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Swedish property operator, Pandox, has acquired a hotel property in central Bath for £40m.
The hotel, which will be operated under new management as agreed with Axiom Hospitality and subject to franchising by DoubleTree by Hilton, has 176 rooms.
It is reported that the seller is a controlled affiliate of Starwood Capital Group. Pandox expects the hotel to generate a stabilised yield of approximately 7.5%.
The hotel is in direct proximity to the city’s historic core and its Roman baths. According to Pandox, the leisure segment forms an “important” part of demand through its historical heritage, theatres, museums, and cultural life.
In addition, sports, particularly rugby, as well as the university, are also drivers for demand. The city has also been identified to have a rich business life in the service sector as around 3.8 million people visit the city each year. The destination has UNESCO World Heritage status, which is said to “guarantee its long-term status as a high-quality destination”.
Furthermore, communications are good both to the nearest city and airport in Bristol, which is about 40 minutes of travel, as well as good transport links by train to London.
Liia Nõu, CEO of Pandox, said: “We are pleased to make this acquisition. The UK is a priority market for us and a hotel in Bath provides exposure to an attractive tourist destination that ranks as a top destination with both domestic and international visitors.
“The hotel is well invested and has a strong, strategic location in central Bath, attracting both leisure and business travellers. At the same time, we have clear ideas of how we can further strengthen the hotel’s position and profitability.”
She added: “We are also pleased to add Axiom Hospitality as a new business partner.”
