The acquisition will initially be financed by existing funds and credit facilities, and includes both the hotel and its operations. It will be operated as an independent brand under a new management agreement with Axiom Hospitality.
In recent years, The Queens Hotel has undergone a renovation and upgrade of all rooms, public areas, restaurant and bar.
Liia Nõu, CEO of Pandox, said: “We are pleased to acquire the iconic and market leading The Queens Hotel in central Leeds. The hotel is located next to the city’s largest square and the central station, attracting both leisure and business travellers. The hotel product is in very good condition after a newly completed renovation.
“The transaction is made at an attractive yield, and we see good potential to further increase the hotel’s return over time through active measures in operation, organisation and product offering.”
Manish Gudka, CEO, Aprirose, said: “We are pleased to have executed the sale of this asset to deliver on our strategy for the property. Having followed our investment with a substantial and carefully considered capital expenditure programme to reposition the hotel, we have created value and generated a good return for our investors, exemplifying our overall approach to real estate investment.
“The hotel and leisure sector remains an important focus for our business, and we continue to look for opportunities to deploy our capital in high quality, well-located buildings in growth areas.”
Aprirose’s management platform, Almarose, operates 20 properties within The QHotels Collection portfolio and 14 individual hotels. This includes country house, hotel and spa assets such as Oulton Hall in Yorkshire and Slaley Hall hotel and golf resort in Northumberland.
In 2018 Aprirose also invested in a separate lifestyle concept, Birch.
Pandox’s hotel property portfolio currently comprises 157 hotels with approximately 35,500 hotel rooms in 15 countries across northern Europe.