Pandox completed the acquisition of seven hotels in Germany from Hotels by HR GmbH, or HR Group, for roughly €290 million, excluding minority.

The Stockholm-based hotel company agreed on Nov. 22 to acquire Dorint am Main Taunus Zentrum Frankfurt, Mercure Hotel Frankfurt Eschborn Ost, Mercure Hotel Frankfurt Airport, Mercure Hotel München Neuperlach Süd, Pullman Stuttgart Fontana, Dorint Parkhotel Bad Neuenahr and Mercure Hotel Schweinfurt Maininsel.

The full-service hotels will continue to be managed by HR Group under fixed leases indexed by 2% per year. The agreements will be converted to revenue-based leases by 2024 at the latest.

The companies also formed a €20 million joint investment program, of which Pandox will contribute €15 million, to upgrade rooms, bathrooms and public areas and to add more rooms in existing properties.