Swedish hotel developer, owner and operator Pandox has agreed to acquire the 398-guestroom Hilton London Heathrow Airport for £80 million. The development firm's acquisition is expected to be finalized during the third quarter of 2017. According to The Caterer, this is Pandox's first UK hotel acquisition.
Adda Hotel, a subsidiary of Hilton Worldwide, operates the hotel connected to Terminal 4 under a revenue-based lease agreement with 26 years remaining. Over the past few years, all the guestrooms and conferences spaces have been renovated. The group has plans to renovate the restaurant, bar, lobby and gym between 2018 and 2019.
Pandox's earlier acquisitions include the purchase of a seven-hotel European portfolio from U.S. investment firm Invesco Real Estate for approximately $502 last November. The acquisition of the 1,744-room portfolio, which includes four hotels in Germany, two in Australia and one in the Netherlands, was fully funded by a new bank loan and existing credit facilities. The hotels in the portfolio are NH Vienna Airport, Radisson Blu Cologne, NH Munich Airport, Park Hotel Amsterdam, NH Frankfurt Airport, NH Salzburg City and NH Collection Hamburg City.
The firm also finalized the acquisition of seven Nordic hotels and the Silken Berlaymont in Brussels. The Nordic hotels—Scandic Prince Philip, Scandic Hafjell, Scandic Lillehammer, Scandic Sluseholmen, Scandic Kista, Scandic Valdres and Scandic Sørlandet—were reclassified by June 1 as part of the lease agreements between Pandox and Scandic Hotels Group. Before the management agreement of the 274-guestroom Grand Hotel Oslo ended in April, the acquisition of the 212-guestroom Silken Berlaymont was completed. It is currently operated under the Hotel Berlaymont brand.