Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised Pandox AB (“Pandox”) on its agreement to acquire Hilton’s London Heathrow Airport for £80m.
 
Pandox is a Stockholm-listed leading owner of hotel properties in Northern Europe, with a focus on sizeable hotels in key leisure and corporate destinations. Pandox’s hotel property portfolio currently comprises 121 hotels with more than 26,000 hotel rooms in ten countries in Northern Europe.
 
Hilton’s London Heathrow Airport is a full-service premium hotel with 398 rooms and a strong location at London-Heathrow Terminal 4. The hotel is operated by Adda Hotels – a subsidiary of Hilton Worldwide Holdings – under a revenue-based lease agreement.
 
Anders Nissen, the CEO of Pandox said:
 
"Great Britain is a prioritised market and we are delighted over the acquisition of Hilton London Heathrow Airport at Europe’s largest and the third largest airport in the world. The hotel is large, profitable and has a strong location at London-Heathrow Terminal 4, which the guests reach by a covered walkway. At the terminal swift access to London via underground is available, which makes the hotel attractive to all types of guests. The hotel is operated by Hilton under a long-term revenue-based lease agreement in a sub-market with high occupancy and good average rates and contributes to a further diversification of our portfolio.”
 
Freshfields partner Victoria Hills said:
 
“We are delighted to work alongside new client Pandox on this strategically significant acquisition, which fulfils a long standing aim of our client’s to re-enter the competitive UK hotels market.”
 
The Freshfields team was led by real estate partner Victoria Hills, with support from real estate senior associate Robert Bindless and real estate associate Christine Partridge. Tax advice was provided by tax partner Jill Gatehouse and tax associate Byul Han.
 
The acquisition is expected to be completed during the third quarter of 2017.