Pandox AB has signed an agreement to acquire the Radisson Blu Hotel Tromsø, located in the heart of Tromsø, Norway. The hotel, which has 269 rooms, is currently operated under a revenue-based lease agreement with Radisson Blu.
The total transaction value is approximately NOK 750 million, and the acquisition will be financed through available funds and a new bank loan. The transaction is expected to close in the first quarter of 2025.
“We are very happy to acquire Radisson Blu Hotel Tromsø. Northern Norway is an exciting region and Tromsø is one of the strongest hotel markets in the Nordics with a high attractiveness among international visitors. The hotel has a very strong location in central Tromsø and attracts all guest segments. The hotel is today performing very well, and we complete the acquisition at a high yield. At the same time, we see large potential, through targeted investments, to create one of northern Scandinavia’s leading full-service hotels for leisure-, business- and group travelers.” – Liia Nõu, CEO of Pandox
The Radisson Blu Tromsø, with a strong market position, is expected to see its value further increase due to planned renovation works. Pandox and Radisson Hotel Group plan to renovate the rooms, bathrooms, public areas, and technical installations. Once these investments are completed, the hotel is expected to generate a stabilized yield of approximately 8%.
The hotel features a restaurant, bar, and 13 meeting rooms, with the largest room able to accommodate up to 650 people. In 2023, Tromsø saw around 860,000 overnight stays, with approximately half of those being international visitors.
Pandox also owns two other hotels in Bodø and one in Harstad, and the acquisition of the Radisson Blu Tromsø aligns with its development strategy in northern Norway. This property will be included in Pandox’s commercial lease segment.
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