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Pandox AB (publ) interim report January–March 2022

27 Apr, 2022, 07:00
Regulatory information
Strong end to the quarter

January–March 2022

  • Revenue Property Management amounted to MSEK 634 (554). The increase for comparable units was 13 percent, adjusted for currency effects
  • Net operating income Property Management amounted to MSEK 543 (462). The increase for comparable units was 13 percent, adjusted for currency effects
  • Net operating income Operator Activities amounted to MSEK –49 (–80)
  • EBITDA amounted to MSEK 467 (350), an increase of 33 percent
  • Cash earnings amounted to MSEK 180 (85), equivalent to SEK 0.97 (0.49) per share
  • Unrealised changes in value Investment Properties and derivatives amounted to MSEK 279 and MSEK 930 respectively
  • Profit for the period amounted to MSEK 1,044 (36), equivalent to SEK 5.67 (0.22) per share
  • On 28 February the Administrative Court ruled in Pandox’s favour in a previously communicated dispute with the Swedish Tax Agency regarding Pandox’s transfer pricing
  • On 31 March Pandox entered into an agreement to divest Mora Hotell & Spa. The underlying property value amounts to around MSEK 114 before deferred tax and exceeds Pandox’s internal valuation. The transfer of ownership is around 2 May

Comment from CEO Liia Nõu

Strong recovery as restrictions are eased
The first quarter had a weak start due to restrictions and a normal season effect, but ended strong once restrictions were eased in many countries and the hotel market could regain lost ground from the winter’s Omicron-related dip. As before, domestic and regional hotel markets fared the best, but the difference between those and larger cities decreased. This is yet another step towards a normalisation in the hotel market.

The general perception in the hotel market is that we have now entered a more stable phase. The foundations are therefore in place for more sustained demand from leisure and business travellers, as well as larger conferences and events.

My colleagues and I have been affected on a human level by the very tragic war in Ukraine. For Pandox it has been important to help in any way we can. In addition to contributing financially to UNICEF, I am most proud of the efforts by many of our hotels in the Operator Activities segment, particularly in Germany, where those fleeing from the war were offered hotel rooms.

Good recovery in earnings and revenue
For comparable units, Pandox’s total net sales and total net operating income increased by 36 percent and 24 percent respectively in the first quarter, compared with the same period in 2021. Supporting factors was a gradual increase in travel among both individuals and businesses, and very good average price development in several markets. The comparison period in 2021 was however weak. Occupancy for comparable units in the Property Management and Operator Activities business segments was around 40 percent (16) and 31 percent (11) respectively in the first quarter. In March, occupancy for comparable units in the Property Management and Operator Activities segments amounted to around 51 percent (18) and 44 percent (12) respectively.

Strongest development in Norway and UK
As the quarter progressed, increased demand was noted in all hotel markets, albeit at varying rates and from different starting points. In general, demand was the highest in domestic and regional cities, with occupancy in many locations – particularly in the Nordics and the UK – well in line with 2019 levels in the latter part of the quarter. The German hotel market showed good tendencies but was held back by restrictions that were not lifted until 20 March.

It is particularly gratifying to see that demand in many larger cities, such as London, started to really recover and is now at the highest level since the outbreak of the pandemic.

Divestment in line with strategy
At the end of the quarter Pandox entered into an agreement to divest the hotel property that houses Mora Hotell & Spa in Mora, Sweden, to Cibola Holding AB. This divestment is in line with Pandox’s strategy to constantly optimise the portfolio, focusing on hotel properties in strategic locations, and will take place at an attractive price that exceeds Pandox’s internal valuation.

Next phase of the recovery
We are in a phase of less uncertainty regarding Covid-19 and the conditions are good for continued recovery in the hotel market. Willingness to pay for hotel accommodation is high, which to some extent compensates for lower international travel and lower demand for large conferences. The outlook for trade fairs and conferences is positive and demand is expected to rise in the second quarter and in particular in the second half of the year. An increase in international air travel is also expected to benefit more international destinations, above all Brussels, and this will have a particular positive impact on the Operator Activities segment.

We have noted that the price elasticity of hotel demand has been low so far due to significant pent-up travel demand after Covid-19. The possibility of compensating for increased costs through higher room prices without negatively impacting demand is considered good at this time. Higher room prices are having a positive impact on Pandox’s variable rental income in the Property Management segment. Higher room prices are also making it possible to compensate for potential cost inflation in the Operator Activities segment.

We expect Pandox to see good organic growth in both revenue and profits in 2022.

Liia Nõu, CEO


Presentation of the interim report
Pandox will present this interim report to investors, analysts and the media in a conference call webcast on 27 April at 08:30 CEST. As a service to Pandox’s stakeholders there will also be an external update on the hotel market.

To follow the webcast, go to

To participate by phone, please use one of the following phone numbers:

SE: +46 8 505 583 51
UK: +44 3333 009 035
US: +1 646 722 4957


Attachment: Interim report January–March 2022


Liia Nõu, CEO, +46 (0) 702 37 44 04
Anneli Lindblom, CFO, +46 (0) 765 93 84 00
Anders Berg, SVP Head of Communications and IR, +46 (0) 760 95 19 40

This information is information that Pandox AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 27 April 2022, 07:00 CEST.

About Pandox
Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox’s hotel property portfolio comprises 157 hotels with approximately 35,500 hotel rooms in 15 countries. Pandox’s business is organised into Property Management, which comprises hotel properties leased on a long-term basis to leading hotel operators, and Operator Activities, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company’s B shares are listed on Nasdaq Stockholm.