The hotel industry is seasonal in nature. The periods during which Pandox's properties experience higher revenues vary from property to property, depending principally upon location and the customer base served.

Seasonality

The hotel industry is seasonal in nature. The periods during which the Company’s properties experience higher revenues vary from property to property, depending principally upon location and the customer base served. Since the majority of the customers that stay at Pandox owned or operated hotels are business travelers, the Company’s total revenues have historically been greater particularly in the second quarter. The timing of holidays and major events can also impact the Company’s quarterly results.