Pandox, a hotel property company in northern Europe, has acquired seven hotel properties with a total of 1,532 rooms in Germany from HR Group for €290 million.
The acquisition is expected to be financed by liquid funds and new bank loans, says the company in a statement.
The hotels will continue to be managed by HR Group under fixed leases with indexation, which will be converted into revenue-based leases by 2024 at the latest. The hotels are expected to contribute approximately €16.5m in rental income and €16.4m in net operating income, on an annualised basis. The acquisition is expected to close during the fourth quarter 2019.
“The acquisition is industrially sound and complements Pandox’s portfolio well both geographically and brand-wise and deepens our cooperation with the fast-growing HR Group. The hotel properties have strategic locations in stable domestic cities in Germany and are mainly driven by domestic demand with a good balance between the business, meeting and leisure segments. The hotels are full-service hotels in the upper mid-scale segment with an average size of 219 rooms with clear development and growth potential. The acquisition also further reinforces Pandox’s market position in the largest hotel market in Europe.”, says Anders Nissen, CEO of Pandox.
“HR Group is pleased to develop its strategic cooperation with Pandox, which is one of the leading hotel property companies in Europe. The transaction marks an additional key milestone in HR Group’s successful growth history to become the leading white-label hotel operator in Central Europe. We look forward to continuing to operate and develop the seven hotels together with our teams with the objective to create even better guest experiences.”, says Ruslan Husry.”, CEO of HR Group.