The Dalata Hotel Group, which operates the Clayton and Maldron brands, has rejected a takeover proposal by property companies Pandox and Eiendomsspar, based respectively in Sweden and Norway.

A statement issued by Dalata said the consortium¡¯s offer of €6.05 per share, at a reported total of €1.3 billion, ¡°materially undervalues the group and its prospects¡± and was unanimously rejected.

Dalata announced in March a strategic review to explore its future and potential sale but said the Pandox consortium had declined to enter the formal sales process on the terms set out by the hotel group last month.

The company confirmed it continues to engage in ¡°constructive discussions with a number of parties¡± who are participating in the formal sales process and have submitted their own proposals to acquire the group.

Dalata operates 55 properties, comprising 25 Maldron Hotels in the UK and Ireland, 26 Clayton Hotels in the UK, Ireland and Germany, and four independent hotels in Dublin.

A statement issued by Pandox and Eiendomsspar said: ¡°As established hotel investors with deep knowledge of the European hospitality sector, and experience from successfully executing similar transactions in the UK and Ireland, the consortium is well-positioned to support Dalata¡¯s business and long-term growth ambitions.¡±

It continued: ¡°The consortium is currently in negotiations with a reputable European hotels¡¯ operator to conclude a framework agreement for the operation of the Dalata hotels should the consortium acquire Dalata.¡±

The portfolio of Pandox includes hotels operated under the Leonardo, Scandic, Radisson and Hilton brands. Eiendomsspar, meanwhile, already owns 8.8 per cent of Dalata¡¯s shares and around 25 per cent of Pandox.