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Business model

Pandox is a hotel property company that owns, develops and leases out hotel properties to skilled hotel operators. We are an active and engaged owner that since inception in 1995 has created one of the largest hotel property portfolios in Europe.

Property management is at the heart of our business. Our business model is built on revenue-based, long-term leases with good guaranteed minimum rent levels and joint incentives. The tenants are skilled hotel operators who operate the hotels under various brands.

We have individual business plans for each hotel property and we evaluate the hotel’s potential on an ongoing basis, as well as its commercial and technical status.

Operating hotels ourselves is an important tool when acquiring and repositioning hotel properties with a view to signing a new lease.

Key issues

  • How should the hotel be operated?
  • Which is the best business partner?
  • What type of lease should it be?
  • How can we elevate the hotel product?
  • What about brand and distribution?

Our portfolio offers good opportunities for value-adding investments together with our tenants. We also make transformative investments in the hotels we operate with the objective of signing new leases.

We have a close dialogue with each tenant to discuss joint investment projects to further increase the hotel’s revenue and profitability. For example, new beds in existing rooms, new rooms in existing hotel properties or new rooms through extension of existing hotel properties.

Through a combination of knowledge, experience and curiosity, Pandox challenges and inspires its tenants to identify new business and investment opportunities.

Key issues

  • Is the hotel correctly positioned?
  • Which investments need to be made?
  • What is the return on the investment?
  • How should risk and return be shared?

We evaluate the property portfolio on an ongoing basis to ensure that each hotel property has attractive return potential. Pandox has an active acquisition strategy based on industry know-how, a long-term perspective and the ability to act freely throughout the hotel value chain.

Pandox’s opportunities for value creation through acquisitions increase when the object to be acquired is underperforming or where the transaction is highly complex. Divestment is important to free up capital for investments with higher yield potential.

Key issues

  • Why are we making the acquisition?
  • How can we create value?
  • Has the hotel reached its full potential?
  • Are there other investment options?

We want to contribute to sustainable development by creating resourceefficient properties that are operated sustainably, as well as safe and secure environments for our employees and guests.

Sustainability is integrated into our business model and into our day-to-day work. We have placed the most material sustainability topics in five focus areas:

  1. Environment and climate
  2. Responsible and fair business
  3. Guest satisfaction and security
  4. Attractive and equal workplace
  5. Inclusive local communities

Key issues

  • Reduced climate footprint
  • Good business ethics
  • Positive guest experience
  • Secure work environment where people can develop
  • Development of the local community

Between 2019 and 2023 Pandox implemented two green investment programmes focusing on energy efficiency in its own hotel operations. In 2023 Pandox's Board of Directors decided on an investment programme for climate change of approximately MEUR 29 with the aim of achieving the emission targets for Scope 1-2. The program spans over three years and we expect a return in exess of 10 percent.

Value created for society & employees

- Direct and indirect jobs.
- Meeting and recreational environments
- Vibrant local communities.
- Striving for lower energy consumption and greenhouse gas emissions.
- Taxes and charges.

Inclusive local communities
Pandox engages in and contributes to the local community in areas where our employees
have particular knowledge, expertise or interest. Our goal is for all hotels in our own operations and our head office to support at least one local project each. These projects can include offering internships to young people with disabilities, or sponsoring activities for children with cancer. We are proud of the many initiatives that hotels and teams are involved in.

In the spring of 2023 Pandox conducted an employee survey focusing on diversity and inclusion. The results showed that 87 percent feel that they are included in the workplace.

Value created:
- Salaries and benefits MSEK 1,205.
- Attractive and equal workplace.
- Social context and personal development.