Pandox AB strengthens its presence in Cologne with the €66 million acquisition of Pullman Cologne Hotel. Set to close in Q2 2025, the 275-room property offers strong growth potential through renovation and repositioning.

Strategic growth in Cologne’s thriving hospitality market

Pandox AB has announced the acquisition of Pullman Cologne Hotel, a 275-room full-service property located in the heart of Cologne, Germany. This strategic move further strengthens Pandox’s presence in the city, where it already owns three hotel properties. The acquisition, valued at approximately €66 million, is set to be finalized in the second quarter of 2025.

Located near Cologne’s central station and main attractions, the Pullman Cologne Hotel is well-positioned to cater to both business and leisure travelers. With its large meeting spaces, including a conference room that accommodates up to 1,000 guests, the hotel is a key player in the city’s dynamic hospitality sector.

Liia Nõu, CEO of Pandox, expressed enthusiasm for the acquisition:

"We are very pleased to acquire Pullman Cologne Hotel and further strengthen our presence in Cologne. The hotel is in good condition and offers excellent opportunities for increasing net operating income and property value through renovation and repositioning."

Financial and operational impact 

The initial lead for the Pullman Cologne Hotel is estimated at approximately 6.5%, with expectations of a significant increase following planned renovations and repositioning. The seller of the property is Art-Invest Real Estate, acting on behalf of an institutional hotel fund. Once the transaction is finalized, the hotel will continue to operate under AccorInvest as the tenant.

The transaction will be financed through available cash funds and existing credit facilities, demonstrating Pandox’s strong financial position and commitment to long-term investment in high-potential assets.

Cologne, a key market for Pandox

With over 7 million guest nights in 2024, Cologne is a major hub for trade fairs, congresses, and cultural tourism. As Germany’s fourth-largest city, it plays a significant economic role in North Rhine-Westphalia, a region contributing 20% of Germany’s GDP.

Pandox already operates three properties in the city:

• Radisson Blu Cologne
• Leonardo Hotel Köln Bonn Airport
• Leonardo Royal Hotel Köln - Am Stadtwald

With this acquisition, Pandox reinforces its commitment to the German hospitality market, positioning itself for further growth and value creation through strategic renovation and repositioning initiatives.

Pandox's growth in Europe

Germany is not the only European market of interest for Pandox lately. Indeed, the company recently acquired the Radisson Blu Tromsø Hotel in Norway and three Residence Inn by Marriott located in London.