Dalata Hotel Group, Ireland’s largest hotel operator, is entering a new era as Scandic Hotels takes over operations following its acquisition by Pandox. The deal, worth £1.2 billion, was completed this week, solidifying Pandox’s growing dominance in the European hospitality market.

Pandox CEO Liia Nõu said the acquisition “reinforces our position as the leading hotel property owner in Europe,” adding that the deal highlights the company’s ability to execute complex, value-creating transactions with strong partners.

Dalata’s portfolio includes 55 hotels across the UK and Ireland — 30 owned, 11 leased, and three managed — under well-known brands such as Maldron and Clayton. With this acquisition, Pandox now controls 193 hotels, including 39 in the UK and 24 in Ireland, and plans to expand further with 31 new hotels comprising over 6,600 rooms in the two markets.

“The acquired hotels are of high quality, belong to the profitable upper price segment, and provide an immediate and significant contribution to earnings,” Nõu said. “This deepens our market presence in the UK and Ireland — two dynamic hotel markets — and sets the foundation for further long-term value creation.”

Under the new structure, Scandic Hotels will operate the Dalata portfolio through long-term revenue-based lease agreements that include guaranteed minimum payments and shared investments — a model central to Pandox’s business strategy.

The sale follows a challenging financial year for Dalata. In the first half of 2025, the group reported a 45% drop in after-tax profits, falling from €35.8 million (£30.9m) in H1 2024 to €19.6 million (£16.9m). The decline was attributed to costs linked to the strategic review initiated in March ahead of the company’s sale, along with increased non-cash accounting charges.

Despite the short-term dip, the acquisition positions Dalata for renewed stability and growth under Pandox’s expansive European portfolio — with Scandic Hotels bringing its strong operational expertise to the Irish group’s next chapter.