Grape Hospitality has entered into an agreement with Pandox to sell two hotel properties including operations in The Hague (the Netherlands) and Hannover (Germany) with a total of 421 rooms. The total transaction value amounts to approximately MEUR 83, excluding minority. The hotels will continue to be managed by Grape Hospitality through a management agreement with Pandox and under the existing Novotel brand. The acquisition is expected to close during the fourth quarter 2019.
“We are glad to have improved the performance of these two hotels over the last three years and very proud to sell them to Pandox today, one of the key hotel investors in Europe. Grape Hospitality will continue to operate these two hotels with Pandox under a management agreement. With this new contract, Grape Hospitality strengthens its position as a value provider in hotel’s management in Europe”, says Frédéric Josenhans, CEO of Grape Hospitality.
“The acquisition contributes to a further geographical and brand diversification of Pandox’s portfolio. Novotel Den Haag World Forum has a strong location in a city with well-diversified demand from the business, meeting and leisure segments, including tangible and growing international demand. Novotel Hannover is mainly driven by domestic German demand from business and meetings. Both the Hague and Hannover are strong congress and event destinations. Furthermore, the hotels are well-invested and offers good growth potential”, says Anders Nissen, CEO of Pandox.
|Hotel||City||Population in city area (*)||Location||Number of rooms|
|Novotel Den Haag World Forum||The Hague||520 000||City/congress||216|
|Novotel Hannover||Hannover||520 000||City/congress||205|
(*) CBS Statistics Netherlands, Statistisches Bundesamt
The transaction is made by sale of shares in companies. The underlying asset value is MEUR 83 on a debt free basis. The sold hotel portfolio has a yield of approximately 6.5 percent, before transaction costs. The purchaser is Pandox, a pan-European hotel investor.
The sale is expected to close in the fourth quarter 2019, provided that all conditions in the share transfer agreement have been fulfilled.