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Hotel property owner Pandox has completed the acquisition of three aparthotels with a total of 503 rooms in central London for £230m.
The hotels are branded Residence Inn by Marriott and are located in Kensington, London Bridge and Tower Bridge. All three hotels are operated by Axiom Hospitality under a management agreement.
The hotel properties are modern and underwent comprehensive renovations before the pandemic, as a result of which the hotels were repositioned according to Residence Inn by Marriott’s brand standards.
The average room size is 28 square metres and there are several room configurations, all of them with a kitchen or kitchenette.
Initially, the hotels are expected to contribute approximately £34m in revenues and approximately £17m in net operating income, on an annualised basis.
Pandox already owns three hotels in the greater London area, namely Leonardo Hotel London Croydon (Leases), Hilton London Heathrow Airport T4 (Leases) and Hilton Garden Inn London Heathrow Airport (Own Operations) with a total of 1,002 rooms.
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.”
