Pandox has bought the Best Western Hotel Fridhemsplan in central Stockholm, Sweden for €36 million.
The hotel has 221 rooms and is operated under a fixed lease with a private operator. The acquisition has an expected stabilised yield of approximately 7 per cent.
During 2023 the hotel will be operated under a fixed lease with the current operator, after which it will be renovated and reopened during the second quarter 2024 with a new concept. A new lease agreement with a new operator will then come into force. The hotel will be reported under the business segment Property Management and initially be financed by liquid funds and existing credit facilities.
What they said
Liia Nõu, CEO of Pandox, said: "We are pleased to have made our first acquisition in Sweden in a long time. The hotel property has a strong location from both a leisure and business perspective with great development potential. We look forward to creating a modern and inspirational hotel product together with a new tenant, and increase the value of the hotel property.”