Pandox has purchased the Hilton Belfast hotel for £40 million from an affiliate of Starwood Capital.
The 202-room hotel located in the Belfast city centre will be operated under a management agreement with Axiom Hospitality, subject to a franchise under the Hilton brand.
Pandox says the total purchase price, including certain targeted value increasing investments, will initially be financed by cash and existing credit facilities. The hotel property company expects the hotel to generate a stabilised yield of around 10 per cent.
The Hilton Belfast completed a £10 million refurbishment in 2022 and is expected to undergo further improvements under Pandox’s ownership.
Why it matters
Pandox seems to have a lot of confidence in Northern Ireland’s capital, judging by its activity in the city both pre and post-pandemic. It currently owns the Leonardo Belfast Hotel as well as a Jury’s Inn in Belfast’s Great Victoria Street, purchased in 2017 as part of the £800 million acquisition of the Jurys Inn chain of hotels.
Liia Nõu, CEO of Pandox said: “The hotel is well-invested with a strong strategic location in the city center of Belfast. The UK is a one of Europe’s largest and most dynamic hotel markets and Belfast is an attractive destination with a rich business life, several universities, and many attractions, which drive demand from all important segments. We will also make certain targeted value increasing investments to further improve the hotel’s position and profitability.”
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