Dalata Hotel Group has agreed a lease for a new four-star Maldron hotel on Hammersmith Road in Kensington, cementing London’s status as the group’s most important UK market and signalling continued growth ambitions under its new Nordic ownership structure.
The Maldron Kensington will be Dalata’s seventh property in London, located adjacent to the recently redeveloped £1.3bn Olympia London exhibition centre. The announcement arrives just months after a significant corporate transition that fundamentally reshaped Dalata’s operating model.
A strategic bet on Kensington’s transformation
The full-service hotel is scheduled to open in 2029, subject to planning approval, and will comprise approximately 370 guestrooms alongside a restaurant, bar, dry gym and extensive business centre.
The location carries considerable strategic logic. The £1.3bn Olympia London redevelopment includes 550,000 sq ft of premium office space, more than 20 food and beverage outlets, exhibition capacity for 26,000 visitors, a 1,575-seat theatre and a 3,800-capacity entertainment venue – creating a demand ecosystem for corporate and leisure guests alike.
According to the development, the district is expected to attract over 12 million visitors annually, a figure that would underpin consistent hotel occupancy across multiple segments.
Building on established partnerships
The project will be delivered by Dalata’s long-standing development partner McAleer & Rushe Property, and will involve the conversion and extension of a vacant office building. Designed as an all-electric building, the hotel will incorporate heat pump technology and target BREEAM ‘Excellent’ accreditation.
Repurposing vacant office stock is an approach gaining traction across European gateway cities, where planning constraints limit new-build development and sustainability credentials have become a competitive differentiator for both corporate travellers and institutional investors.
The hotel will also benefit from strong transport connectivity, with multiple underground stations within walking distance providing access to the Piccadilly, District, Circle, Hammersmith & City and London Overground lines.
New ownership, continued expansion
The Kensington announcement is the first major new-site signing under Dalata’s restructured ownership. Scandinavian property companies Pandox and Eiendomsspar acquired Dalata – Ireland’s largest hotel group – for €1.4 billion, with the deal completing in November 2025. Scandic Hotels Group subsequently assumed operational responsibility for the entire portfolio of 56 hotels and approximately 12,000 rooms, with a further pipeline of around 1,900 rooms primarily in Ireland and the UK.
The Maldron Kensington adds to that pipeline and signals that development momentum has not stalled through the ownership transition.
Dermot Crowley, CEO of Dalata Hotel Group, described the signing as a milestone: ‘London is a key strategic market for Dalata, and this prime location, adjacent to the newly redeveloped Olympia London, positions us strongly to capture both corporate and leisure demand.’
Jens Mathiesen, CEO of Scandic Hotels Group, framed the announcement within the broader integration agenda: ‘As we integrate the hotel brands into the Scandic multi-brand portfolio and operating platform, developments like this demonstrate the strength of our business to grow in key gateway cities across Europe.’
Near-term pipeline on track
The London news accompanies confirmation that Dalata’s existing development pipeline remains on schedule. The group is preparing to open three previously announced hotels before the end of 2026: Maldron Hotel Croke Park, Clayton Hotel Berlin and Clayton Hotel Edinburgh.
Together, these openings span three distinct markets – Ireland, Germany and Scotland – illustrating the geographic breadth of an expansion strategy now operating within a well-capitalised Nordic property structure.
For Scandic, each new Dalata signing also supports the case for its planned outright acquisition of Dalata’s hotel operating business, expected to complete in the second half of 2026 for approximately €500 million. A growing pipeline strengthens both the strategic rationale and the asset base underpinning that transaction.
The Maldron Kensington, when it opens in 2029, will position Dalata at the heart of one of London’s most actively regenerating mixed-use districts – a bet that the capital’s appetite for quality four-star accommodation will remain robust across the remainder of the decade.
