Corner stones in Pandox’ strategy
One type of asset – hotel properties
A hotel property has characteristics that distinguish it from other types of property – which demands specialist expertise in order to pursue active ownership.
Business position: Pandox owns 116 hotels and one congress and fair centre with a total of 24,000 rooms. The Company has never invested outside its core area.
To maximise value-development in each hotel requires a flexible business model that creates potential for a situation-adapted strategy. Pandox’ flexible business model is reflected in the different types of lease.
Business position: Pandox has a contractual structure that embraces lease, management and franchise contracts and agreements, as well as contracts with independent players. The largest proportion includes leases which represent 83 percent of revenues, while the Company’s own-operated hotels and management agreements amount to 12 percent (2011)..
Focusing on one type of asset requires a broad geographic market in order to create growth preconditions and to be able to benefit from changes in the hotel economic cycle.
Business position: Pandox is currently present in ten countries, of which Sweden is the largest market. Major markets outside the domestic market include Brussels, Copenhagen and Montreal. Pandox is represented in locations that have a
mix of national and international demand.
Location and size
Large hotels with strong locations increase potential and reduce risks, as well as being attractive for both partners and guests. These hotels have higher liquidity and are easier to finance.
Business position:All Pandox hotels have strong and natural locations and an average of around 210 rooms – which is significantly higher than the average hotel in each respective market.
Type of hotel
The hotels shall belong to the uppermedium and high-price segments.
Business position: The portfolio is a mix of high and medium-priced hotels. Examples of those in the high-price segment include the InterContinental Montreal, Crowne Plaza Brussels – Le Palace and Hilton Stockholm Slussen. Medium-priced hotels cover many Scandic hotels and the Holiday Inn Brussels Airport.
Choice of brand name and partners
Each hotel shall have the best possible brand name that strengthens the profile – which requires that Pandox maintain a broad network within domestic and international hotel companies.
Business position: Pandox works with 19 different brand names today, as well as with independent distribution channels. The brand names are well-known and established which provides a unique position and network.