Paddy McKillen Jnr and his business partner Matt Ryan have agreed to sell a majority stake in the Dean Hotel Group to UK property group Lifestyle Hospitality Capital and Elliott Investment Management, the New York alternative investment giant founded by billionaire activist investor Paul Singer.
The Irish duo will retain a minority stake and remain involved in the business, the Dean Hotel Group said on Tuesday. A spokeswoman for the group declined to comment on the size of the stake or the value that the deal puts on the business.
The hotels will continue to be managed and operated by the Dean Hotel Group under its own brands including the Dean, the Mayson, the Clarence, the Devlin, and the nearly-completed Leinster hotel in Dublin as well as and Glasson Lakehouse near Athlone in Co Westmeath.
The group also has two hotels that are set to open in the UK by 2025. The award-winning restaurants and bars will also continue to be operated internally by The Dean Hotel Group under its own brands such as Sophie’s, Ryleigh’s, Roberta’s and Layla’s, the group said in a statement.
The structure of the deal will see a majority stake be sold to an investment vehicle that is managed by Lifestyle Hospital Capital, which is led by hotel dealmaking veteran Keith Evans, and backed by Elliott Investment Management Funds.
The deal is expected to close by the end of the year.
“We are delighted to have agreed this transaction, which will create a partnership between Ireland’s leading hospitality company and a best-in-class hospitality investment management platform,” said Mr McKillen. “We are confident that the Dean Hotel Group will continue to thrive, as our partners at LHC both understand and embrace our distinctive Irish vision of hospitality.”
Mr Evans said: “As experienced investors in this space, we were drawn to the exceptional collection of locally designed and curated hotels, bars and restaurants that Paddy and his team have developed. We look forward to continuing to honour the Dean Hotel Group’s Irish heritage as we work together to deliver on the next phase of growth for the portfolio.”
