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Germany: Hotel owner Pandox AB has signed an agreement to acquire the 275-room Pullman Cologne Hotel for approximately €66 million.
Pullman Cologne Hotel is a full-service property for both leisure and business travellers. Its meeting facilities include a conference space that can accommodate up to 1,000 guests and its central location provides easy access to key attractions and business districts.
Pandox expects an initial yield of approximately 6.5 per cent, with stabilised yield anticipated to be higher following renovations. The deal is expected to close in the second quarter of 2025 and will be financed through available cash funds and existing credit facilities.
The seller, Art-Invest Real Estate, completed the transaction on behalf of one of its institutional hotel funds.
The hotel, with AccorInvest as its tenant, will join three other Pandox hotels in Cologne, including Radisson Blu Cologne, Leonardo Hotel Köln Bonn Airport, and Leonardo Royal Hotel Köln – Am Stadtwald, taking its total portfolio in the city to 995 rooms.
CEO of Pandox Liia Nõu said: “We are very pleased to acquire Pullman Cologne Hotel and further strengthen our presence in Cologne.
“The hotel has a strong location close to the central station and city centre, and while already in good condition, it offers opportunities for significant growth in net operating income and property value through renovation and repositioning,” she added.
