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Pandox AB has officially completed its €1.7bn (£1.46bn) acquisition of Dalata Hotel Group, deepening its presence in the UK and Ireland and adding 31 hotels to its property portfolio.
The transaction includes Dalata’s entire business and involves a separation of hotel ownership and operations. Pandox will retain the freehold properties, while Scandic Hotels Group is expected to acquire the operating platform of 56 hotels for €500m (£439m) in the second half of 2026.
According to Pandox chief executive Liia Nõu, the deal “reinforces our position as the leading hotel property owner in Europe” and “lays the foundation for further value creation over time”.
The acquired hotels are predominantly full-service properties in the upper market segment, with 6,626 rooms across 21 sites in Ireland and 10 in the UK. The hotels, operating mainly under the Clayton and Maldron brands, are located in major cities including Dublin, London, Edinburgh, Manchester and Leeds.
The deal was made through a consortium comprising Pandox and Eiendomsspar, with ownership interests of 91.2% and 8.8% respectively. It was financed through an acquisition facility from DNB Carnegie and existing credit lines.
Following the expected divestment to Scandic, the transaction value will amount to €1.2bn (£1.05bn) – around SEK 13.3bn. The 31 retained investment properties have an estimated value of SEK 16.7bn (£1.33bn), representing an average yield of 6.95%.
Pandox expects annual rental income to rise by about SEK 1.2bn (£960m) and cash earnings by around SEK 450m (£36m), an increase of more than 20% on a rolling twelve-month basis to 30 September.
Under the new structure, Scandic will operate all 56 Dalata hotels under management agreements until the separation is completed. The 31 Pandox-owned hotels will then transfer to long-term revenue-based leases with minimum guarantees.
Pandox said the acquisition will raise the total value of its portfolio from SEK 76bn (£6bn) to about SEK 93bn (£7.4bn), with 193 hotel properties in total. Its loan-to-value ratio is expected to settle at around 52% after the divestment, within its policy range of 45 to 60%.
The company said it expects limited earnings contributions in the fourth quarter of 2025, due to non-recurring acquisition and separation costs of about €70m (£61.4m).
