PRESS RELEASE, 17 February 2012

Year-End Report 2011

·    Pandox' cash flow from current operations, including 50 percent of the profits in Norgani, increased to SEK 691.2 million (518.9), representing an increase of 33 percent.

·    Property management revenues amounted to SEK 961.4 million (923.3), representing an increase of 3.3 percent for comparable units, including an adjustment for currency effects.

·    Revenues from Pandox' own operations were SEK 1,244.0 (1,208.6), representing an increase of 3.7 percent for comparable units and adjusted for currency effects.

·    Profit before tax, excluding non-recurring items, rose to SEK 457.5 million (313.5), and to SEK 513.6 million (744.7) including non-recurring items.

·   The driving force behind the improvement in profits and cash flow is a stable hotel market, high quality in the hotel property portfolio, as well as profitable acquisitions.

·    Pandox manages a hotel property portfolio composed of 118 hotels, 1 congress and fair centre with 24,500 rooms, with operations in 10 countries and 58 locations. Ownership of the portfolio is spread, where Pandox wholly owns 47 hotels. The remaining hotel properties are owned in various proportions together with the Company's shareholders. The figures in this year-end report include the hotels that are wholly owned by Pandox as well as the proportion of results regarding each of the other hotels, in accordance with the equity method.

Global economic statistics in the last quarter were in line with the forecasts of most macro-experts. The crisis in the euro zone is however still placing stress on the market, and there is a risk that the Swedish economy could slow slightly. On the other hand, the United States is showing positive economic signs and growth gradually increased during the year with rising company investments and a certain improvement in household consumption, despite weak developments in their disposable income. The beginning of 2012 is also showing positive signs, with surprisingly strong labour market statistics, relatively strong retail trade, and stable order intakes in industry. The United States is not however unaffected by the public debt crisis in Europe, and the initial positive trends could be threatened in the first half-year 2012 further to the situation within the euro zone.

For growth markets, the economic situation is generally strong, although analysts believe that the anticipated decline in demand in Europe will affect the export figures of growth countries in the future.

Within this global situation, Pandox' hotel property portfolio has performed well. Property management revenues grew by 7.4 percent in the reporting period, representing 3.3 percent for comparable units and adjusted for currency effects. The rate of improvement was better than the market on average, which implies that the hotels in Pandox' portfolio in general took market shares. Profits and cash flows continued to rise, driven basically by an improved hotel market, the Company's strategy, high quality in the portfolio, lower financing costs, and the Company's active ownership.

For more information, please contact:

Anders Nissen       
CEO, Pandox AB        
+46 (0)708 46 02 02
anders.nissen@pandox.se

Liia Nõu
CFO, Pandox AB
+46 (0)70 237 44 04
liia.nou@pandox.se

Pandox is the leading player in the hotel property market in Europe regarding geographic area, number of hotels and brands. The portfolio consists of 118 hotels, one congress & fair centre, eleven operational businesses, with 24,500 rooms located in Sweden, Finland, Norway, Denmark, Germany, Belgium, the UK, Switzerland, the Bahamas and Canada. Pandox's hotels operate through differing business structures under well-recognised brands such as Scandic, Hilton, InterContinental, Hyatt, Radisson Blu, Crowne Plaza, Holiday Inn, Clarion, Quality, Elite, First, Rica, Park Inn, Ibis, Best Western, Omena, Rantasipi or through independent distribution channels. Pandox is owned by the Norwegian companies Eiendomsspar AS, Helene Sundt AS and CGS Holding AS.