Pandox AB has successfully completed the acquisition of Dalata Hotel Group plc, as announced on November 7, 2025. This strategic move aims to bolster Pandox’s position as Europe’s leading hotel property owner.
Impact of the Acquisition on Financial Performance
The total transaction value is approximately €1.7 billion, with a purchase price around €1.4 billion and Dalata’s net debt estimated at €300 million. Following an expected divestment to Scandic Hotel Group, anticipated in the latter half of 2025, the adjusted transaction value will be about €1.2 billion.
Projected Financial Benefits
- Estimated increase in rental income: approximately MSEK 1,200.
- Projected annual cash earnings increase: approximately MSEK 450.
- Expected earnings growth per share: €2.30, reflecting over a 20% increase on a rolling twelve-month basis.
Details of the Hotel Portfolio
Pandox will acquire 31 hotel properties through this deal, valued collectively at approximately MSEK 16,700. These hotels will add an average weighted property yield of 6.95% to Pandox’s business segment Leases, enhancing value creation significantly. The properties are predominantly located in Ireland and the UK, regions that represent major hotel markets in Europe.
Overview of Acquired Properties
The properties consist of full-service hotels primarily operating under the Clayton and Maldron brands, totaling 6,626 rooms. The hotels are strategically placed in high-demand areas, ensuring strong occupancy rates driven by both international and domestic travelers.
| Country | City | Rooms | Ownership |
|---|---|---|---|
| Ireland | Dublin | 1,424 | Freehold |
| Ireland | Galway | 360 | Freehold |
| Ireland | Cork | 373 | Freehold |
| UK | Belfast | 407 | Freehold |
| UK | London | 510 | Leasehold |
Strategic Goals of the Acquisition
This acquisition aligns with Pandox’s strategy to enhance its earnings and market position. The continued partnership with Scandic as an operating partner will facilitate effective management and growth of the hotel properties. Over time, this collaboration is expected to create additional value and market opportunities for both companies.
Future Developments
Pandox has ongoing projects, including a conversion of an office building into a hotel in Edinburgh, expected to add 172 rooms, and an extension of 115 rooms at the Clayton Cardiff Lane in Dublin, projected for completion between 2026 and 2027.
Overall, the acquisition of Dalata positions Pandox to capitalize on the growing demand in key European markets, ensuring robust long-term growth and profitability.
