Outlook

Despite turbulence around the world, the economy has proved to be resilient and the hotel market strong. The general outlook for the hotel market remains positive.

Increased inflation pressure and rising interest rates are increasing our financing costs. This is offset by a business model in which our revenuebased leases provide us with direct exposure to revenue generated by the hotels, which normally also increases in line with inflation and economic activity.

Furthermore, the effect of rising interest rates is mitigated by the interest-rate derivatives we have in place. We also see good opportunities to refinance a significant portion of our debt portfolio at lower credit margins than those in our current credit agreements.

We are also expecting a gradual positive impact on earnings in 2027 from major renovations, including Scandic Grand Marina in Helsinki, Clayton Cardiff Lane in Dublin and Clayton St Andrew Square in Edinburgh, and towards the end of 2027 also DoubleTree by Hilton Brussels City.

In the fourth quarter, we face a strong comparative quarter for underlying cash earnings, adjusted for non-recurring costs of MSEK 263 related to the acquisition of Dalata. As we recognised income from Dalata during more than half of the fourth quarter of 2025, its contribution to growth will be lower in the fourth quarter of this year. In addition, our interest expenses are significantly higher.