Dalata has acquired the freehold of the 216-bedroom Clayton Hotel in Cardiff, Wales for £24 million (€27million), the group said on Wednesday.

The four-star hotel, which is located close to Cardiff Central train station and the Principality stadium, was bought as part of a deal that sees Dalata acquiring Rush (Central) Limited.

The company holds a leasehold on the property until 2046 at an annaual rate of £1.511million per annum subject to upward only rent reviews at five year intervals.

Rush also owns a restaurant on the ground floor of the building, which is leased to Viva Brazil Cardiff Limited on a 20-year lease that is due to expire in 2032.

Dermot Crowley, Dalata’s deputy chief executive business development and finance, said the hotel had performed strongly this year and that the transaction was consistent with the group’s stated strategy of buying out the freehold interests of leased properties with future unpredictable rent reviews.

In a note to investors, Davy said that at current exchange rates, the acquisition is expected to add about €1.7 million to 2017 earnings before interest, tax, depreciation and amortisation (ebitda) .

Davy forecast that Dalata has about €15 million left in funds to spend.