Pandox confirms £230m London aparthotels portfolio deal
Swedish hotel operator Pandox has finalised its acquisition of a portfolio of aparthotels in central London for £230m from Starwood Capital.
The portfolio comprises three freehold hotels in Kensington, London Bridge and at Tower Bridge, with a total of 503 rooms, branded Residence Inn by Marriott and operated by Axiom Hospitality under a management agreement.
Pandox said the hotels are projected to generate around £34m in annual revenue initially and approximately £17m in net operating income annually, with a yield exceeding 7%.
Swedish hotel operator Pandox has finalised its acquisition of a portfolio of aparthotels in central London for £230m from Starwood Capital.
The portfolio comprises three freehold hotels in Kensington, London Bridge and at Tower Bridge, with a total of 503 rooms, branded Residence Inn by Marriott and operated by Axiom Hospitality under a management agreement.
Pandox said the hotels are projected to generate around £34m in annual revenue initially and approximately £17m in net operating income annually, with a yield exceeding 7%.
The company will add the sites to a London hotel portfolio that already includes Leonardo Hotel London Croydon, Hilton London Heathrow Airport T4 and Hilton Garden Inn London Heathrow Airport.
Liia Nõu, chief executive of Pandox, said: “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 for us.
“The hotel properties are of a 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.”
CBRE and JLL acted for Starwood. A spokesperson for CBRE said: “The completion of this sale comes amid a resurgent hotel investment market, which has largely been driven by stabilising interest rates and resilient trading performance.
“The UK’s hotel investment volumes have already surpassed the entirety of 2023, and it is predicted that London will benefit from record levels of overnight visits for 2024, further signalling the strength of the sector.”
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