Pandox AB
Anders Nissen - Pandox
According to Pandox CEO Anders Nissen, "The acquisition fulfils all Pandox’s strategic criteria as regards size, city, location, market position and profitability, and strengthens our position on the important German market."
The Swedish hotel owner Pandox has just bought a portfolio of 18 hotels in Germany from Israeli hospitality groups Fattal and UK-based Leopard for SEK 3.7bn (€400m), at an initial yield of about 6.3%.
The 3,415-room package was acquired in a joint venture with Norwegian group Eiendomsspar, which has taken a minority stake of 5.1%.
The hotels are positioned in the upper mid-market segment and are primarily marketed under the Leonardo Hotels brand. Pandox has signed new 25-year revenue-based lease agreements with Fattal Hotels for all of the hotels.
Located across 12 German cities, the hotels have either recently been refurbished or are currently under refurbishment. They are all full-service hotels in the upper mid-market segment, with an average size per hotel of 190 rooms. Pandox said it expects the portfolio will contribute the equivalent of SEK 150m in cash earnings in 2016.
According to Pandox CEO Anders Nissen, "The acquisition fulfils all Pandox’s strategic criteria as regards size, city, location, market position and profitability, and strengthens our position on the important German market. The transaction is also completely in line with Pandox’s business model, which is based on long-term lease agreements. Furthermore, Fattal Hotels is a new strong long-term partner and the hotels have good development potential."
Financing of the deal was by a new and agreed five-year bank loan, existing bank loans and existing liquid funds, said Pandox. The deal, which is expected to be completed by the end of 2015, increases the value of Pandox's portfolio from SEK 27.7bn to SEK 31.4bn.
The hotels in the portfolio are:
Leonardo Royal Frankfurt
Holiday Inn Frankfurt Airport North
Leonardo Royal Düsseldorf Königsallee
Leonardo Hannover Airport
Leonardo Wolfsburg City Center
Holiday Inn Düsseldorf Airport
Leonardo Hamburg City Nord
Leonardo Hannover
Leonardo Köln-Bonn Airport
Leonardo Heidelberg
Leonardo Heidelberg-Walldorf
Leonardo Royal Köln am Stadtwald
Leonardo Mannheim City Center
Leonardo Karlsruhe
Leonardo Düsseldorf City Center
Leonardo Mönchengladbach
Leonardo Royal Baden-Baden
Leonardo Aachen
