“With the divestment of DoubleTree by Hilton Montreal, we realise values and free up capital for investments with higher return potential in our home markets where we can execute hotel property development more efficiently. We have owned the hotel property since 2008 and have in stages, together with a strong team in Montreal, successfully developed the hotel product. We are happy to have reached an agreement with a strong local hotel property owner who can take the hotel property, with its challenges and opportunities, to the next level,” says Liia Nõu, CEO of Pandox.

The total gross transaction value amounts to MCAD 95 (EUR 61 million). After deduction for structural investment needs (facade) of approximately MCAD 15 (EUR 10 million), the transaction price amounts to MCAD 80, which also corresponds to the property’s book value per 31 December 2023. The transaction price reflects the hotel property’s future investment needs, the hotel operation’s estimated profitability potential, and Pandox’s limited economies of scale in operations and property management in Montreal, where we, after the divestment of InterContinental Montreal in 2023, only have one hotel property left. The hotel property is unencumbered. In 2023, the hotel’s revenue amounted to approximately MCAD 50 (EUR 32 million).

The transaction is made in form of divestment of assets and liabilities and is expected to be finalised in the second quarter of 2024, following a customary due diligence process, according to Canadian practice, where the buyer pays a deposit that is forfeited if the transaction is not completed. The buyer is a well-established hotel property owner and developer with headquarters in Montreal.

The hotel has 595 rooms and is reported in the business segment Own Operations.