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Competition watchdog clears hotels deal

The competition watchdog has cleared hotel group Dalata’s acquisition of CG Hotels, subject to legally binding commitments.  

The Competition and Consumer Protection Commission (CCPC) opened an in-depth investigation into the deal earlier this year. 

Dalata operates the Maldron Hotel Dublin Airport and the Clayton Hotel Dublin Airport, while CG Hotels currently operates the Radisson Blu Hotel Dublin Airport. 

The commission had concerns about the effect of the deal on competition in the hotel market near Dublin Airport.

Maldron Hotel Dublin Airport 

“These concerns included that the proposed acquisition could lead to Dalata having a high market share of hotel rooms at, or close to, Dublin Airport, and that the Maldron Hotel Dublin Airport, operated by Dalata, and Radisson Blu Hotel Dublin Airport, operated by CG Hotels, currently compete closely,” the watchdog stated. 

To address the CCPC’s concerns, Dalata proposed binding commitments on the future management and operation of the Maldron Hotel Dublin Airport. 

The commission said that these commitments, which would ensure continued competition between operators of hotels at, or close to, Dublin Airport, had formed part of its decision to approve the acquisition. 

An independent monitoring trustee is to be appointed to ensure that Dalata complies with the commitments. 

Dalata itself recently rejected a €1.3 billion takeover offer from Scandinavian property companies Pandox and Eiendomsspar.