Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised Swedish hotelier Pandox AB (‘Pandox’) on the successful group reorganisation of the Jurys Inn hotel businesses it acquired with operating partner Fattal Hotels Group (‘Leonardo’) from Lone Star in December 2017.

The acquisition and financing of the 36 businesses under the Jurys Inn brand, as well as one Hilton Garden Inn, included the simultaneous acquisition of a hotel owning and operating business.  From the beginning of the transaction, Pandox planned to reorganise the group once the acquisition completed in order to get the best deal, which added to the complexity. The acquisition and financing documentation included an agreement to carve out the operating business and the property assets. Freshfields also advised Pandox on the acquisition and financing of the businesses in 2017.

Following the group reorganisation, Pandox retained 20 investment properties and one operating property in the UK and Ireland, and Leonardo acquired the remaining investment properties as well as the Jurys Inn operational platform. Pandox’s investment properties will be operated by Leonardo under long-term revenue-based lease agreements.

This complex and challenging transaction builds upon Freshfields proven track record advising clients in the European hotels market. The acquisition and financing of the Jurys Inn portfolio was the largest transaction by deal value in the European hotels market in 2017.

The Freshfields team was led by partners Victoria Hills and Patrick Ko in relation to the group reorganisation and by partner Max Lang in relation to the financing arrangements.