Swedish group buys Royal Mile Adagio Aparthotel
Swedish hotels giant Pandox is acquiring the 146-room Adagio Aparthotel in Edinburgh’s Royal Mile in a deal worth £40.5 million.
The hotel in Canongate is housed in a former 1930s seaman’s mission in the Canongate. It was converted in 2016 and neighbours the New Waverley development.
Stockholm-based Pandox expects the hotel to contribute about £2.2m in net operating income per year in a normalised market.
Liia Nõu, chief executive of Pandox, said: “It is an attractive hotel property in an exciting segment in a dynamic and expanding city.
“The hotel is strategically and centrally located in one of the most attractive hotel markets in the UK with well-diversified demand and very good RevPAR levels.
“The acquisition provides exposure towards the extended stay segment, which we hope will grow over time as part of our portfolio.”
Pandox’s hotel property portfolio consists of 157 hotels with 35,000 hotel rooms in 15 countries.