Hilton Belfast completes sale to Pandox for £40m

Hilton Belfast hotel has completed its sale to hotel ownership and management company Pandox AB for approximately £40m.

Pandox AB has also acquired hotel operations in central Belfast.

The hotel has 202 rooms and will be operated under a management agreement with Axiom Hospitality, subject to a franchise under the Hilton brand.

The total acquisition price, including certain targeted value increasing investments, which amounted to approximately £40m will initially be financed by cash and existing credit facilities.

The seller is a controlled affiliate of Starwood Capital Group.

According to Pandox, it expects the hotel to generate a “stabilised yield” of approximately 10%.

It said that the hotel product was upgraded through renovation of all rooms and public areas during the pandemic years and “has a strong competitive position”.

The hotel will be reported under the business segment Operator Activities. Pandox already owns Leonardo Belfast with 270 rooms in Property Management.

Liia Nõu, CEO of Pandox, said: “The hotel is well-invested with a strong strategic location in the city centre of Belfast. The UK is one of Europe’s largest and most dynamic hotel markets and Belfast is an attractive destination with a rich business life, several universities, and many attractions, which drive demand from all important segments. We will also make certain targeted value increasing investments to further improve the hotel’s position and profitability.”