Pandox AB (publ) has entered into an agreement to acquire two hotel properties including operations in the Hague (the Netherlands) and Hannover (Germany) with a total of 421 rooms.
The total transaction value amounts to approximately MEUR 83, excluding minority. The acquisition is financed by existing credit facilities. The hotels will be managed by Grape Hospitality through a management agreement with Pandox and under the existing Novotel brand. Full year 2020 the hotels are expected to contribute approximately MEUR 16 in sales and approximately MEUR 5.4 in net operating income. The acquisition is expected to close during the fourth quarter 2019 and the hotel properties will be reported under the business segment Operator Activities.
“The acquisition contributes to a further geographical and brand diversification of Pandox’s portfolio. 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 offers good growth potential”, says Anders Nissen, CEO of Pandox.
“We are glad to have improved the performance of these two hotels over the last three years and very proud to sell them to Pandox today, one of the key hotel investors in Europe. Grape Hospitality will continue to operate these two hotels with Pandox under a management agreement. With this new contract, Grape Hospitality strengthens its position as a value provider in hotel’s management in Europe”, says Frédéric Josenhans, CEO of Grape Hospitality.