Scandinavian hotel investment group Pandox reported total revenues up 5% in the third quarter of 2025, as it plans for significant further earnings growth.
Group CEO Liia Nou reflected on a positive performance through the summer across Europe, helped by a strong calendar of events, which helped boost leisure travel volumes. Across Europe, occupancy improved by 1% to 77%, while average room rates were up 2%.
Strong performance in Scandinavian markets
Denmark was the standout market, where revpar was up 14% across the country. In Copenhagen, room rates were up 17%, with demand boosted by visitors to a series of Ed Sheehan concerts in the city. Norway, saw strong demand, sending revpar up 9%, ahead of Sweden at 5%. In contrast, revpar fell in Germany by 6%, with a lower count of trade fairs, which are a vital driver of German hotel demand.
For Pandox, the big opportunities come from its acquisition of the Dalata Hotel Group, which is proceeding through regulatory stages, following acceptance of the offer. Pandox is working with financial partner Eiendomsspar to complete the transaction later this year.
The Dalata business operates 56 hotels, of which the company owns 31. Of the balance, 22 run under lease agreements with two running via management agreements. Scandic Hotels has been brought in as a partner to the acquisition, and will take on the operations of the hotels, signing new lease agreements for the 31 owned properties.
The company continues to grow its portfolio with opportunistic acquisitions of individual hotels. In September, it completed the purchase of the Elite Hotel Frost in Kiruna, in a SEK347 million deal. The newly built hotel came with a 15 year lease deal signed by operator Elite Hotels, agreed on a revenue-linked payment with a minimum guarantee.
The hotel was bought prior to completion and opening, having been developed by the local Kiruna municipality. The authority decided to sell the asset, to release the value from it for use elsewhere. The destination is famous for being the location of a major iron ore mine, and the geology of the locality forced the municipality to physically relocate the centre of the town in recent years.
Working the hotel portfolio
In Germany, Pandox also picked up the Pullman Cologne Hotel. The EUR66 million acquisition came with a lease agreement in place featuring AccorInvest as the tenant. The 275 room hotel was sold by Art-Invest Real Estate, on behalf of one of its institutional hotel funds. For Pandox, the acquisition has strategic merit, as the business already owns two Leonardo branded hotels, and the Radisson Blu hotel in the city.
Pandox continues to invest in upgrading existing hotel assets. In Brussels, Belgium it is currently completing an extension at the DoubleTree by Hilton Brussels City, with additional rooms ready in early 2026. And in Glasgow, the Radisson Blu hotel will soon benefit from a refurbishment that includes remodelling the property’s bar and restaurant.
