HELLO and welcome to the PM Business Briefing, as Swedish hotels giant Pandox has entered into an agreement to acquire a Scottish hotel.
The deal involves the 146-room Adagio Aparthotel in Edinburgh, with the total transaction value amounting to around £40.5m including transfer tax and will be financed by cash and existing credit facilities.
Stockholm-based Pandox expects the hotel to contribute about £2.2m in net operating income per year in a normalised market.
Liia Nõu, chief executive of Pandox, said: “We are very pleased to acquire Adagio Aparthotel Edinburgh. It is an attractive hotel property in an exciting segment in a dynamic and expanding city.
“The hotel is strategically and centrally located in one of the most attractive hotel markets in the UK with well-diversified demand and very good RevPAR levels. The acquisition provides exposure towards the extended stay segment, which we hope will grow over time as part of our portfolio.”
The transaction is made in form of acquisition of assets and liabilities, including the property and an existing revenue-based lease with minimum guaranteed rent with a remaining term of 15 years, Pandox said.
The seller is MAS PLC. Adagio Aparthotel is a described as strategically located extended stay hotel in the Old Town close to Waverley Station.
Pandox’s hotel property portfolio consists of 157 hotels with 35,000 hotel rooms in 15 countries.
Tesco comes out ahead in battle for festive spending
Tesco regained its highest share of UK supermarket spending in nearly four years after outperforming rivals in the key festive period.
Latest industry data from research group Kantar show that Tesco’s grocery sales during the 12 weeks to December 26 fell by 0.9 per cent versus the same period in 2020, when many areas in the UK faced Covid restrictions that boosted food sales. On a two-year basis, Tesco’s sales were up 10.1%.