What's Happening?
Pandox AB, in partnership with Eiendomsspar AS, has finalized the acquisition of Dalata Hotel Group plc, resulting in Dalata's delisting from Euronext Dublin and the London Stock Exchange. The transaction, valued at approximately €1.7 billion, includes
the acquisition of Dalata's operating platform by Scandic Hotels Group for €500 million. Scandic has assumed operational responsibility for Dalata's 56 hotels under a management agreement and plans to acquire the operating platform once a carve-out is completed in the second half of 2026. Pandox will retain 31 investment properties in Ireland and the UK, which will be leased to Scandic on long-term, revenue-based leases.
Why It's Important?
This acquisition significantly impacts the hotel markets in the UK and Ireland, as Dalata has been a major operator in these regions. The combination of Pandox's ownership model with Scandic's operational scale is expected to enhance capital investment and growth opportunities while maintaining brand presence and local management continuity. The deal also strengthens Pandox's presence in two of Europe's most attractive hotel markets, adding high-quality, full-service assets that contribute to earnings. The financial structure of the acquisition, supported by an acquisition facility from DNB/Carnegie, positions Pandox for increased rental income and cash earnings.
What's Next?
As the separation of Dalata's property and operating businesses progresses, Scandic's management agreement will transition to long-term leases on the properties retained by Pandox. Shareholders of Dalata are expected to receive their payments by November 21, 2025. The completion of the carve-out and the subsequent acquisition of the operating platform by Scandic are anticipated in the second half of 2026. This transition will likely lead to further strategic developments in the hotel industry across the UK and Ireland.
