Pandox announces €1.4 billion cash offer for Dalata Hotel Group

STOCKHOLM - Swedish hotel property company Pandox AB announced Tuesday a recommended cash offer to acquire Irish-based Dalata Hotel Group plc for approximately €1.4 billion ($1.57 billion), expanding its footprint in Northern European hotel markets.

The acquisition will be made through Pandox Ireland Tuck Limited, a newly incorporated company that will be majority-owned by Pandox (91.5%) with Norwegian real estate company Eiendomsspar AS holding the remaining 8.5% stake.

The deal encompasses Dalata’s portfolio of 56 hotel businesses, including 31 freehold and long leasehold properties, 22 leasehold hotels, and 3 managed hotels across Ireland, the UK, Germany, and the Netherlands. Dalata’s owned hotel portfolio was independently valued at approximately €1.6 billion as of June 30.

"Dalata’s portfolio consists of well-established and highly profitable four-star hotels in strong locations, which will further expand Pandox’s footprint in several large, dynamic and growing hotel markets in Northern Europe," said Liia Nõu, CEO of Pandox, in the press release statement.

Pandox has signed a framework agreement with Scandic Hotels Group AB to operate the Dalata portfolio following completion of the acquisition. The companies have also entered into option arrangements that could lead to Scandic acquiring Dalata’s hotel operating business for an anticipated price of €500 million, while Pandox would retain the 31 freehold and long leasehold properties.

The acquisition is expected to increase Pandox’s loan-to-value ratio by approximately 9 percentage points before the anticipated divestment of hotel operations to Scandic, and by approximately 5 percentage points after the divestment.

The transaction, which will be implemented through a scheme of arrangement under Irish law, requires approval from Dalata shareholders, regulatory clearances, and sanction from the High Court of Ireland. Completion is expected in the fourth quarter of 2025.

The acquisition is fully financed through a combination of existing cash resources from Pandox and Eiendomsspar, along with a facility provided by DNB Bank ASA.

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