Sale of the majority stake of three Dorint Hotels to the Swedish Pandox group
The hotel properties sold are the two congress hotels Dorint Hotel at the Westfalenhallen in Dortmund with 221 rooms and Dorint Hotel at the congress hall in Augsburg with 184 rooms as well as the Dorint Hotel at the cathedral in Erfurt with 160 rooms.
"HR Group is very pleased to have Pandox AB as a strategic investor for the three hotel properties. The transaction marks a key-milestone in our company history and the start of a long-term partnership with one of the leading hotel property owners in Northern Europe. We’re delighted to continue with the operation of the three hotels and to strive for an excellent performance and guest experience with our teams. We look forward to further cooperation and to achieve mutual and continuous growth," said Ruslan Husry, CEO of HR Group.
"The acquisition is industrially sound and contributes to a further diversification of Pandox’s portfolio both geographically and brand-wise. The hotel properties are in good locations in stable domestic cities in Germany and are mainly driven by domestic demand with a good balance between the business, meeting and leisure segments. The hotels are full-service hotels in the upper mid-scale segment with good guest ratings," says Anders Nissen, CEO of Pandox.
The acquisition of the hotel properties by Pandox AB takes place through the purchase of shares in a company with an underlying real estate value of 103 million euros on a debt-free basis. The seller is the HR Group, one of the fastest growing hotel operating companies in the German-speaking area, which also remains a minority shareholder in the companies. It will continue to operate the three properties under the Dorint Hotels & Resorts brand for the long term. This is governed by revenue-based leases, which are designed to last for 20 years.