The Jurys Inn 36-strong estate has been acquired by Swedish hotel firm, Pandox AB and its operating partner, Israeli-based Fattal Hotels, from US private equity company Lone Star Funds for £800m.
Pandox, following a reorganisation of the portfolio, will retain 20 investment properties and one operating property in the UK and Ireland, and Fattal will acquire the operational platform with 36 hotel operations under the Jurys Inn brand.
Anders Nissen, CEO of Pandox, said, “The acquisition fulfils all Pandox’s strategic criteria regarding countries, cities and locations, as well as size, segment and profitability, contributing to a further diversification of our revenue base. The hotel properties are of high quality, belong to the profitable upper mid-market segment and will bring an immediate and substantial contribution to earnings.
'Through the acquisition, Pandox adds 20 new hotel cities to the portfolio and achieves a considerable market presence in the UK and the Republic of Ireland, which are large and dynamic hotel markets. The acquisition demonstrates Pandox’s ability to execute on its business strategy in international competition and grow with good profitability also in new markets.'
David Fattal, CEO of Fattal Hotels Group, said, “We are proud to continue consolidating and developing our collaboration with Pandox, our strong expansion partner. The mutual trust we have built up over the last few years forms the basis for our success.
'For us, the acquisition of Jurys Inn hotels represents a huge step forward in our growth. With this, we have the opportunity to further expand and strengthen our expertise and brand awareness in Europe. We look forward to this new challenge.”
Pandox’s hotel property portfolio covers 122 hotels with approximately 27,000 hotel rooms in eleven countries – Sweden, Norway, Denmark, Finland, Belgium, Germany, Canada, Switzerland, Austria, UK and the Netherlands. The hotels are managed under different types of agreements and are marketed under well-known hotel brands such as Scandic, Leonardo, InterContinental, Hilton, Hyatt, Crowne Plaza, Holiday Inn, and Radisson Blu.
Fattal Hotels has 38 hotels across Israel and mostly Continental Europe, with six existing hotels in the UK. This deal will add a further 35 hotels to Fattal’s portfolio in the UK and Ireland (plus one hotel in Prague) and will add a new brand to the group.