Pandox AB has entered into an agreement to acquire the Hilton Brussels Grand Place in Belgium for €55 million.
The purchase is expected to be completed during the fourth quarter of this year, and will be financed by existing credit facilities. For 2017, the 224-room hotel is expected to generate approximately €13 million in revenue and €2 million in cash earnings.
“The acquisition of Hilton Grand Place Brussels is industrially sound and offers good potential,” Pandox CEO Anders Nissen said. “The hotel is strategically located adjacent to the Grand Place in Brussels with direct access to the central station, and benefits from both business and leisure demand. Based on its location, product, brand and meeting offering the hotel has good prospects to further gain market shares. The hotel property adds a distinct value to Pandox’s hotel portfolio in the continued development of the hotel market in Brussels.”
The hotel is located in between the Grand Place and the Square Meeting & Convention Centre. It is also close to public transportation options.
Beyond the purchase price, Pandox will invest €3 million in room upgrades over the next two years. The total investment corresponds to a yield of more than 6 percent. The hotel is currently operated under a management contract with Hilton, but that can be converted to a franchise agreement in 2019.