Pandox’s vision is to be a world leading hotel property company.
Pandox's strategy contains six building blocks:
1. Focus on hotel properties with attractive risk-adjusted returns
Pandox focuses on hotel properties with attractive risk-adjusted return. The company invests exclusively in hotel properties and has consequently developed significant experience in terms of identifying, acquiring and repositioning properties within this asset class over the past 25 years.
2. Pandox combines lease model with active ownership
Pandox favours long-term and revenue-based leases which provide revenue visibility, income stability, lower capital expenditure and reduced risk for the company. These leases, combined with an active ownership strategy adopted on an asset-by-asset basis, create value and opportunities across the hotel value chain.
3. Broad geographical footprint
Focusing only on hotel properties as a single type of asset requires a broad geographical footprint to create the right conditions for growth and to benefit from positive dynamics in the macroeconomic conditions and the hotel business cycle. On aggregate, Pandox owns hotel properties across 90 different cities in 15 countries which cater to a good balance of international and domestic demand.
4. Sizeable hotels in key leisure and corporate destinations
Pandox is dedicated to sizeable full-service hotels in key leisure and corporate locations primarily in the upper-medium to high-end segments. Pandox's opinion is that such hotels provide better business opportunities while simultaneously reducing risk. The company believes that the reduced risk is a result of the fact that typically larger hotels deliver stronger cash-flows and historically have been easier to finance.
5. Investments in underperforming hotel properties
Pandox targets investments in underperforming hotel properties in strategic locations, which can be refurbished, restructured, and/or repositioned and where the company’s active ownership strategy and expertise can be leveraged.
6. Brands and partners that support each individual hotel
Pandox seeks brands and partners that strengthen the profile, market position and operations of each individual hotel. This requires Pandox to maintain a broad network of business partners for cooperation. Pandox currently cooperates with some 30 different well-known and well-established brands, including a number of independent hotel brands that Pandox's have created.