Pandox Acquires 18 Hotels in Germany for $435 Million
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Pandox AB has announced the acquisition of 18 hotels comprising more than 3,400 rooms in Germany in a deal worth $435 million.
The hotels were purchased from Israel's Fattal Hotels of Israel and the U.K.'s Leopard Group.
Pandox, an investment company based in Stockholm, Sweden, boasts a property portfolio consisting of more than 100 hotels and 22,000 rooms across eight countries in northern Europe.
In a statement following the acquisition, the company's CEO Anders Nissen said the deal "fulfils all Pandox's strategic criteria as regards size, city, location, market position and profitability, and strengthens our position on the important German market."
As Nissen alluded to, the full-service hotels are mostly located in city centers and near airports in Frankfurt, Dusseldorf and Hannover, among other cities.
"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," he added.
Meanwhile, Fattal Hotels CEO David Fattal said his company was "privileged" to be a part of the deal.
"We look forward to a very close cooperation and hope that we will be able to further expand ourselves for our mutual benefit," Fattal concluded.
Drivers for the acquisition included the hotels' location, size (190 rooms on average), long-term development potential and the beneficial partnership forged with Fattal Hotels, among others. Boasting 449 rooms, the Leonardo Royal Frankfurt is the largest acquired in the deal, while the 99-room Leonardo Aachen is the smallest.
The recent acquisition increases the value of Pandox's portfolio from $3.26 billion to $3.7 billion.
The deal is expected to be completed by the end of the year pending the required approvals by German authorities.
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