Hotel property company Pandox has acquired and taken over Best Western Hotel Fridhemsplan in central Stockholm, according to a press release.
The total acquisition price, including a major investment program, amounts to approximately SEK 400 million with an expected stabilized yield of approximately 7 percent.
”"We are pleased to have made our first acquisition in Sweden in many years. The hotel property has a strong location from a leisure and business perspective and has great development potential. We look forward to creating a modern and inspiring hotel product together with a new tenant and increasing the value of the hotel property," comments Liia Nõu, CEO of Pandox, according to the press release.
The hotel will be operated under a fixed lease agreement with the current operator in 2023, then renovated and reopened in the second quarter of 2024 with a new concept.
In connection with this, a new lease agreement with a new hotel operator will come into effect.
The acquisition will be reported under the property management business segment and initially financed by cash and existing credit facilities, it said.
Source: Dagens Industri
