Stockholm-based Pandox AB has entered into an agreement to acquire two Novotel-branded hotel properties (including operations) with a total of 421 rooms in the Hague, the Netherlands, and Hannover, Germany, from European owner and operator Grape Hospitality.
The total transaction value amounts to approximately €83 million on a debt-free basis. The acquisition is being financed by existing credit facilities.
The Novotel Den Haag World Forum and the Novotel Hannover will continue to be managed by Grape Hospitality—which has managed the properties over the past three years—through a management agreement with Pandox and under the existing Novotel brand. For full-year 2020, the hotels are expected to contribute approximately €16 million in sales and approximately €5.4 million in net operating income.
The acquisition is expected to close during the fourth quarter 2019. As part of the transaction, Pandox will enter into an agreement with Eiendomsspar AS through ES Hotellus AS regarding minority ownership of 5.1 percent for the Novotel Hannover.
"The acquisition contributes to a further geographical and brand diversification of Pandox’s portfolio," Pandox CEO Anders Nissen said in a statement. "Novotel Den Haag World Forum has a strong location in a city with well-diversified demand from the business, meeting and leisure segments, including tangible and growing international demand. Novotel Hannover is mainly driven by domestic German demand from business and meetings. Both the Hague and Hannover are strong congress and event destinations. Furthermore, the hotels are well-invested with positive guest reviews and offer good growth potential."
Pandox’s hotel property portfolio currently comprises 146 hotels with approximately 32,700 hotel rooms in 15 countries.