Will the Pandox AB €1.7 Billion acquisition of Dalata Hotel Group transforms Europe’s hotel market? What to know

Pandox AB (publ) has officially completed its €1.7 billion acquisition of Dalata Hotel Group plc, marking a major expansion in the company’s footprint across the UK and Ireland. The deal, executed through its subsidiary Pandox Ireland Tuck Limited, follows the final delisting of Dalata shares from Euronext Dublin and the London Stock Exchange on November 10, 2025.

This strategic acquisition, carried out in partnership with Eiendomsspar AS, reinforces Pandox’s position as one of Europe’s leading hotel property owners, with a focus on high-quality, full-service hotels in prime locations.

Dalata Hotel Group Officially Delists After Acquisition Completion

Dalata Hotel Group’s shares were formally delisted at 7:00 a.m. on Monday, following the completion of a court-sanctioned scheme of arrangement under Irish law. This marks the end of Dalata’s tenure as a publicly traded entity.

According to Pandox’s press release, the acquisition was structured through Pandox Ireland Tuck Limited, a newly established acquisition vehicle jointly owned by Pandox (91.2%) and Eiendomsspar (8.8%). Financial advisors Rothschild & Co, Berenberg, and Davy played key roles in facilitating the transaction.

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CEO Liia Nõu: “A Value-Creating Transaction in Europe’s Dynamic Hotel Market”

Pandox CEO Liia Nõu emphasized that the Dalata acquisition is a cornerstone for the company’s long-term strategy, stating:

“Through the acquisition of Dalata, we reinforce our position as the leading hotel property owner in Europe. The acquired hotels are of high quality, contribute immediately to earnings, and deepen our market presence in the UK and Ireland.”

The move also highlights Pandox’s ability to execute complex international transactions with strong local partners, especially in competitive hospitality markets like Dublin, London, Manchester, and Edinburgh.

Financial Impact: €1.2 Billion Net Transaction Value After Scandic Divestment

The total transaction value stands at €1.7 billion, which includes a €1.4 billion purchase price and €300 million in net debt. However, after the expected divestment of hotel operations to Scandic Hotel Group, the net value reduces to €1.2 billion (SEK 13.3 billion).

The deal is set to boost Pandox’s rental income by MSEK 1,200 annually and increase cash earnings by approximately MSEK 450, translating to an earnings increase of over 20% per share.

Pandox will retain 31 investment properties valued at MSEK 16,700, representing a yield of 6.95%. These assets will be operated by Scandic under long-term, revenue-based leases with guaranteed minimum rents, ensuring stable and predictable cash flow.

Dalata’s Portfolio: 31 Premium Hotels Across the UK and Ireland

Dalata’s portfolio includes 31 high-quality hotels with a total of 6,626 rooms, primarily operating under the Clayton and Maldron brands.

Key properties include:

• Clayton Hotel Ballsbridge, Dublin
• Maldron Hotel Sandy Road, Galway
• Clayton Hotel Chiswick, London
• Maldron Hotel Belfast City
• Clayton Hotel Leeds

These assets are strategically located near transport hubs, business centers, and leisure destinations, catering to both international and domestic demand.

Strategic Benefits: Market Expansion and Value Creation

Through this acquisition, Pandox:

• Expands its portfolio to 193 hotel properties, with 39 in the UK and 24 in Ireland.
• Increases portfolio value from SEK 76 billion to SEK 93 billion.
• Strengthens its presence in Europe’s fifth-largest hotel market, serving a population of roughly 70 million.
• Aligns with Pandox’s sustainability goals by adding hotels with high technical and environmental standards.

The acquisition also positions Pandox for future value-enhancing investments, particularly in Dublin and Edinburgh, where ongoing development projects are expected to complete by 2027.

Pandox’s Financial Outlook: Stronger Balance Sheet, Growing Returns

Despite short-term non-recurring acquisition costs of €70 million, Pandox anticipates long-term profitability from the Dalata integration. The company’s loan-to-value ratio is projected to stabilize at 52% post-divestment to Scandic, comfortably within its financial policy of 45–60%.

Analysts expect the acquisition to enhance Pandox’s revenue diversification and earnings stability, reinforcing its reputation as a core real estate operator in Europe’s hospitality sector.

FAQ

Q1: What did Pandox AB acquire?
Pandox AB acquired Dalata Hotel Group plc, one of Ireland’s leading hospitality operators, in a €1.7 billion transaction completed in November 2025.

Q2: Why was Dalata delisted from the stock exchange?
Dalata’s shares were delisted from Euronext Dublin and the London Stock Exchange following its acquisition by Pandox Ireland Tuck Limited, a wholly-owned subsidiary of Pandox AB.

Q3: How does this acquisition benefit Pandox AB?
The deal expands Pandox’s presence in the UK and Ireland, increases its portfolio value to SEK 93 billion, and boosts annual cash earnings by 20%.

Q4: What hotels are included in the Dalata acquisition?
Pandox retains 31 high-end hotels with 6,626 rooms across Ireland and the UK, including flagship properties like Clayton Hotel Ballsbridge and Maldron Hotel Belfast City.

Q5: What role does Scandic Hotel Group play in the transaction?
Scandic will acquire Dalata’s operating platform for €500 million and manage all hotels under revenue-based leases with Pandox, ensuring consistent profitability.

Q6: How was the acquisition financed?
Pandox financed the deal through a mix of acquisition loans from DNB Carnegie (€1.165 billion), existing credit facilities, and cash reserves.

Q7: What is the expected financial impact on Pandox shareholders?
The acquisition is projected to raise earnings per share by SEK 2.30 and create a value addition of SEK 15 per share, driven by new revenue streams.

Q8: What are Pandox’s future plans post-acquisition?
Pandox aims to collaborate with Scandic to enhance hotel performance, complete ongoing expansion projects in Dublin and Edinburgh, and pursue further value-driven acquisitions across Europe.