SVENSKA ENGLISH SEARCH ABOUT PANDOX HOTELS OUR BUSINESS INVESTORS GOVERNANCE PRESS PROPERTY PORTAL Market overview Home About Pandox Market overview ABOUT PANDOX Strategy and vision Organisation Board of directors Executive management Hotel managers Market overview Responsibility CSR projects Pandox spirit History Contact Hotel market development – second quarter 2015 Growth outlook still positive The global recovery is continuing its positive trend in a climate of low interest rates. However, there are still major differences in growth potential from region to region and country to country. The recovery is being helped by low interest rates and lower oil prices, particularly in mature economies such as the US. The economic outlook for the euro zone is better than it has been for a long time due to expansive monetary policy and a weak euro which are having a positive effect on consumption, among other things. Substantial structural problems remain however, and Greece’s future in the EU is still uncertain. In the Nordic region, the Swedish economy is growing across a broad front and Denmark’s economy is experiencing a stable and positive trend. Finland is still being negatively affected by weak economic demand, among other things, and Norway is facing an economic headwind due to a low oil price. Continued improvements in key hotel markets RevPAR development quartely (in local currency). 2012-FY 2013-FY 2014-FY Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2 - 2015 USA 7% 5% 8% 6% 8% 8% 9% 8% 7% New York 6% 4% 3% -1% 5% 4% 1% -4% 7% Montreal -2% 6% 10% 5% 7% 17% 7% 8% -2% Europe 5% 2% 6% 6% 4% 5% 7% 6% 6% London 2% 1% 3% 7% 1% 2% 4% 2% -2% Brussels -2% 2% 3% 5% 4% 3% 1% 2% 8% Berlin 9% 0% 5% 2% 1% 10% 5% 5% 15% Stockholm -5% 0% 2% 4% 0% 3% 1% 5% -3% Oslo -3% 4% 1% 7% -5% 3% 0% 2% 14% Helsinki 4% -5% 2% 2% 0% 4% 3% -1% -3% Copenhagen 5% 6% 4% 13% 2% 3% 1% 8% 10% Source: STR (USA, Canada, Europe, Finland), Benchmarking Alliance (Sweden, Norway, Denmark) Strong trend in the US hotel market continues In the US RevPAR (revenue per available room) growth for the second quarter was 7 percent. The strong trend in the US market since 2011 is continuing and analysts are expecting RevPAR growth of 7 percent for both this year and 2016, partly due to anticipated limited new capacity in the country. This means double-digit growth in profitability in the industry, which has contributed to, among other things, increased interest in the hotel property sector and rapid development in the transaction market. A stronger dollar and increased new capacity resulted in a fall in RevPAR of 2 percent in New York during the quarter. A stronger dollar and an improved economic trend in the US are expected to have a positive effect on American international travel, which is important for key markets such as Canada and Europe. Positive trend in Europe and the Nordic region The hotel markets in Europe experienced a positive trend in general for the quarter with RevPAR of 6 percent. This growth is driven in relatively equal parts by higher occupancy and improved average prices. Cities with the strongest growth included Madrid, Dublin and Milan – all cities in so-called PIIGS countries. On the Nordic hotel market, Copenhagen continues to demonstrate good growth based on increased demand and improved average prices. Stockholm overall is on a par with the previous year after June; demand is increasing, while the average price is lagging, partly due to a segment shift towards a larger percentage of leisure travellers. Oslo’s RevPAR increased by 14 percent in the second quarter, mainly as a result of June being a strong month. The Helsinki market is characterised by weak domestic consumption and fewer visitors from the Russian market, which Share: Email Facebook Twitter ABOUT US 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 104 hotels with approximately 22,000 hotel rooms across eight countries. The Company QUICK LINKS About Pandox Hotels Our business Investors Governance Press Contact Strategy and vision Pandox for investors FOLLOW US CONTACT US Pandox AB (publ) Vasagatan 11, 9th floor 101 20, Stockholm Sweden Show on map Tel +46 8 506 205 50 Fax +46 8 506 205 70 Email info@pandox.se Show all contacts