Dalata Hotel Group Plc signed an agreement with Deka Immobilien for the sale and leaseback of the four-star Hotel La Tour in Birmingham, U.K., for £30 million.
The company will now become the hotel's operator via a fully repairing and insuring lease for a term of 35 years, with initial rent for the property set at £1.6 million annually.
Proceeds from the sale will reduce debt from the £31.0 million acquisition of the Hotel La Tour (Birmingham) Ltd., the hotel's former owner, on July 21.
The 174-bedroom hotel also features a restaurant and a bar, along with conference and meeting facilities. It will be rebranded into a Clayton hotel in the fourth quarter.