UK: Hotel property owner Pandox has completed the acquisition of three extended stay hotels comprising 503 rooms in central London for £230 million.
The portfolio includes three Residence Inn by Marriott hotels located in Kensington, London Bridge and Tower Bridge. All three are operated by Axiom Hospitality under a management agreement.
Initially, the hotels are expected to contribute approximately £34 million in revenues and approximately £17 million in net operating income.
The acquisition has been financed by available cash funds and a new green bank loan, enabled by the properties’ favourable energy rating (A-B). The loan is the first of its kind for Pandox.
Liia Nõu, CEO of Pandox, said: “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,” she added.
