Pandox acquires Norgani Hotels AS
PRESS RELEASE, 24 August 2010
Pandox acquires Norgani Hotels AS
- establish Europe's leading hotel property company
Swedish-based hotel property company Pandox AB has reached an agreement, with financial support from its owners, to acquire Norgani Hotels AS, Norway. The acquisition price is NOK 8.3 bn. (EUR 1 bn.) and is conditional on funding and the approval of competition regulators. Norgani's portfolio consists of 73 hotel properties and one conference center (Helsinki) located in Sweden, Finland, Norway and Denmark, with a total of 12,900 rooms.
After this acquisition, Pandox will be the leading specialised hotel property company in Europe in terms of geographical diversity, number of hotels and brands.
Pandox's portfolio
The value of Pandox's hotel property portfolio, will after the after acquisition, be EUR 2.3 bn. Estimated rental revenues are EUR 185 m pro forma with cash flow of EUR 75 m.
Pandox's hotel property portfolio will include 119 hotel properties with 24,000 rooms, nine operational businesses and one conference centre (Helsinki). There will be a total of 15 brands in the portfolio.
The majority of hotels are located in growing and dynamic city locations, near airports or close to exhibition and conference centres. The hotel offerings are mainly in the profitable upper-middle and premium segments.
Geographical diversity
Pandox will be running its business in ten countries: Sweden, Finland, Norway, Denmark, Germany, Belgium, Switzerland, the UK, Canada and the Bahamas. The company will be active in a total of 60 locations.
Revenues will be sourced as follows, Sweden with 49%, Finland with 13%, Norway with 11% and Denmark with 6%. International revenues are mainly sourced from Belgium, with 7.5%, Germany with 6%-plus, Canada with 3%, and the UK, 2%.
There is a good overall balance in the revenue structure, with 53% sourced from locations that largely have stable domestic demand such as Sweden's regional and university cities. The remaining 47% are sourced from international locations that have greater dynamics and potential.
The Stockholm region will be the largest city with ownership of 20 hotels, including the Hilton Stockholm Slussen, the Scandic Malmen, Hasselbacken and Park, and the Radisson Blu Arlandia. Other major locations include Helsinki, Copenhagen and Gothenburg.
The primary locations of revenue sources outside Scandinavia are Brussels, Montréal, Berlin and London.
"Pandox continues to play an active role in restructuring the hotel property market. We feel humbled and inspired to get the opportunity to establish ourselves as one of the big players in Europe," commented Anders Nissen, CEO of Pandox.
"Getting started on development work, hotel by hotel, is a priority and we're looking forward to strengthening our contact interfaces with old and new partners."
Several of the hotels in Norgani's portfolio need active measures such as investment, revised lease structures and product development. Pandox estimates the cost of this work at EUR 125 m.
Lease structures
The majority of revenues, 88%, come from variable lease agreements relating to hotel operator sales, while the remaining 12% comes from own operations.
Leases are structured so Pandox benefits from market growth and development work in hotels, while risk are limited through guarantee levels.
Multi-brand portfolio
The hotels in Pandox portfolio will be marketed by 15 well-known brands and a number of independent web-based distribution channels. The largest will be Scandic, with 45%. Choice, with its three brands of Clarion, Quality and Comfort, represents just over 13% of revenues, while the Hilton share is nearly 12%. Other brands include InterContinental, Radisson Blu, Crowne Plaza, Hyatt, Holiday Inn, Elite, First, Rica, Ibis and Best Western.
The multi-brand portfolio will continue to develop Pandox's unique network and skills in the hotel sector.
Pandox own hotel operations
Pandox's business model is based on creating the best local conditions, hotel by hotel. This means that some hotels are operated by Pandox, considered a natural business segment for a specialised hotel property company. At present, Pandox operates nine hotels located in Belgium, Germany, Canada and the Bahamas. This operation has estimated sales of EUR 115 m this year, providing EBITDA of over EUR 20 m.
For more information, please contact:
Anders Nissen
CEO, Pandox AB
+46 (0)708 46 02 02
anders.nissen@pandox.se
Liia Nõu
CFO, Pandox AB
+46 (0)70 237 44 04
liia.nou@pandox.se
Pandox is the leading player in the hotel property market in Europe regarding geographic area, number of hotels and brands. The portfolio consists of 119 hotels, nine operational businesses, more than 24,000 rooms located in Sweden, Finland, Norway, Denmark, Germany, Belgium, the UK, Switzerland, the Bahamas and Canada. Pandox's hotels operate through differing business structures under well-recognised brands such as Scandic, Hilton, InterContinental, Hyatt, Radisson Blu, Crowne Plaza, Holiday Inn, Clarion, Quality, Elite, First, Rica, Ibis, Best Western or through independent distribution channels. Pandox is owned by the Norwegian companies
Pandox hotel portfolio - August 2010
Sorted by country.
| Country | Hotel | Partner | City | No. rooms |
| Bahamas | Pelican Bay at Lucaya | Private | Bahamas | 184 |
| Belgium | Crowne Plaza Antwerpen | InterContinental Hotels | Antwerp | 264 |
| Belgium | Crowne Plaza Brussels City | InterContinental Hotels | Brussels | 354 |
| Belgium | Hilton Brussels City | Hilton | Brussels | 283 |
| Belgium | Holiday Inn Brussels Airport | InterContinental Hotels | Brussels | 310 |
| Belgium | Hotel Bloom! | Pandox | Brussels | 305 |
| Belgium | Scandic Hotel Antwerpen | Scandic | Antwerp | 204 |
| Belgium | Scandic Hotel Grand Place | Scandic | Brussels | 100 |
| Canada | Hyatt Regency Montreal | Hyatt | Montreal | 605 |
| Canada | Intercontinental Montreal | InterContinental Hotels | Montreal | 357 |
| Denmark | Clarion Collection Hotel 27 | Choice | Copenhagen | 200 |
| Denmark | Clarion Collection Hotel Mayfair | Choice | Copenhagen | 105 |
| Denmark | Comfort Hotel Europa | Choice | Copenhagen | 230 |
| Denmark | Comfort Hotel Excelsior | Choice | Copenhagen | 99 |
| Denmark | Scandic Hotel Copenhagen | Scandic | Copenhagen | 484 |
| Finland | Airport Hotel Bonus Inn | Private | Vantaa | 211 |
| Finland | Comfort Hotel Pilotti | Private | Vantaa | 112 |
| Finland | Hilton Helsinki Kalastajatorppa | Scandic/Hilton | Helsinki | 238 |
| Finland | Hilton Helsinki Strand | Scandic/Hilton | Helsinki | 192 |
| Finland | Hotel Korpilampi | Private | Espoo | 150 |
| Finland | Rantasipi Imatran Valtionhotelli | Restel | Imatra | 135 |
| Finland | Scandic Continental | Scandic | Helsinki | 512 |
| Finland | Scandic Espoo | Scandic | Espoo | 96 |
| Finland | Scandic Grand Marina | Scandic | Helsinki | 462 |
| Finland | Scandic Jyväskylä | Scandic | Jyväskylä | 150 |
| Finland | Scandic Kajanus | Scandic | Kajaani | 191 |
| Finland | Scandic Kuopio | Scandic | Kuopio | 137 |
| Finland | Scandic Luosto | Scandic | Luosto | 59 |
| Finland | Scandic Rosendahl | Scandic | Tampere | 213 |
| Finland | Scandic Tampere City | Scandic | Tampere | 263 |
| Germany | Hilton Bremen | Hilton | Bremen | 235 |
| Germany | Hilton Dortmund | Hilton | Dortmund | 190 |
| Germany | Hotel Berlin, Berlin | Pandox | Berlin | 701 |
| Germany | Scandic Lübeck | Scandic | Lübeck | 158 |
| Norway | Clarion Collection Arcticus | Choice | Harstad | 75 |
| Norway | Clarion Collection Hotel Bastion | Choice | Oslo | 99 |
| Norway | Comfort Hotel Børsparken | Choice | Oslo | 198 |
| Norway | Comfort Hotel Holberg | Choice | Bergen | 140 |
| Norway | Quality Hotel & Resort Fagernes | Choice | Fagernes | 139 |
| Norway | Quality Hotel & Resort Hafjell | Choice | Øyer | 210 |
| Norway | Quality Hotel & Resort Kristiansand | Choice | Kristiansand | 210 |
| Norway | Quality Hotel Alexandra | Choice | Molde | 163 |
| Norway | Radisson Blu Hotel Bodø | Rezidor | Bodø | 191 |
| Norway | Radisson Blu Lillehammer Hotel | Private | Lillehammer | 303 |
| Norway | Rica Hotel Bodø | Rica | Bodø | 113 |
| Norway | Rica Hotell Hamar | Rica | Hamar | 176 |
| Norway | Scandic Bergen Airport | Scandic | Bergen | 197 |
| Norway | Scandic KNA | Scandic | Oslo | 189 |
| Sweden | Best Western Mora Hotell & Spa | Private | Mora | 135 |
| Sweden | Best Western Royal Corner | Private | Växjö | 158 |
| Sweden | Clarion Grand Hotel Helsingborg | Choice | Helsingborg | 164 |
| Sweden | Clarion Grand Hotel Östersund | Choice | Östersund | 176 |
| Sweden | Clarion Plaza Hotel Karlstad | Choice | Karlstad | 131 |
| Sweden | Elite Park Avenue Göteborg | Elite Hotels | Gothenburg | 317 |
| Sweden | Elite Stora Hotellet Jönköping | Elite Hotels | Jönköping | 135 |
| Sweden | First Hotel Grand Borås | First Hotels | Borås | 158 |
| Sweden | First Hotel Linköping | First Hotels | Linköping | 133 |
| Sweden | First Hotel Mårtenson | First Hotels | Halmstad | 103 |
| Sweden | First Hotel Royal Star | Private | Stockholm | 103 |
| Sweden | Hilton Stockholm Slussen | Hilton | Stockholm | 289 |
| Sweden | Ibis Stockholm Syd | Accor | Stockholm | 190 |
| Sweden | Mr Chip, Kista | Private | Stockholm | 150 |
| Sweden | Quality Hotel Ekoxen | Choice | Linköping | 190 |
| Sweden | Quality Hotel Grand Kristianstad | Choice | Kristianstad | 149 |
| Sweden | Quality Hotel Luleå | Choice | Luleå | 209 |
| Sweden | Quality Hotel Nacka | Choice | Stockholm | 164 |
| Sweden | Quality Hotel Park Södertälje | Choice | Södertälje | 157 |
| Sweden | Quality Hotel Prins Phillip | Choice | Stockholm | 201 |
| Sweden | Quality Hotel Prisma | Choice | Skövde | 107 |
| Sweden | Quality Hotel Winn, Göteborg | Choice | Gothenburg | 121 |
| Sweden | Radisson Blu Arlandia | Rezidor | Stockholm | 335 |
| Sweden | Radisson Blu Hotel, Linkoping | Rezidor | Linköping | 91 |
| Sweden | Radisson Blu Malmö | Rezidor | Malmö | 229 |
| Sweden | Scandic Hasselbacken | Scandic | Stockholm | 112 |
| Sweden | Scandic Hotel Alvik | Scandic | Stockholm | 325 |
| Sweden | Scandic Hotel Backadal | Scandic | Gothenburg | 232 |
| Sweden | Scandic Hotel Billingen | Scandic | Skövde | 107 |
| Sweden | Scandic Hotel Bollnäs | Scandic | Bollnäs | 111 |
| Sweden | Scandic Hotel Bromma | Scandic | Stockholm | 144 |
| Sweden | Scandic Hotel Crown Göteborg | Scandic | Gothenburg | 338 |
| Sweden | Scandic Hotel Elmia | Scandic | Jönköping | 220 |
| Sweden | Scandic Hotel Ferrum | Scandic | Kiruna | 170 |
| Sweden | Scandic Hotel Gävle Väst | Scandic | Gävle | 201 |
| Sweden | Scandic Hotel Hallandia | Scandic | Halmstad | 154 |
| Sweden | Scandic Hotel Helsingborg Nord | Scandic | Helsingborg | 237 |
| Sweden | Scandic Hotel Järva Krog | Scandic | Stockholm | 215 |
| Sweden | Scandic Hotel Kalmar Väst | Scandic | Kalmar | 148 |
| Sweden | Scandic Hotel Klarälven | Scandic | Karlstad | 143 |
| Sweden | Scandic Hotel Kramer | Scandic | Malmö | 113 |
| Sweden | Scandic Hotel Kungens Kurva | Scandic | Stockholm | 257 |
| Sweden | Scandic Hotel Linköping | Scandic | Linköping | 150 |
| Sweden | Scandic Hotel Luleå | Scandic | Luleå | 159 |
| Sweden | Scandic Hotel Malmen | Scandic | Stockholm | 327 |
| Sweden | Scandic Hotel Mölndal | Scandic | Gothenburg | 208 |
| Sweden | Scandic Hotel Norrköping Nord | Scandic | Norrköping | 150 |
| Sweden | Scandic Hotel Park | Scandic | Stockholm | 201 |
| Sweden | Scandic Hotel S:t Jörgen | Scandic | Malmö | 288 |
| Sweden | Scandic Hotel Segevång | Scandic | Malmö | 161 |
| Sweden | Scandic Hotel Skogshöjd Södertälje | Scandic | Södertälje | 225 |
| Sweden | Scandic Hotel Star Lund | Scandic | Lund | 196 |
| Sweden | Scandic Hotel Star Sollentuna | Scandic | Stockholm | 269 |
| Sweden | Scandic Hotel Sundsvall Nord | Scandic | Sundsvall | 159 |
| Sweden | Scandic Hotel Södertälje | Scandic | Södertälje | 131 |
| Sweden | Scandic Hotel Trollhättan Swania | Scandic | Trollhättan | 198 |
| Sweden | Scandic Hotel Umeå Syd | Scandic | Umeå | 162 |
| Sweden | Scandic Hotel Uplandia | Scandic | Uppsala | 133 |
| Sweden | Scandic Hotel Upplands-Väsby | Scandic | Stockholm | 150 |
| Sweden | Scandic Hotel Uppsala Nord | Scandic | Uppsala | 184 |
| Sweden | Scandic Hotel Winn | Scandic | Karlstad | 199 |
| Sweden | Scandic Hotel Västerås | Scandic | Västerås | 174 |
| Sweden | Scandic Hotel Växjö | Scandic | Växjö | 123 |
| Sweden | Scandic Hotel Örebro | Scandic | Örebro | 221 |
| Sweden | Scandic Hotel Örebro Väst | Scandic | Örebro | 204 |
| Sweden | Scandic Hotel Östersund | Scandic | Östersund | 129 |
| Sweden | Scandic Plaza Borås | Scandic | Borås | 135 |
| Sweden | Stadshotellet Princess Sandviken | Private | Sandviken | 84 |
| Sweden | Vildmarkshotellet Kolmården | Private | Norrköping | 213 |
| Switzerland | Radisson Blu Basel | Rezidor | Basel | 205 |
| UK | Hilton Docklands | Hilton | London | 365 |
| 119 HOTELS | 23 954 ROOMS | |||
| Finland | Marina Congress Center Linked to Scandic Grand Marina | Scandic | Helsinki | |