HVS Europe Hotel Transactions Bulletin Week Ending 6 September 2024

A summary of European hotel transactions provided by HVS

Pandox acquires DoubleTree by Hilton Edinburgh from Starwood

Swedish hotel owner Pandox has entered an agreement to acquire the four-star, 138-room DoubleTree by Hilton Edinburgh City Centre hotel in Edinburgh, Scotland, from American private equity firm Starwood Capital Group, for £49 million (£355,000 per room). The hotel is located just to the south of Edinburgh Castle, around 10-minutes’ walk from the Royal Mile. London-based operator Axiom Hospitality is set to manage the property under a management agreement. Pandox plans to evaluate the hotel’s brand strategy and operating model, with the current franchise agreement with Hilton due to expire in 2027. The hotel is expected to generate an initial yield of some 7.5%, growing to a potential 9% in the future “through active operational improvements and targeted investments”. HVS provided advisory services in relation to the transaction.

MNK Partners acquires the Premier Inn Aberdeen Airport in Scotland

French portfolio manager MNK Partners, on behalf of its pan-European fund MNK Europe+, has reportedly acquired the three-star, 100-room Premier Inn Aberdeen Airport (Dyce) hotel in Aberdeen, Scotland, for £6 million (£60,000 per room). Built in 2013, the asset is held on a long-leasehold basis until 2180. It is managed by Premier Inn Hotels under an operating lease that is set to mature in July 2038, with a break option in July 2033. A purchase at this level reportedly reflects a net initial yield of 9%. This is the eighth and final asset acquired under the MNK Europe+ fund, which has a seven-year lifetime.

Inwood Hotels acquires Five Seas Hôtel Cannes from Dona Bertarelli

Inwood Hotels, a French boutique hotel operator, has acquired the five-star, 45-room Five Seas Hotel Cannes on France’s Cote d’Azur, from Swiss billionaire Dona Bertarelli. The hotel is located just two-minutes’ walk from Cannes’ famous shorefront promenade, the Boulevard de la Croisette, and very close to the city’s Palace of Festivals and Congresses. Opened in 2011, the hotel is affiliated with Marriott’s Design Hotels, a boutique luxury collection brand with over 300 properties worldwide. This marks the third acquisition for Inwood Hotels on the Cote d’Azur, following their 2023 acquisitions of the four-star, 46-room La Malmaison in Nice, and the Impérial Garoupe in Cap d’Antibes, a 34-room five-star hotel affiliated with Relais & Châteaux. 

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