It is one of the largest conference facilities in Dublin, and easily the largest hotel in the city centre.