Midstar Hotels has Acquired the Copenhagen Admiral Hotel

Main Photo: The Copenhagen Admiral Hotel

Date: November 2019

Location: Copenhagen, Denmark

Name: The Copenhagen Admiral Hotel – renovation due 2020

No. of Keys: 366

Seller: CAH Holding A/S, which owns and operates the old warehouse, which – amidst Amalienborg Palace, Amaliehaven, Ofelia Plads and The Royal Playhouse – houses the Copenhagen Admiral Hotel.

Buyer: Swedish Midstar Hotels has acquired the Copenhagen Admiral Hotel and its operating company from CAH Holding. The property is part way through a renovation due to complete in 2020.

The historic building was converted to hotel use in 1978. Currently, Midstar has a portfolio of 26 Scandinavian hotels, of which four are in Denmark.

The hotel was ultimately owned by a number of former SAS airline captains and first officers as well as their children and grandchildren in addition to a few other shareholders.

For years, the hotel has been a top-performer in terms of revenue, which has not gone unnoticed among domestic and international investors. This spring, this encouraged the hotel’s owners to initiate a process together with Colliers International A/S to ascertain the hotel’s value.

Following many indications of interest and negotiations, the process resulted in a sale to Swedish Midstar Hotels AB.

Take-over takes place end-November 2019. The hotel’s large and skilled staff, as well as the collaboration with hotel management company Basalco A/S, will not be affected by the sale and may therefore look forward to working together with the new owner.

Price: Undisclosed

THPT Comment: Wow a bunch of airline captains…a good investment some forty years back. Midstar, not a name that loomed large, surprising with 26 hotels. The company was started in 2015 by Peter Tengström, Ola Stendebakken and Marc Henriksen, who combined have more than 70 years of experience in the hotel and real estate industry.

Their background covers transactions, financing, project management, business development, hotel management and hotel brand development in companies such as Aareal Bank, Rezidor, ADIA, Pandox, HVS, IHG and Host Hotel Eiendom AS.

First Seen: Colliers Denmark website

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