Pandox acquires extended stay in Edinburgh for MGBP 40.5
Pandox AB (publ) has entered into an agreement to acquire Adagio Aparthotel Edinburgh with 146 rooms in central Edinburgh, Scotland. The total transaction value amounts to approximately MGBP 40.5 including transfer tax and will be financed by cash and existing credit facilities. The tenant is Adagio Aparthotels and Pandox expects the hotel to contribute approximately MGBP 2.2 in net operating income per year in a normalised market. The acquisition is closed and accessed per 21 December 2021. The hotel is reported under the business segment Property Management.
“We are very pleased to acquire Adagio Aparthotel Edinburgh. It is an attractive hotel property in an exciting segment in a dynamic and expanding city. The hotel is strategically and centrally located in one of the most attractive hotel markets in the UK with well-diversified demand and very good RevPAR levels. The acquisition provides exposure towards the extended stay segment, which we hope will grow over time as part of our portfolio”, says Liia Nõu, CEO of Pandox.
The transaction is made in form of acquisition of assets and liabilities, including the property and an existing revenue-based lease with minimum guaranteed rent with a remaining term of 15 years. The hotel property also has four additional small tenants. The seller is MAS PLC.
Adagio Aparthotel is a strategically located extended stay hotel with 146 generous rooms with high standard in the heart of Edinburgh’s historical center close to the central station. The hotel’s central location makes it attractive for both business and leisure travelers. The hotel property, which is in very good condition, was built in 2016 as part of a comprehensive city development project where the city of Edinburgh successfully refined unused grounds in its historical center.
Edinburgh has a population of approximately 500,000 and it is the capital of Scotland. The city is an attractive destination with a well-developed cultural life, a well-renowned university and a strong business sector centered on banking and insurance, which gives a good mix of demand from both the business and leisure segment. Edinburgh has, together with London, the highest RevPAR in the UK.
FOR MORE INFORMATION, PLEASE CONTACT:
Liia Nõu, CEO, +46 (0) 702 37 44 04
Anneli Lindblom, CFO, +46 (0) 765 93 84 00
Anders Berg, Head of Communications and IR, +46 (0) 760 95 19 40
The information was submitted for publication, through the agency of the contact persons set out above, at 17:15 CET on 21 December 2021.
About Pandox
Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox’s hotel property portfolio currently comprises 157 hotels with approximately 35,500 hotel rooms in 15 countries. Pandox’s business is organised into Property management, which comprises hotel properties leased on a long-term basis to market leading hotel operators, and Operator activities, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company’s B shares are listed on Nasdaq Stockholm. www.pandox.se
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