Northern European hotel owner Pandox has purchased the Hilton London Heathrow Airport for 拢80 mln (鈧�90 mln) from an unnamed vendor.
The hotel, located at London-Heathrow Terminal 4, has 398 rooms. Pandox executed the deal by acquiring shares in a company owned by an institutional investor. The property has a yield of 5.5%.
'Great Britain is a prioritised market and we are delighted over the acquisition of Hilton London Heathrow Airport at Europe鈥檚 largest and the third largest airport in the world,' said Anders Nissen, CEO of Pandox.
'The hotel is operated by Hilton under a long-term revenue-based lease agreement in a sub-market with high occupancy and good average rates and contributes to a further diversification of our portfolio,' he added.
The hotel is operated by Adda Hotels 鈥� a subsidiary of Hilton Worldwide Holdings 鈥� with a remaining average maturity (WAULT) of 26 years. Refurbishment works are planned in the next two years.
For 2017 the hotel is expected to contribute the equivalent of approximately SEK 50 mln (鈧�5.2 mln) in rental income and SEK 48 mln (鈧�5 mln) in net operating income, on an annualised basis.
