Swedish hotel investor Pandox has agreed to acquire the Radisson Blu Hotel in Glasgow for SEK455m (£39m) from Azure Hotels, a privately owned European hotel investor.
The deal reflects a yield of around 7% and will be financed by a new bank loan and existing credit facilities.
The transaction, comprising an acquisition of a combination of shares (property) and assets and liabilities (hotel operation assets) from an institutional investor, is expected to complete during Q4 2018.
The 247-room Scottish hotel is expected to generate the equivalent of around SEK150m in revenue and SEK20m in cash earnings on an annualised basis. It is operated under a management contract with Radisson Hospitality Group.
Cushman & Wakefield advised Pandox on the deal, while Azure dealt direct.
Anders Nissen, chief executive of Pandox, said: “The acquisition of Radisson Blu Glasgow is industrially sound and meets all of Pandox’s acquisition criteria.
“The hotel is a full-service hotel in the premium segment with an attractive central location and a strong market position with demand from all segments. With the acquisition of Radisson Blu Glasgow, Pandox continues its expansion in the UK with yet another profitable hotel.”
The hotel also has 15 conference rooms, pool and gym facilities and an F&B offering. Azure had bought the hotel in 2012 from administrators to St Argyle Street for around £28m.
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