Annual report 2022: Historic comeback in the hotel market

2022 was the year the hotel market made a historic comeback. When the pandemic restrictictions loosened their grip early spring, a recovery started, which was both stronger and faster than what most people thought possible. For Pandox the good development translated into strong growth in revenues and net operating income of 73 and 71 percent respectively, compared with 2021.

The year 2022

Comments from management

"Back in the saddle"

2022 commenced in minor but ended in major in what can best be described as a historic recovery for the hotel market. After more than two years of pandemic, which created a difficult business climate for the hotel and travel industries, the hotel market improved strongly as the year progressed

Read Liia Nõu's CEO comment here.

"A year filled with work and valuable insights"

Efficiency makes room for the freedom to think and develop, rather than just getting done what has to be done.

Read Anneli Lindblom's CFO comment here.

"Back on track"

2022 was the year of the hotel industry’s great comeback. Such success tastes particularly sweet to us, as – without wishing to be smug about it – during the pandemic we loudly proclaimed that people and companies would go back to travelling again once this was possible.

Read Christian Ringnes' comments from the Chairman here.

Recovery resulted in strong earnings uplift

The year 2022 had a weak start due to Covid-19 restrictions, but when these were gradually lifted in early spring it was the beginning of a historically strong recovery that continued for the rest of the year. For Pandox this meant strong growth in revenue and profit compared with 2021.

NOI, MSEK +71% vs 2021

Cash earnings, MSEK +188% vs 2021

Loan to value, net

Property value, MSEK

Hotel properties

Hotel rooms

Acquisition of DoubleTree by Hilton Bath

The transaction included both property and operations. The hotel has 176 rooms and is managed under ett management agreement with Axiom Hospitality. Total acquisition value amounted to approx. MGBP 40.

Acquisition of NH Brussels Louise

The transaction included both property and operations. A new lease agreement was signed with Citybox later in the year. The hotel has 246 rooms and the total transaction value amounts to MEUR 35.

Divestment of InterContinental Montreal

In September Pandox entered into an agreement to divest InterContinental Montreal in Canada. The transaction included both the property and operations with a total value of approx. MCAD 80. The deal was closed 1 February 2023.

Sustainability report

”The pieces fall into place”

If 2021 was the year when Pandox sought to
find its role in the fast-moving transition, 2022 was the year when the pieces started falling into place. Our own ambitions, international agreements, laws and regulations have been the most important drivers.

Number of BREEAM certified properties

Share of renewable energy

Employee satisfaction

Value-creating investments in the existing portfolio

Thanks to Pandox's large platform of hotel properties and partnerships across Europe, attractive investment opportunities are constantly arising in our portfolio. It can be renovations, new rooms, extensions or investments to increase energy efficiency. During 2022 Pandox invested approximately MSEK 850 in projects to enhance future growth.

Value-creating investments

Major investments in our own portfolio

Major upgrade and change of brand in Birmingham

Pandox's largest hotel in the UK has recently undergone a complete renovation. As part of the upgrade, the hotel has also changed its brand to Leonardo Royal Hotel Birmingham.

Hotel Pomander opens in Nuremberg

The renovated and modernised Hotel Pomander, in the heart of Nuremberg, is expected to reopen in May 2023. Situated just nearby the old city center and the central station, the hotel is a perfect starting point for exploration of both the contemporary and historical story of the city. Pandox acquired the hotel in 2019 and it has been closed for renovation since mid-2021.

Scandic Park Stockholm takes the next step

Scandic Park – located in central Stockholm and often said to be an extension of the Humlegården - has undergone one of its biggest modernisations in its history. All parts have been renovated with the ambition to rediscover the hotel's origins from the early 1970's.

Future ways of working – how does it affect hotels?

Pandox’s annual Hotel Market Day on 15 November 2022 took as its theme “The future of work and what it means for hotels”. A great many experts discussed what a changed view of work means for hotels as products and workplaces.

View the complete Hotel Market Day here