Aareal Bank provides €406m for Pandox Hotel portfolio

Aareal Bank has secured a €405.6 mln financing deal for Pandox, a prominent European hotel property company. 

Michelle Weiss

This financing covers a portfolio of 13 hotel properties, totalling 3,458 rooms, located in eight major European cities: Amsterdam, Vienna, Brussels, Munich, Hamburg, Frankfurt, Cologne, and Salzburg.

Part of the loan is designated as "Green" financing, as several properties in the portfolio hold "Very Good" or "Excellent" BREEAM certifications for sustainability. Most of these hotels operate under long-term lease agreements with well-known hospitality brands like NH Hotel Group, NUMA, and Radisson Hotel Group.

Pandox's overall portfolio, valued at approximately SEK 93 bn (€8.6 bn), includes hotel properties across about 90 cities in 11 countries, which they own, develop, and lease.

Michelle Weiss, head of Hotel Properties at Aareal Bank, said: “This financing highlights our long-standing commitment to Europe’s prime hospitality markets and to partnering with owners who actively create long-term value. Pandox’s disciplined asset management approach and strong operating platform form a very robust foundation for sustainable portfolio growth.”

Joakim Andersson, SVP Treasury at Pandox, added: “We value our continued partnership with Aareal Bank, whose deep understanding of the European hotel sector and long-term approach make them a trusted financing partner. This financing supports our strategy of active asset management and portfolio optimisation by enhancing the quality and sustainability of our portfolio.”

Aareal Bank acted as arranger, facility agent, and security agent. DLA and CBRE advised on the deal.