Swedish hotel owner Pandox revealed it has sold off seven hotels, releasing SEK2,100 million to redeploy in the investment marketplace.
The news came as Pandox reported strong third quarter results. Lease revenues were up 37%, while ebitda increased by 30% to SEK 1,561 million. CEO Liia Nou reported that “hotel market growth continued in a turbulent world” and warned that fourth quarter results would be impacted by tough comparables from 2025. She also noted that interest costs for the group have risen in the last year.
Stabilised Assets Passed to New Owners
The hotel disposals were in two separate transactions. Five hotels in Denmark have been acquired by joint venture investment partners Alma Property Partners and Midstar AB. The properties they have taken on are four Scandic hotels, in Sluseholmen, Hvidovre, Kolding and Glostrup. A fifth property in the deal is the Motel One Copenhagen. The four Scandic branded properties have been in the Pandox portfolio since 2012.
A second deal sees Pandox moving on two more Scandic branded hotels, Scandic Hallandia and Scandic Kalmar Vast. In this case, the buyer is another Swedish group, Västerkulla Hotell Holding AB. Pandox said all seven properties were sold at prices above their current book value.
“The divestments combined are made above book value and they reflect a growing interest in hotel properties,” said CEO Nou. “They are good examples of our ability to create value through active ownership, and also reduce our debt.”
The sales have changed the balance of the Pandox portfolio, reducing its Scandinavian holdings notably. After the deals, it will own just three hotels in Denmark. However, its total portfolio remains substantial, with the group owning 191 hotels across Europe, adding up to around 42,400 rooms.
Pandox also reported on the impact of the loss of Revo Hospitality in Germany, which impacted nine hotels owned by the group and leased to Revo. Six of the hotels have been transferred into Pandox’s own operating division, and will be operated directly for the short to medium term. Three hotels remain with the official receivers of the Revo business, as discussions proceed with potential new tenants.
Busy Absorbing the Dalata Acquisition
During the last year, Pandox has seen less transaction volume than is normal for the group. But management has been busy absorbing the Dalata Hotels business, including its Maldron and Clayton branded hotels, following the takeover of that group. One recent deal, however, was the reletting of a hotel in Bodo, Norway which will see it branded by operator Strawberry. The change will take place in early 2027, after a current agreement with Radisson Hotel Group expires.
As a major hotel owner, Pandox is continually investing in its portfolio, often with renovations, repositioning or rebranding exercises to enhance the value of individual properties. Current live projects include a planned renovation at the 275 room Pullman Hotel Koln Cologne. In Brussels, the Crowne Plaza hotel is being redeveloped and extended, to create the DoubleTree by Hilton Brussels City.
