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Edinburgh Adagio Aparthotel sold to Swedish investor

THE Scottish hotel sector has received a vote of confidence with the investment by a major northern European owner in a city centre hotel.

Swedish hotels giant Pandox has said it has entered into an agreement to acquire the 146-room Adagio Aparthotel in Edinburgh, with the total transaction value amounting to £40.5 million 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.


HeraldScotland:


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.”


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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 property also has four additional small tenants. The seller is MAS PLC.

Adagio Aparthotel is a described as a strategically located extended stay hotel and is close to Waverley Station.

Pandox’s hotel property portfolio consists of 157 hotels with 35,000 hotel rooms in 15 countries.

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