CEO comment Q4 2025: A strong end to the year
• Dalata acquisition completed
• Good growth in comparable portfolio
• Positive outlook and increased dividend
6 February 2026
The year concluded with strong earnings development in both business segments. Total revenue and net operating income increased by 9 and 22 percent respectively, with 31 Investment Properties from Dalata Hotel Group (Dalata) included from 7 November. Acquisitions from earlier in 2025 also made a positive contribution, at the same time as hotel demand strengthened in multiple markets. For comparable portfolios in fixed currency, revenue and net operating income increased by 5 and 7 percent respectively. Recognised growth was, however, held back by a significantly negative currency effect in both segments.
Adjusted for transaction costs (MSEK -241) and preparatory financial costs for the acquisition of Dalata (MSEK -22), cash earnings per share increased by 23 percent.
In the Leases business segment, revenue, net operating income and profitability all increased compared with the previous year, supported by both acquisitions and good demand in the existing portfolio. Dalata contributed MSEK 146 in rental income for the quarter, with a net operating margin of around 95 percent.
Revenue in the Own Operations business segment decreased slightly, mainly explained by negative currency development and to a lesser extent by an earlier reclassification of Numa Brussels Royal Galleries. Thanks to a positive business mix, a high conversion rate, and certain provisions and non-recurring costs in the comparable quarter, net operating income increased by 16 percent compared with the previous year, while the net operating margin strengthened to 34 percent.
In the first quarter of 2026 we completed the divestment of Crowne Plaza Antwerp in Belgium for around MEUR 19.
Dalata acquisition a historic milestone The acquisition of
Dalata is a historic milestone for us and consolidates our position as Europe’s leading hotel property owner. In essence, this provided Pandox with 31 Investment Properties – plus one property in Edinburgh which is currently being converted into a hotel – with a market value of around MSEK 16,900. The value – which was confirmed by an external valuation carried out in the fourth quarter – is in line with our previous communication, adjusted for exchange rate changes.
This acquisition is expected to increase rental income by MSEK 1,145, net operating income by MSEK 1,115 and cash earnings by MSEK 430 on an annual basis, calculated at the current exchange rate (EUR/SEK 10.55). For the fourth quarter we are recognising an acquisition result of MSEK 1,598, including expected transaction costs of approximately MSEK -340, from the divestment of Dalata’s hotel operations to Scandic. This, combined with expected deferred tax of MSEK 1,847, means that the Dalata acquisition will contribute to EPRA NRV by MSEK 3,445, equivalent to SEK 17.70 per share. We are now working on separating the company into a property ownership part and a hotel operations part. This process is expected to be completed in the second half of 2026.
Good financial position
At the end of the fourth quarter our loan-to-value ratio amounted to 52.7 percent. After the end of the quarter, we received credit approval for new financing of MSEK 1,500, bringing our liquidity reserves up to MSEK 3,220. In addition to this we have received credit approval for a one-year extension of existing financing of MSEK 2,000.
Positive outlook
Gradually improving macroeconomic development – with decreasing inflation, stable interest rates and accelerated economic growth – is creating the conditions for growth in the hotel market. Hotel demand is expected to remain good in 2026, driven by increased leisure, business and meeting demand. Limited growth in supply is supporting room rate development in many markets, although there are significant differences between cities and from segment to segment. RevPAR is being driven by a combination of room rate, mix and volume. The dominant risk factor is still geopolitics and trade, where new actions can impact the willingness of companies to invest and consumers to consume.
The acquisition of Dalata is expected to contribute significantly to Pandox’s revenue and earnings in 2026. Other acquisitions concluded during the past year will contribute to growth to some extent as well. The divestment of Crowne Plaza Antwerp will have a negative impact on revenues in the Own Operations business segment to some extent and a smaller but positive effect on the net operating margin. 2026 also started with sustained strengthening of the Swedish krona (SEK).
As a result of this, revenue, earnings and asset values in foreign currency are losing value when converted to SEK. As is usually the case, the first quarter is expected to have seasonally weaker demand in the hotel market. Business on the books is, however, stronger in general than at the same time the previous year.
Supported by strong underlying cash flow, a good hotel market and value-creating acquisitions, the Board is proposing an increase in the dividend to SEK 4.50 (4.25) per share, equivalent to a total of around MSEK 876 (827).