“The acquisition contributes to a further geographical and brand diversification of Pandox’s portfolio. Novotel Den Haag World Forum has a strong location in a city with well-diversified demand from the business, meeting and leisure segments, including tangible and growing international demand. Novotel Hannover is mainly driven by domestic German demand from business and meetings. Both the Hague and Hannover are strong congress and event destinations. Furthermore, the hotels are well-invested with positive guest reviews and offers good growth potential”, says Anders Nissen, CEO of Pandox.

“We are glad to have improved the performance of these two hotels over the last three years and very proud to sell them to Pandox today, one of the key hotel investors in Europe. Grape Hospitality will continue to operate these two hotels with Pandox under a management agreement. With this new contract, Grape Hospitality strengthens its position as a value provider in hotel's management in Europe”, says Frédéric Josenhans, CEO of Grape Hospitality.

The hotels acquired are Novotel Den Haag World Forum with 216 rooms in central The Hague and Novotel Hannover with 205 rooms in central Hannover.

The transaction is made by acquisition of shares in companies. The underlying property value is MEUR 83 on a debt free basis. The acquired hotel portfolio has a yield of approximately 6.5 percent, before transaction costs. The seller is Grape Hospitality, pan-European hotel owner and operator. As part of the transaction Pandox will enter into an agreement with Eiendomsspar AS through ES Hotellus AS regarding minority ownership of 5.1 percent for Novotel Hannover.

The acquisition is expected to close in the fourth quarter 2019, provided that all conditions in the share transfer agreement have been fulfilled.