Pandox signs new lease agreement with Motel One for h27 in central Copenhagen
Pandox AB (publ) has signed a new lease agreement for h27 in central Copenhagen with the operator Motel One. The lease is revenue-based with a minimum guaranteed rent and a tenor of 20 years. The takeover is expected to take place in the beginning of the fourth quarter 2021. At that time the hotel property will also be reclassified to Property Management from Operator Activities.
“We are very happy to sign a new lease agreement with the well-known and highly skilled operator Motel One. The agreement is a result of Pandox's strategy and business model with active work throughout the value chain and confirms the value of the hotel property. The lease is competitive and shows that it is possible to create value even in a tougher market climate. We also warmly welcome Motel One as a new business partner”, says Liia Nõu, CEO of Pandox.
Both the revenue-based rent and the minimum rent are gradually increased over a four-year period. The hotel is leased in current condition, and Motel One bears all costs for the brand change and all opening costs. Pandox's responsibilities include roof, facade and property structure as well as major technical installations.
The hotel property that houses h27 (formerly Hotel Twentyseven) was acquired by Pandox in 2005. Pandox took over the operation of the hotel in April 2020 and began a renovation and repositioning project that was completed in June 2021. The hotel has 200 rooms and will include a restaurant and bar, meeting room and a large outdoor terrace. The hotel is centrally located in Copenhagen with walking distance to, among others, the Central Station, Rådhuspladsen and Strøget.
For more information about the hotel, please see the link below:
FOR MORE INFORMATION, PLEASE CONTACT:
Liia Nõu, CEO and acting CFO, +46 (0) 702 37 44 04
Erik Hvesser, SVP, Head of Property Management Nordics, +46 (0) 707 70 01 19
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 08:45 CEST on 1 September 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 156 hotels with approximately 35,000 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 regional hotel operators and leading international 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
About Motel One
Motel One is a Munich-based company founded in 2000 currently operating 77 hotels with 21,800 rooms in Europe. Motel One offers a unique combination of high-quality interiors, exclusive design, excellent service and outstanding city centre locations at attractive prices. www.motel-one.com