Pandox has completed the acquisition of three aparthotels with a total of 503 rooms in central London for a total transaction value of £230 million.
The properties are expected to contribute around £34 million in revenues and approximately £17 million in net operating income, on an annualised basis. The hotels are branded Residence Inn by Marriott and are operated by Axiom Hospitality under a management agreement. The acquisition has been financed by available cash funds and a new green bank loan.
What they said
Liia Nõu, CEO of Pandox: "We are happy to have acquired three well-positioned freehold aparthotels in strong locations in central London, thereby increasing our exposure towards the attractive ‘extended-stay’ segment. The hotels are highly profitable, and the hotel products are well established in the market with strong distribution via Marriott International, which becomes a new cooperation partner to us. The hotel properties are of high technical and environmental standard and contribute positively to the overall quality of our hotel property portfolio. Through the acquisition, we also increase our already strong hotel operating partnership with Axiom Hospitality to a total of eight hotels in the UK."