Skift Take
An investment vehicle backed by Elliott Management has invested in hotels, following similar moves by other big-money firms. Fun fact: The $370 million deal coincides with the acquisition of U2's The Clarence Hotel.
The Dean Hotel Group, which runs a handful of high-end properties in Ireland, has sold a majority stake to an investment vehicle backed by funds advised by Elliott Management.
The companies didn’t disclose the deal’s terms or value. The deal valued Dean Hotel Group at about $372 million (€350 million), The Currency reported.
In a related move, the group acquired The Clarence, a Dublin luxury hotel, from members of the rock band U2.
Big-Money Firms Chase Hotels
The majority acquisition was done by an investment vehicle led by Lifestyle Hospitality Capital (LHC) and backed by funds advised by Elliott Investment Management — part of an investment group run by legendary activist investor Paul Singer.
Elliott’s move comes as upturned financial markets are giving an edge to investment firms able to negotiate financing at better terms than smaller players.
- Certares, a private equity firm, this year closed a $284 million fund to acquire 10 hotels in U.S. markets.
- Blackstone in 2021 took a majority stake in Extended Stay America, a minority stake in Sunstone Hotel Investors, and is said to be now looking especially in Japan for hotel investments.
- KKR recently invested in the Hyatt Regency in Tokyo.
U2 Band Members Sell Hotel
Musical artists Bono and The Edge sold The Clarence Hotel on October 19 in an unspecified multi-million dollar deal to The Dean Hotel Group.
Dean Hotel Group received a $46 million (€43 million) loan to acquire the freehold, add 43 guestrooms, and refurbish the other 58 guestrooms. It has managed the property since 2019.
Having bought The Clarence, the group — under the Press Up management brand — now runs eight Irish properties, including The Dean, The Mayson, and The Devlin.
Its pipeline includes two hotels slated to open in Ireland, plus one in Belfast and one in Birmingham.
UPDATE: Corrected to note it’s “funds advised by Elliott Management.”
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Tags: dublin, elliott management, future of lodging, hotel investments, ireland, mergers and acquisitions, private equity
Photo credit: The front desk reception area at The Clarence Hotel in Dublin and formerly owned by Bono and The Edge of the band U2. Source: Dean Hotel Group.