Pandox Strengthens European Hotel Portfolio with Dalata Acquisition
Pandox AB has officially completed the acquisition of Dalata Hotel Group, marking a major step forward in its strategy to become Europe’s leading hotel property owner. The deal, announced on November 7, 2025, adds 31 high-quality investment properties to Pandox’s portfolio, primarily in the UK and Ireland, expanding its reach in two of Europe’s most dynamic hotel markets. According to CEO Liia Nõu, this acquisition reinforces Pandox’s ability to execute complex international transactions while immediately boosting earnings and long-term value creation.
The total transaction value was approximately 1.7 billion euros, including Dalata’s net debt of 300 million euros. After an expected divestment of the hotel operating business to Scandic Hotel Group later in 2025, the net transaction value will be around 1.2 billion euros. Rental income from the acquired properties is projected to increase by roughly 1.2 billion SEK annually, with cash earnings expected to rise by approximately 450 million SEK. This corresponds to an increase of over 20 percent per share on a rolling twelve-month basis.
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Dalata’s portfolio includes 56 hotels, with 31 owned outright by Pandox, 22 under lease agreements, and 3 under management contracts. The acquisition will be structured so that Scandic takes over the operational platform of all 56 hotels, while Pandox retains ownership of the 31 key investment properties in Ireland and the UK. These retained hotels will be operated by Scandic under long-term, revenue-based leases with guaranteed minimum levels, aligning perfectly with Pandox’s core business model.
The newly acquired properties are high-end, full-service hotels totaling 6,626 rooms, averaging 214 rooms per hotel, and enjoy strong guest reviews. They complement Pandox’s existing portfolio by attracting both international leisure and business travelers, with locations in major cities such as Dublin, London, Edinburgh, and Manchester. Additionally, ongoing projects include converting an office building into a 172-room hotel in Edinburgh and expanding the Clayton Cardiff Lane in Dublin with 115 rooms, expected to be completed by 2026–2027.
Financially, the acquisition is expected to create significant value. The 31 investment properties are projected to deliver a weighted average property yield of 6.95 percent, representing value creation of approximately 3 billion SEK, or 15 SEK per share. The deal is fully financed through a combination of acquisition facilities, existing credit lines, and cash reserves, while transaction costs are estimated at 70 million euros.
By completing this acquisition, Pandox increases its total number of hotel properties to 193, with 39 in the UK and 24 in Ireland, raising the overall portfolio value from approximately 76 billion SEK to 93 billion SEK. The share of investment properties rises to 84 percent, while the loan-to-value ratio is expected to remain within the company’s financial policy range of 45–60 percent.
In short, Pandox’s acquisition of Dalata represents a strategic move to consolidate its position in Europe’s hotel market, expand high-quality property holdings, and secure long-term revenue growth, all while partnering with Scandic to optimize hotel operations. The acquisition not only strengthens Pandox’s financial standing but also reinforces its presence in key urban and leisure markets across Ireland and the UK.
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