Pandox to acquire 18 German hotels for €400m

Pandox has agreed to acquire 18 hotels with around 3,415 rooms from Leopard Group in Germany, for around €400m.

The company has also entered 25-year revenue-based lease agreements with Fattal Hotels for the properties.

Pandox will acquire the hotels with its shareholder Eiendomsspa. The former will own a 94.9% stake in the properties, while the latter will hold the remaining 5.1% interest.

The hotels are located in 12 German cities, including Frankfurt, Düsseldorf, Hannover, Hamburg and Mönchengladbach.

Pandox CEO Anders Nissen said: "The acquisition fulfils all of Pandox’s strategic criteria as regards size, city, location, market position and profitability, and strengthens our position on the important German market.

"The transaction is also completely in line with Pandox’s business model, which is based on long-term lease agreements."

The hotels include the 449-room Leonardo Royal Frankfurt, the 295-room Holiday Inn Frankfurt Airport North, the 253-room Leonardo Royal Düsseldorf Königsallee, and the 213-room Leonardo Hannover Airport hotel.

Fattal Hotels CEO David Fattal said: "My company and I feel privileged that Pandox has decided to make a most significant investment in our hotels and buy 18 hotels in Germany under a lease agreement with Leonardo Hotels."

The deal is expected to be completed by the end of the year, subject to approval by the German authorities, and the satisfaction of all other conditions.

Image: Leonardo Royal Hotel Frankfurt. Photo: courtesy of Epizentrum.