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 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.