Backed by Bank of Ireland, Swedish group Pandox has strengthened its hotel portfolio and has embarked on an expansion across UK and Ireland.
Pandox along with Eindomsspar last year agreed to acquire the Dalata Hotel Group in a €1.4bn transaction that marks one of the most significant hotel property deals in the Irish and UK markets in recent years.
The deal, supported by a syndicated financing package that includes Bank of Ireland, will deepen the Swedish listed Pandox group’s presence across two of its most important regions.
“The acquisition of Dalata represents an important step in strengthening Pandox’s presence in the UK and Ireland, two core markets for the Group”
The acquisition brings 56 hotels and almost 12,000 rooms into the Pandox portfolio. Dalata operates primarily under the Clayton and Maldron brands, with a footprint that includes 17 hotels in Dublin, 12 in regional Ireland, 3 in Northern Ireland, 22 in the UK and 2 in Continental Europe.
Founded in 1995, Pandox has grown into one of Europe’s leading hotel property owners with 162 hotels comprising around 36,000 rooms before the Dalata purchase. The latest transaction broadens its operational scale and gives the group a substantially larger platform for long‑term value creation.
The financing was arranged by DNB Carnegie Bank as lead lender, with Bank of Ireland participating as part of the wider banking syndicate.
The Irish Bank has longstanding relationships across the hotel and property sectors and has supported a series of major transactions in the market over the past decade.
Strategic expansion
Liia Nõu, chief executive of Pandox, said the acquisition represents a significant step for the group.
“The acquisition of Dalata represents an important step in strengthening Pandox’s presence in the UK and Ireland, two core markets for the Group.
“We appreciate the support from Bank of Ireland as part of the lending syndicate, drawing on a long-standing relationship and bringing strong local market knowledge and deep expertise in the Irish hotel sector. This financing provides a solid foundation as we integrate the Dalata portfolio, and we value the opportunity to continue building on our relationship with Bank of Ireland as we develop our hotel property platform over the long term.”
With the Dalata hotels added, Pandox’s portfolio will exceed 200 properties and more than 48,000 rooms across Europe. The group sees the enlarged footprint as an opportunity to strengthen operational performance, enhance asset management initiatives and expand in markets where visitor demand has shown resilience.
Sector impact follows strong tourism recovery
The deal comes as the UK and Irish tourism sectors continue to experience a steady rebound, supported by a return of international visitors and renewed business travel.
Dublin, in particular, has faced sustained demand pressures, and the addition of Dalata’s hotels gives Pandox a leading position in one of Europe’s most stable urban hospitality markets.
Nikki Canavan, Head of Corporate Banking Ireland, confirmed that the Bank was delighted to support Pandox in the refinancing package to acquire Dalata’s assets.
“At Bank of Ireland Corporate Banking we take pride in the leading role that we play supporting pour valued customers across all sectors of the economy with their ambitions, including transformational opportunities such as this transaction.”
Greg Martin, Senior Manager, Bank of Ireland Corporate and Commercial Banking added: “Bank of Ireland is proud to support Pandox on this landmark transaction, strengthening the groups presence in the UK and Ireland. This deal reflects our long-standing commitment to the sector, and we look forward to continuing our partnership with Pandox as they execute their long-term growth strategy.”
-
Bank of Ireland is welcoming new customers every day – funding investments, working capital and expansions across multiple sectors. To learn more, click here
-
For support in challenging times, click here
-
Listen to the ThinkBusiness Podcast for business insights and inspiration. Latest episodes are here. You can also listen to the Podcast on:
-
Spotify
-
SoundCloud
-
Apple
