Swedish hospitality company Pandox has acquired three Central London aparthotels from Starwood Capital for approximately £230m.
The company has purchased the 315-bed Residence Inn by Marriott London Kensington, the 101-bed Residence Inn by Marriott London Bridge (pictured) and the 87-bed Residence Inn by Marriott Tower Bridge.
The hotels, which are operated by Axiom Hospitality under a management agreement, are expected to contribute approximately £34m in revenues and approximately £17m in net operating income on an annualised basis.
The acquisition was financed by available cash funds and a new green bank loan.
Liia Nõu, CEO of Pandox, said: “We are happy to have acquired three well-positioned freehold aparthotels in strong locations in Central London, thereby increasing our exposure towards the attractive ‘extended-stay’ segment. The hotels are highly profitable, and the hotel products are well established in the market with strong distribution via Marriott International, which becomes a new cooperation partner to us.
“The hotel properties are of high technical and environmental standard and contribute positively to the overall quality of our hotel property portfolio. Through the acquisition, we also increase our already strong hotel operating partnership with Axiom Hospitality to a total of eight hotels in the UK.”
