Sweden's Pandox buys European portfolio from Invesco

Swedish hotel investment group Pandox has entered into an agreement with U.S. investment firm Invesco Real Estate to acquire seven hotels in Europe: four in Germany, two in Austria and one in the Netherlands, totaling 1,744 rooms.

The acquisition price amounts to €415. The acquisition is fully financed by a new bank loan and existing credit facilities.

The seven hotels are:

NH Vienna Airport    
Radisson Blu Cologne    
NH Munich Airport    
Park Hotel Amsterdam    
NH Frankfurt Airport   
NH Salzburg City    
NH Collection Hamburg City

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“The acquisition fulfills all Pandox’s strategic criteria regarding size, location, market position and profitability, as well as contributes to a further diversification of our revenue base. The hotel properties are of very high quality, are operated by well-known hotel operators under long-term revenue-based lease agreements and will give a substantial revenue contribution to Pandox’s already strong lease portfolio. Through the acquisition Pandox enters two new hotel markets and four new interesting hotel cities. We strengthen our presence in Germany, which is the largest hotel market in Europe, and add two new strong operators to our cooperation portfolio. With this acquisition we also demonstrate that there is substantial potential for Pandox to grow its core business with good profitability on the major hotel markets in Europe,” said Anders Nissen, CEO of Pandox.

The drivers for the acquisition according to Pandox are:

1. The hotel property portfolio is of very high quality and comprises full-service hotels in the upper segment with an average size of 250 rooms (approx.).

2. The acquisition price per room amounts to an attractive MSEK 2.35 (approx.).

3. Strengthens Pandox’s market position in Germany with an additional three hotels in Frankfurt, Hamburg and Cologne, and one hotel in Munich, which is a new city for Pandox.

4. Establishes Pandox in Austria and the Netherlands with three hotels in Vienna, Salzburg and Amsterdam, which are all new countries and cities for Pandox.

5. The hotels are located in major cities with strategic positions and a good balance between the business and leisure segments, as well as international and domestic demand.

6. The hotels are operated by well-established hotel operators (NH Hotels, Rezidor and Grand City Hotels) under well-known brands (NH, Radisson Blu and Park Hotel Amsterdam) with long-term revenue-based lease agreements with rental guarantee levels and shared investments, which is the core of Pandox’s business model.

7. The hotels contribute immediately and positively to Pandox’s earnings and cash flow.

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