Dalata brings Clayton brand to Edinburgh

Pictured: A Clayton hotel is coming to St Andrew’s Square, Edinburgh.
Ireland-headquartered Dalata Hotel Group is expanding its presence in Scotland with the acquisition of a development site at 28 St Andrew’s Square, Edinburgh.

The development site was acquired for a total consideration of £12.5 million from Aviva Life & Pensions UK Limited.

Four star plan

The site includes a category A listed building which is currently vacant and approved for office use, with planning permission granted for an extension to both the rooftop and rear of the property.

Dalata plans to submit a revised planning application in Q1 next year, enabling the construction of a new four star Clayton Hotel, which is expected to be completed by mid-2026.

Period property

The group’s hotel scheme is designed to work within the new building envelope permitted under the existing planning permission. Subject to a successful revised planning application the hotel will incorporate 153 bedrooms, a bar, restaurant, dry gym and two large meeting rooms with period features on the first floor overlooking St. Andrew’s Square.

The overall investment in the project, including the site purchase, will be circa £48 million, creating around 60 new employee positions when the hotel is operational.

Sustainability strategy

The new hotel, as part of Dalata’s sustainability strategy, will be one of the company’s first to be designed to operate with zero on-site carbon emissions.

As a conversion scheme, it will also have considerably lower embodied carbon than a new build.

Target city

Dermot Crowley, CEO, Dalata commented: “Edinburgh has long been a target city for us to locate our brands and we are delighted to have secured such a prestigious building in the centre of the city. This will be our third hotel in Scotland.”

Shane Casserly, corporate development director, Dalata, added: “Edinburgh is one of the top performing hotel markets in Europe and we are delighted to secure a development site in such a prestigious location. Our development team has extensive experience and history in delivering complex projects, we look forward to collaborating with Edinburgh authorities, to deliver a flagship Clayton hotel with zero onsite operational carbon by mid-2026.”

Amsterdam addition

Elsewhere, Dalata has also completed a transaction to enter the hotel market in the Netherlands with the acquisition of the leasehold interest in Hard Rock Hotel Amsterdam American for a total consideration of €29.5 million from Zien Group.

The four star hotel, which is owned by Deka Immobilien, is centrally located in Amsterdam and consists of 173 bedrooms, ground floor lobby, café and bar. Renowned for its iconic Café and Bar Americain, this landmark hotel has undergone a €14.5 million renovation since 2020.

Enhancement scope

The hotel is being rebranded to Clayton Hotel Amsterdam American and Dalata will invest approximately €4.5 million to enhance the property over the coming years. Included within these enhancements is a substantial investment in its sustainability credentials, which will result in a significant reduction in the carbon footprint of the property.

The hotel with an expectation of stabilised annual earnings of circa €5 million, will be Dalata’s first hotel in Amsterdam and second hotel in continental Europe.