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Pandox to sell Swedish hotel for 286M kronor

Pandox agreed to sell its 171-room Hovmästaren 1 hotel property in Kiruna, Sweden, to state-owned mining company Loussavaara-Kirunavaara for 286 million Swedish kronor, reflecting a 5.7% yield.

The property, known as Scandic Ferrum, is leased to Scandic Hotels AB.

The Swedish hotelier noted in a release the buyer's plans to facilitate ore mining beneath the ward of Norrmalm, where the hotel property is located.

The asset is expected to change hands Dec. 1.

As of March 27, US$1 was equivalent to 8.22 Swedish kronor.