Pandox Acquires Two Hotels in Netherlands and Germany
Main Photo: The Novotel Den Haag World Forum
Date: October 2019
Location: The Hague, Netherlands and Hannover, Germany
Name: Both Novotel Hotels
No. of Keys: 421
Seller: Grape Hospitality, which is the owner, operator and manager of 87 hotels in 8 European countries, with over 9000 rooms operated under a franchise contract. Virtually all the hotels are under Accor brands. They have partnered up with Eurazeo to accelerate their development. Grape is headed up by Frederic Josenhans as CEO.
Buyer: Stockholm-based Pandox AB has entered into an agreement to acquire two Novotel-branded hotel properties with a total of 421 rooms in the Hague, the Netherlands, and Hannover, Germany.
The total transaction value amounts to approximately €83 million on a debt-free basis. The acquisition is being financed by existing credit facilities.
The Novotel Den Haag World Forum and the Novotel Hannover will continue to be managed by Grape Hospitality—which has managed the properties over the past three years—through a management agreement with Pandox and under the existing Novotel brand. For full-year 2020, the hotels are expected to contribute approximately €16 million in sales and approximately €5.4 million in net operating income.
The acquisition is expected to close during the fourth quarter 2019. As part of the transaction, Pandox will enter into an agreement with Eiendomsspar AS through ES Hotellus AS regarding minority ownership of 5.1 percent for the Novotel Hannover.
“The acquisition contributes to a further geographical and brand diversification of Pandox’s portfolio,” Pandox CEO Anders Nissen said in a statement. “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 offer good growth potential.”
Pandox’s hotel property portfolio currently comprises 146 hotels with approximately 32,700 hotel rooms in 15 countries.
Price: €83m
Price per Key: €197,150
THPT Comment: Pandox continue their drive forward in becoming a major force in Europe, with this relatively small deal. Grape is an interesting company with some 90 hotels under their belt.
First Seen: Hotel Management
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