The hotel is operated by Hilton under a revenue-based lease agreement. The purchase price amounts to around EUR 91M, and is financed by existing credit facilities. The acquisition is expected to be completed during the third quarter 2017.
“Great Britain is a prioritised market and we are delighted over the acquisition of Hilton London Heathrow Airport at Europe’s largest and the third largest airport in the world. The hotel is large, profitable and has a strong location at London-Heathrow Terminal 4, which the guests reach by a covered walkway. At the terminal swift access to London via underground is available, which makes the hotel attractive to all types of guests. The hotel is operated by Hilton under a long-term revenue-based lease agreement in a sub-market with high occupancy and good average rates and contributes to a further diversification of our portfolio,” says Anders Nissen, CEO of Pandox.
The acquisition of the hotel property is made by acquisition of shares in a company owned by an institutional investor. The hotel is operated by Adda Hotels – a subsidiary of Hilton Worldwide Holdings – under a revenue-based lease agreement with a remaining average maturity (WAULT) of 26 years where the tenant has a far-reaching responsibility for maintenance, repair and investments in the property.
Pandox Acquires Hotel at Heathrow for EUR 91M
Sweden — Pandox has entered into an agreement to acquire Hilton London Heathrow Airport. The hotel is a full-service premium hotel with 398 rooms and a strong location at London-Heathrow Terminal 4.
Maria Olsson Äärlahtmaria@nordicpropertynews.com