The Competition and Consumer Protection Commission (CCPC) has initiated a full Phase 2 investigation into the proposed acquisition of CG Hotels Limited by DHGL Limited, an indirect subsidiary of Dalata Hotel Group plc.
The move signals regulatory scrutiny over a transaction that would see Dalata, Ireland’s largest hotel operator, take over the Radisson Blu Hotel at Dublin Airport.
The proposed deal, initially notified to the CCPC on November 27, 2024, involves the purchase of the entire issued share capital of CG Hotels Dublin Airport Limited, the entity holding a long leasehold interest in the Radisson Blu Hotel. Dalata, which already operates the Maldron Hotel Dublin Airport and Clayton Hotel Dublin Airport, intends to rebrand the Radisson property as a Clayton hotel upon completion.
Following a preliminary Phase 1 assessment, the CCPC concluded that a more detailed Phase 2 investigation is necessary to determine whether the acquisition would lead to a substantial lessening of competition within the State, particularly in the Dublin Airport hotel market. Submissions from third parties for the current phase are due by May 2, 2025.
Strategic Acquisition in a Key Location
Dalata announced the €83 million transaction in November 2024, highlighting the Radisson Blu Hotel’s strong operational performance, strategic location adjacent to Terminal 2, and development potential. The hotel comprises 229 rooms, extensive meeting and event space, and ample on-site parking on a 4.4-acre site. The property underwent a significant refurbishment in 2019 and reported EBITDA of approximately €6.5 million in 2023.
Dalata emphasized that the acquisition will help secure its presence at Dublin Airport, particularly as the operating licence for its Maldron Hotel at the airport is set to expire in January 2026. The hotel group plans to finance the acquisition through existing cash and credit facilities. Subject to regulatory approval, the transaction is expected to close in the first half of 2025.
Regulatory Concerns and Market Implications
Under Irish competition law, the CCPC assesses mergers and acquisitions to prevent negative consequences for consumers, including reduced price competition, diminished service quality, or limited innovation. Given Dalata’s dominant footprint in the Irish hotel market—currently operating 32 hotels across the State under the Clayton and Maldron brands—the proposed acquisition raises concerns about further market consolidation at a critical hospitality hub.
While the CCPC has made no final determination, the decision to escalate the review to a Phase 2 investigation indicates the authority’s intent to closely examine the competitive dynamics at Dublin Airport, where hotel options are already limited and high in demand.
Dalata executives have reiterated their readiness to cooperate with the CCPC and expressed confidence in securing approval. Shane Casserly, Deputy CEO of Dalata, described the transaction as a “compelling opportunity” that aligns with the group’s investment strategy, while CEO Dermot Crowley highlighted Dalata’s commitment to “disciplined growth and capital efficiency.”
