Stockholm, Sweden – In a landmark transaction, American investment firm CapMan Hotels II has acquired Swedish hotel property company Midstar Fastigheter, marking the largest hotel deal in Nordic history. While the exact purchase price remains undisclosed, industry sources suggest the valuation is approximately 10 billion SEK.
Midstar’s Extensive Portfolio
Established in 2015, Midstar Fastigheter has developed a robust portfolio comprising 28 hotels across the Nordic region:
- Sweden: 16 properties
- Norway: 8 properties
- Denmark: 4 properties
Collectively, these establishments offer 4,702 hotel rooms, with plans to expand to 4,887 rooms by 2027. Notable operators managing these hotels include Strawberry, Best Western, Scandic Hotels, and Elite Hotels.
Geographical Revenue Distribution
Despite having the fewest properties in Denmark, these four hotels contribute significantly, accounting for 45% of Midstar’s rental income. The Swedish properties follow with 37%, and the Norwegian assets contribute 18%.
Financial Metrics and Yield Projections
Projections for 2026 estimate rental income at €59 million (approximately 683 million NOK), suggesting a yield of around 6.5%, based on the speculated sale price. After deducting ownership costs, net rental income is anticipated to be approximately €55 million.
Industry analysts note that prime hotel properties in Norway currently exhibit yields just below 5%, based on 2024 rental figures, with less prominent hotels presenting higher yields.
This acquisition underscores CapMan’s strategic investment in the Nordic hospitality sector, reflecting confidence in the region’s market resilience and growth potential.
