The deal is completed
Pandox AB has completed its €1.7 billion acquisition of Dalata Hotel Group plc, now integrating 53 properties across the UK and Ireland. The deal, finalized on November 7, 2025 is expected to boost annual rental income by SEK 1.2 billion and cash earnings by around SEK 450 million. Following a planned divestment to Scandic later in 2025, the total transaction value will stand at €1.2 billion. CEO Liia Nõu emphasized that the acquisition reinforces Pandox’s position as Europe’s leading hotel property owner.
“Through the acquisition of Dalata, we reinforce our position as the leading hotel property owner in Europe. The transaction reflects our ability to make complex and value-creating transactions in international markets together with strong partners. The acquired hotel properties are of high quality, are part of the profitable upper price segment and give an immediate and significant contribution to earnings. With the acquisition, we deepen our market presence in the UK and Ireland which are large and dynamic hotel markets, and we also lay the foundation for further value creation in the portfolio over time”, says Liia Nõu, CEO of Pandox.
Under the management agreement, Scandic will receive a 4% quarterly management fee on hotel revenues until the carve-out of real estate and operations concludes in H2 2026, when Scandic plans to acquire the hotel business outright for €500 million, or roughly 6x 2024 adjusted EBITDA.
CEO Jens Mathiesen said the move strengthens Scandic’s foothold in “two of Europe’s most attractive hotel markets,” describing the transaction as “clearly value-accretive.”
Strong shareholder backing for the scheme
After several months of uncertainty, the wait if finally over. The takeover will be executed through Pandox Ireland Tuck Limited, a special-purpose vehicle owned 91.5% by Pandox and 8.5% by Eiendomsspar.
At meetings held in August, Dalata shareholders voted overwhelmingly in favour, with approval levels ranging from 97% to 100% across the resolutions. Court approval is expected in October, with completion likely by November 2025.
Dalata rejected an earlier offer of €6.05 per share before recommending a revised cash offer in July of €6.45 per share, valuing the company at €1.4 billion. This represented a 35.5% premium to Dalata’s share price before its strategic review and a 49.7% premium to the company’s 12-month average share price.
Scandic to manage Dalata portfolio
Once the acquisition closes, Dalata’s 56 hotels, totalling 12,219 rooms, will be managed by Stockholm-based Scandic Hotels Group.
The portfolio, mainly under the Maldron and Clayton brands, includes 31 owned properties, 22 leased hotels, and three managed under hotel management agreements. Dalata also has a pipeline of 1,912 rooms, with a stated goal of reaching approximately 21,000 rooms by 2030.
Operational footprint and expansion
Headquartered in Dublin, Dalata will maintain its staff and management structure following the transaction. In the first half of 2025, the group reported revenues of €306.5 million (+1% year-on-year), EBITDA of €102.5 million (-5%), and RevPAR of €108.61 (-2%).
“Notwithstanding the external commentary of a challenging year for tourism in Ireland, on a ‘like for like’ basis, our RevPAR in Dublin and regional Ireland is at the same level as the same period last year. However, continued increases in costs and especially pay rates puts downward pressure on our margins. The United Kingdom market has been more challenging.” – Dermot Crowley, CEO of Dalata
Earlier in 2025, Dalata acquired the 229-room Radisson Blu Dublin Airport for €83 million, which will be rebranded as a Clayton hotel in 2026. The company also signed its first hotels in Berlin and Madrid, extending its presence in continental Europe.
Analysis by Adrien Lanotte, senior analyst MKG
