Swedish hotel property company Pandox has agreed to purchase the DoubleTree by Hilton Edinburgh City Centre hotel in Edinburgh, UK, from sellers affiliated with Starwood Capital.
The deal is valued at approximately £49 mln (€58 mln) and will be funded using cash and a new bank loan. The transaction is expected to close by the end of 2024.
The hotel will continue to be operated by Axiom Hospitality under a management agreement.
Pandox plans to review the hotel's brand strategy and operational model before the current franchise agreement expires in 2027. As Edinburgh is a thriving hotel market, Pandox sees opportunities to enhance the hotel's offerings and compete more effectively in higher-demand segments. The hotel is expected to yield over 7.5% initially, with potential for growth to around 9% through operational improvements and investments.
Liia Nõu, CEO Pandox, commented: ‘DoubleTree by Hilton Edinburgh City Centre is a nice addition to our hotel property portfolio. The hotel is performing well with potential to further develop the hotel product and increase the return over time. The cooperation with Axiom Hospitality, which will comprise nine hotels in the UK, ensures effective operations and lower operational risk.’
DoubleTree by Hilton Edinburgh City Centre is centrally located near popular attractions like the Royal Mile and Edinburgh Castle. It was renovated in 2014 and offers 138 guest rooms, conference facilities, a restaurant, a bar, and an event venue with castle views.
Pandox already owns another hotel in Edinburgh, the Aparthotel Adagio Edinburgh Royal Mile with 146 rooms.
