UpGrade: Market information from Pandox, one of Europe's leading hotel property companies.

1. Up 2011
Autumn
GradeM A R K E T I N F O R M AT I O N F R O M PA N D O X – O N E O F E U R O P E ’ S L E A D I N G H O T E L P R O P E R T Y C O M PA N I E S
Recovery
on most markets
T R E N D S | S O C I A L M E D I A I N C R E A S I N G I N I M P O R TA N C E
SPOTLIGHT
6 8 9
Where are we Theme: A fantastic year
heading? Report Social for Swedish
P. from Hot.E! P. projects P. handball

2. JUST A WORD
Is there any new
miracle cure for the crisis?
The trend for the last New York and London. The situation for these don’t need to tell you that we’re particularly proud
three economic down- metropolises has now reached such a high level of our main speaker, Lars H. Thunell, formerly the
turns in the hotel industry that most of the growth consists of an increase in CEO of SEB and now in a top international position
is clear. The declines are average price. This is healthy for productivity, as as Executive Vice President of the World Bank
becoming deeper and well as for profit and property values. Group and Chairman of IFC, the International
deeper, but the downturn But there is a lot of uncertainty for next year, and Finance Corporation. Thunell will be discussing the
is becoming shorter. there are three main scenarios: The optimists believe latest global macroeconomic trends and providing
If we look at New York by way of example, we can we’ll see an increase in demand in the hotel industry both his own and the World Bank Group’s views on
see that the downturn in the early 1990s lasted and are focusing on at least retaining their share of how to use active measures to support developing
about two and a half years. The decline that the upswing. The pessimists are preparing them- countries and the battle to wipe out poverty and
occurred in the early 2000s lasted for about two selves for a deep recession, focusing on reducing suffering among people. And what’s more, I know
years, while the latest crisis persisted for one and a company costs. The people in the middle are fore- an official secret about Lars H. Thunell which also
half years. The opposite is true as regards the depth casting a certain decline in 2012 and then anticipat- involves Pandox. Want to know more?
of the declines, though. During the first downturn, ing low criteria for growth over the following years. If
income fell by 12 per cent, it fell by more than 20 you belong to the latter category, your priorities will Three Ms – Mega-agreement, Montreal
per cent during the second, and by almost 30 per probably involve increasing the company’s market and Mr Harry
cent during the latest, accelerated downturn. shares. This is not unlikely, given a dynamic pricing Big things are happening at Pandox too. A mega-
So why is this? Most professional commenta- and segmentation strategy. cooperation agreement has been entered into with
tors are of the opinion that this is a result of an Scandic which will involve us upgrading and devel-
increase in the economic imbalances in the world. Popular day with an important theme oping 40 existing hotels. These include 30 classic
The problems with gigantic mountains of debt are A new Hotel Market Day will be held on 15 Novem- motels which will be having makeovers and taking
growing. The shortening of the course of events is ber – the 16th consecutive Hotel Market Day in 16 on completely new styles. The Hyatt in Montreal
thought to be a result of overstimulation of econo- years. Who’d have thought we’d still be holding has also been given a facelift, with a new “Food
mies, with lower interest rates in order to counter- these when we launched the concept back in and Beverage” concept with an entertainment pro-
act economic downturns. A sophisticated form of 1996?! The reasoning behind it at that time was file. This is pretty logical, given the fact that the
doping, you could say! We are now facing an that the company needed an introduction to the hotel is situated in the heart of the city’s entertain-
uncertain future, despite the fact that most busi- capital market prior to the new stock exchange ment district. And last but not least, we’ve
ness sectors are experiencing excellent results. listing which took place the following year. Since recruited ourselves a new Corporate Dog who
This time, weak finances in certain countries in then, Hotel Market Day has developed into a goes by the name of Mister Harry. Mr. Harry is a
Southern Europe are haunting us, creating turbu- dynamic meeting place for the hotel sector. We well trained boxer with a gorgeous woof! He’ll be
lence in the financial systems, butchering market often have the pleasure of welcoming no fewer reporting directly to our highly respected staff
prices and causing doom-laden headlines in the than 300 guests, of whom more and more are member and team captain Staffan Olsson.
business press. There is now a risk of the epidemic coming from markets outside Sweden. This is fab-
spreading to all corporate sectors, with a tangible ulous!! I’d like to take this opportunity to repeat the My very best wishes to you all,
risk of a reduction in economic activity impacting fact that here at Pandox, we’re extremely proud to Anders
on demand in the hotel industry. Anything else see so many people taking the time to attend our
would be surprising. The main question, which all event. This year, the seminar is all about CSR –
should give some thought to, is how the econo- Corporate Social Responsibility – a topical subject PS! If you happen to have missed the news,
mies will be stimulated this time. The interest rate which we all have to take extremely seriously and the ladies’ handball team will be playing at the
gun probably won’t be as effective, given its take greater responsibility for. I believe that these World Championship in Brazil in December. Can
already historically low level... issues will become a natural part of the DNA of all the team repeat their success from last year’s
modern companies. They belong to the values European Championship? The men’s team are
Birds, fish or somewhere in between which each and every company must embrace in competing at the European Championship in
If we look at current market trends, 2011 will be a order to remain attractive to customers, staff and Serbia in January, followed by Olympic qualifiers
relatively good year for the hotel industry in spite of talented people that they want to recruit. in Gothenburg in early April. We have an exciting
everything; particularly for the markets which are a The list of speakers at this years Hotel Market year of handball ahead of us!
long way ahead in the economic cycle, such as Day is probably the best we’ve ever had. I probably
Pandox Upgrade. Address: Pandox AB Graphic design and production: Cover photo: The Hotel, Brussels.
Market information from Pandox P.O. Box 15 Hallvarsson & Halvarsson Upgrade can be ordered from Pandox
– published approximately three SE-101 20 Stockholm, Sweden Photos: Ulf Blomberg, Peter Hoelstad, or read at www.pandox.se
times a year. Tel.: +46 (0) 8 506 205 50 Getty Images, Shutterstock,
Editors: Anders Nissen, Fax: +46 (0) 8 506 205 70 iStockphoto et al.
Marika Hilldoff, E-mail: info@pandox.se
Printing: TMG Sthlm, November
Annelie Sundström Aguilar Visiting address: 2011. May be reprinted only with the
Vasagatan 11, 9th floor, Stockholm permission of Pandox.
2 M A RK E T I N F ORM ATI ON F R O M PA ND O X

3. News
HOTEL WORLD
JULY Elite Hotels is to buy the old Grand
SEPTEMBER
Victoria Towers, Kista.
Hotel in Gävle from Diös. The purchase
Home Properties is selling Radisson price is SEK 40 million. The property will Victoria Towers, the tallest hotel in the
Blu Strand Hotel, the Måns Bok 6 become a hotel once more after 70 Nordic region, is opened. The property
p
­ roperty, to the Frimurare Barnhuset years of other activities. This hotel will was constructed by Arthur Buchardt,
foundation in Stockholm. The under­ be opening under the name of Elite with Peab as the contractor, and is
lying property value amounted to a Grand Hotel in the autumn of 2012 and home to both offices and a 299-room
record SEK 600 million (SEK 95,000 have 123 hotel rooms, a restaurant and hotel. Scandic is hiring floors 1–22, as
per sq m). Radisson Blu Strand Hotel a conference facility with a capacity of well as 33–34 for conferences. There
has 152 rooms and covers a total area 130 people. The total investment will be a sky bar at the top. “It feels great
of 6,300 sq m. The vendor, Home amounts to SEK 150 million. to be helping to open this new land-
P
­ roperties, is continuing its strategic mark. Scandic now has five hotels
cultivation of its property portfolio, New hotel started in the Arenastaden between Stockholm and Arlanda, and
a
­ iming to own only properties run by
Nordic Choice Hotel.
district. Peab has won the contract and
started construction of the new hotel next
Kista is part of Stockholm with a com-
pletely new infrastructure,” Anders Ehr-
OCTOBER
to the Swedbank Arena in Solna. The ling, Group President of Scandic, told Scandic Grand Central – giant new
Skanska is building a new property for contract is worth a total of SEK 502 mil- Travel News at the opening ceremony. hotel in the heart of Stockholm. The first
Winn Hotel Group at Lindholmen in lion. It’s thought that this hotel, which will weekend of October saw the opening of
Gothenburg. This hotel will have 266 be 94 metres high and have 399 hotel Finnish hotel chain Omena Hotels will another hotel in Stockholm, this time on
rooms and is projected for completion in rooms, will be completed by August be opening a new hotel on Torsgatan in the corner of Vasagatan/Kungsgatan.
early 2013. Winn Hotel Group has 2013. The developer is Pasab Fastighets­ Stockholm in March 2012. The new This hotel has 391 rooms and will be the
entered into a 25-year rental agreement utveckling AB, which is owned by Petter hotel will have 251 rooms and be the most expensive Scandic hotels in the
with Skanska, which will be starting con- Stordalen and Arthur Buchardt. The hotel eleventh hotel for this chain. The busi- city, but cheaper than the Nobis and
struction work in the spring of 2012. The will be run by Nordic Choice Hotels. ness concept surrounding Omena Elite. Scandic’s aim is also to be a new
investment amounts to approximately hotels involves a self-service concept in entertainment centre, and the hotel will
SEK 400 million. Publication of this pro- city locations, offering low prices by cut- be offering free shows three to five times
ject comes just a few weeks after the
Swedish Exhibition and Congress Centre
AUGUST ting back on staff and other service. For
instance, there’s no reception; customer
a week.
announced that it would be building one Rica to open a new hotel in Gothen- service is given over the phone. When
of the biggest hotels in Europe, with burg. Rica Hotel No. 25 will be the booking online, guests are given codes
around 1,200 rooms in Gothenburg. name of Rica’s new hotel on Burggreve- which give them access to the rooms
gatan in Gothenburg – a concept in the they’ve booked.
Diligentia is selling the Klockan 1 prop- very heart of Gothenburg. The hotel has
erty in the heart of Stockholm to Norwe- had an extra storey added and all 112 InterContinental to be ten times big-
gian company KLP Eiendom AS. This rooms have been freshly renovated and ger in Russia. InterContinental is pub-
property covers an area of 18,600 sq m fitted out to please business travellers, lishing ambitious plans to open 100 new
and includes the Scandic Grand Central families and larger parties alike. hotels in Russia by 2020 – ten times as
hotel with its 391 rooms, which is open- many hotels as the chain has at present.
ing on 1 October, along with two shops. Best Western is to open its first hotel The new projects include the biggest
The purchase price is SEK 1.1 billion, in Russia. Best Western Vega Hotel & Holiday Inn in Europe, a 1,000-room
with an option of an earnout. KLP is also Convention Center in Moscow is now hotel to open in Moscow in 2014. First Wyndham Hotel in Turkey. Plans
the owner of Radisson Royal Viking, the biggest of more than 4,000 Best are afoot for the opening of the new five-
which is just a stone’s throw away. Western hotels all over the world. The star, 21-storey Wyndham Petek Istanbul
hotel has 970 rooms and the capacity to in the autumn of 2012. The hotel will be
Scandic first company in Sweden to handle more than 1,000 conference conveniently situated less than seven
offer direct booking on Facebook. guests a day. The hotel also has a num- kilometres from Atatürk, Istanbul’s inter-
Social media have become popular ber of restaurants, a coffee shop and a national airport.
channels in the hotel industry. People Turkish bath and Finnish sauna.
can plan a weekend away and book Hotell chains stepping up the pace in
both a rooms and a table for dinner at InterContinental is continuing its China. International hotel operators
Scandic Grand Central, among others, expansion. ICH, with brands such as such as Hyatt Hotels and Carlson are
just by clicking. With this, the hotel InterContinental, Holiday Inn, Crowne Qatari company acquires London’s now competing for new markets in
hopes to be able to reach out to new Plaza and Stalybridge, is planning to W Hotel. Al Faisal Holding Company is China, mainly in the medium price seg-
target groups that use social media open another 28 new hotels in the United acquiring W London Hotel, Leicester ment. Hyatt is planning to use its brand
f
­ requently, daily even. Kingdom. These include a new InterCon- Square, for almost GBP 200 million, name to open Hyatt Place hotels and
tinental flagship hotel in Westminster and thereby implementing one of this year’s Hyatt House hotels. Carlson, which also
a Holiday Inn and Stalybridge, near the most prestigious hotel transactions. owns Radisson, is planning to introduce
Olympic Village. InterContinental already its midrange class hotel Park Inn.
has 269 hotels in the United Kingdom.
M A RK E T I NF O R MAT I O N F R OM PAN DOX 3

4. FOCUS ON THE MARKET
Recovery ongoing
on most major
hotel markets
FAST RECOVERY AND INCREASING RevPAR DESPITE UNCERTAIN CONDITIONS
Increased business travel and a general harsh than expected, and London continues to • The leisure segment is continuing to attract
increase in the leisure and conference seg- remain at the forefront of the economic cycle for visitors and encourage hotel bookings.
ments have led to increasing occupancy and hotels in Europe. Travel remains an important factor for our well-
higher average prices in most major hotel mar- The current RevPAR in London has passed its being and will be given priority even though
kets. However, economic development and historical peak and stood at GBP 110 after Sep- many people may find themselves financially
uncertainty regarding the world economy are of tember, which is almost 10.5 per cent better than challenged as a result.
major significance to the hotel markets. Despite for the same period in 2010. This increase has • Major events in 2012 are driving prices and
a weakening of the economic situation, many mainly been driven by increased prices, but also demand. The Olympic Games, Farnborough
commentators are expecting to see RevPAR by an increase in people visiting the UK due to airshow, the Paralympics and the celebration of
continuing to rise, driven by an increase in the weakened pound. the Diamond Jubilee of Queen Elizabeth are all
average prices. However, the growth rate is major events taking place in London next year.
expected to diminish over time. The question is, does London have • Relatively few new hotels and hotel projects.
any more to give? Although there is still a lot of competition, things
Still strong in the USA Despite the fact the views of households and com- could be worse. The number of new hotel pro-
The year got off to a strong start in the USA, with a panies with regard to the economy are worsening jects is limited, probably as a consequence of
RevPAR upswing of 8.5 per cent over the first two as a result of the uneasy times in Europe, there is the ongoing problems with regard to finance.
quarters compared with the previous year, due pri- still reason to remain optimistic about the hotel • Trendy new submarkets in East London.
marily to increased occupancy. However, this trend market in London. A report from PwC lists five rea- The London Olympic Stadium and many of the
reversed slightly after the summer, most likely due sons as to why: Olympic events will be taking part in the east of
to the situation on the financial markets of the • Business travel continuing to increase. Most London. Renovations are taking place prior to
world. RevPAR for the first three quarters of the companies, particularly in the data and software this, and new hotels are being built. Above all,
year ended up at 8.3 per cent. industry, believe the future is bright and think the new hotels are expected to fall within the
New York is demonstrating weaker develop- they will be continuing to travel. boutique and design hotel segment.
ment than the average for the USA, and RevPAR
has gone up by 6 per cent over the first three quar-
ters of the year, compared with the same period
last year. The price represents more than the entire New York, RevPAR development, January 2010 – September 2011
growth as occupancy has reversed slightly. This
%
loss of occupancy is due mainly to the fact that the
hotel is choosing not to work with low price groups 30 Average price
as the high price market has increased significantly. Occupancy
25
RevPAR
London – how much more is there to recover? 20
London normally comes after New York in the eco-
nomic cycle, but this pattern appears to have been 15
broken now. Recovery from the latest downturn
began with an increase in occupancy in the autumn 10
of 2009, and the price followed pretty soon after. It
is evident that this downturn was shorter and less 5
0
–5
2010 2011
Explanations:
–10
ay
ay
RevPAR = Income per room available
ov
g
g
p
c
p
ar
ar
b
b
n
n
n
ct
n
r
r
l
l
Ap
Ap
De
Au
Au
Se
Se
Fe
Fe
Ju
Ju
Ju
Ju
Ja
Ja
M
M
M
M
O
N
YTD = Year-to-date
The figures are based on statistics from STR Global.
4 M A RK E T I N F ORM ATI ON F R O M PA ND O X

5. Hilton Docklands, London
Hotel Berlin, Berlin
Uneven hotel market in Europe Gothenburg and Stockholm 2010. Among other arrangements for 2010, a
The market for Europe is uneven, with the strongest The Gothenburg market has seen very strong major congress for cardiologists took place in
development being seen in the growth markets in development over the first three quarters of the August which drove up the market. This congress
the east. However, for most of the major hotel cities year. Demand on both the private and corporate was the biggest arranged at Stockholm Interna-
development is being driven mainly by an increase markets has been strong. Many private individuals tional Fairs to date, and was attended by around
in average prices. Occupancy is also continuing to have seen improvements in their financial situations 27,500 delegates. September last year was also a
rise due to the fact that the capacity increase has and been able to enjoy hotel stays. Liseberg has strong month for congresses, with – among others
been relatively limited. For Europe in total, RevPAR also enjoyed very good results over the year. Com- – a major medical conference on diabetes taking
amounted to almost +7 per cent for the first three panies have also increased their travelling and con- place. However, this had no major impact on the
quarters of the year compared with last year. Istan- ference arrangements in the city. Another factor hotel market. A congress of similar size, on cancer,
bul, Venice, Paris, Amsterdam and Gothenburg are which may have influenced these strong figures is took place in September this year as well.
seeing the best development at present. the indicator of a seasonal shift in terms of confer- Stockholm’s RevPAR has also been adversely
ences and congresses. Gothenburg has seen affected by an increase in hotel capacity. Around
Onwards and upwards in Scandinavia more, bigger conferences in the spring of 2011 1,200 new rooms are anticipated to be available to
The major Nordic cities are all showing a positive than was the case in 2010, which may mean that the market for 2011 as a whole. Among other
RevPAR growth for the first nine months of the year. the autumn will pose a little more of a challenge. things, Scandic has opened its new hotels Victoria
The Gothenburg market is showing the strongest February 2012 also sees the opening of the new Tower in Kista and Grand Central in the city. Earlier
trend and heads the lists in Scandinavia with an Clarion Post, with its 500 rooms in central Gothen- this year, All Seasons also opened in Järva Krog,
increase of no less than 13 per cent compared with burg, which will probably not go unnoticed on Elite Eden in the city and Best Western in Bromma.
last year. Then comes Copenhagen with 10 per the market. However, in absolute figures and from a historical
cent, followed by Helsinki with 6 per cent and Oslo Stockholm is demonstrating relatively weak standpoint, Stockholm is still in a good position. Its
with 3 per cent. Stockholm is last, with a RevPAR development in 2011, which may be due to the fact RevPAR is on a par with 2010 and 2008, and aver-
increase of 1.5 per cent. that the market is being compared with a strong age prices are up to the same level as in 2008.
Europe, average price and occupancy, change from 2010 – YTD September 2011 Scandinavian capitals, RevPAR
– YTD September 2011
Istanbul Euro
Venice 100
Paris
Amsterdam 80
Gothenburg
Athens
Occupancy 60
Barcelona
London Average price
Brussels 40
Frankfurt
Madrid 20
Berlin
Europe, total
0
-5 0 5 10 15 20 25 30 35 % 2007 2008 2009 2010 2011-YTD
The figures are based on statistics from STR Global. Helsinki Stockholm Oslo Copenhagen
M A RK E T I NF O R MAT I O N F R OM PAN DOX 5

6. It is obvious that the increase in capacity in the to improve slightly. This is because a number of the Copenhagen
market will continue. The first of the new hotels will trade fairs held every two years are due to take Copenhagen’s hotel market has recovered quickly,
probably be Omena Hotel on Torsgatan in Stock- place in 2012. However, it remains to be seen just primarily due to volumes, and its levels are starting
holm’s inner city, with 250 new rooms, which will be how all this will affect the hotel market. to catch up after the trough year of 2010. RevPAR
opening in March 2012. Clarion Hotel Arlanda will stands at 10 per cent above the level for 2010 at
be opening later in the autumn, with 400 rooms Oslo YTD September 2011, distributed evenly over price
near to Sky City. It is not yet clear when the new The Oslo market, like Stockholm, is dominated by and volume.
Quality Hotel Arenastaden next to the Swedbank major domestic demand. The year got off to a strong
Arena in Solna will be opening, but this is expected start as a consequence of the World Ski Champion- Helsinki
to take place some time in late 2012 or in spring ships in February and March, when much of Oslo Helsinki has also seen good recovery, but is emerg-
2013. This hotel will also have 400 new rooms. was fully booked. Development since then has been ing from low levels. Just as in Copenhagen, the
It is also evident that Stockholm International more uneven, and has been affected by the fact that volumes are what have reinforced the Helsinki mar-
Fairs is expecting fewer visitors next year after a the year is being compared with last year’s strong ket, while prices are lagging behind. The city’s Rev-
number of strong years of really massive con- summer of conferences. Another contributory factor PAR is up almost 6 per cent after September, 4 per
gresses. Both 2012 and 2013 are expected to be is the fact that more rooms are now available in cen- cent from occupancy and 2 per cent from price
weaker in terms of the number of major con- tral Oslo. Another two hotels will be opening in 2012, increases.
gresses, while the number of trade fairs is expected offering a total of 600 new rooms.
Scandinavia, RevPAR development, per month 2011
%
Helsinki
40 Copenhagen
Oslo
30
Stockholm
20 Gothenburg
10
0
–10
–20
–30
Jan Feb Mar Apr May Jun Jul Aug Sep
THE MARKET ON THE MARKET
Where are we heading?
Hot.E! About hotel trends
Hot.E, a hotel seminar, was activity. The results were overwhelmingly positive, in excess of EUR 230 per night, compared with
held in London for the first with no fewer than 80 per cent expressing positive Budapest and Prague with their average prices of
time this year For three confidence in market development over the next less than EUR 70 per night.
days in September, inves- twelve months. Compared with a similar survey
tors, analysts, advisors and carried out during the ALIS conference in January, Future trends
property owners from the hotel world met up to this is a considerable improvement! The main speaker at the seminar was Rohit Talwar,
discuss trends and research future investment CEO of Fast Future Research. Rohit talked about
opportunities in Europe. The hot topic for dis- Market review various trends, future scenarios and the potential
cussion was the problem of debt in Greece, The seminar began with an in-depth analysis from consequences for the hotel industry. Topics for dis-
Spain, Portugal and Ireland. What will the con- STR, which was able to establish that growth in cussion included the increasing population, the
sequences be for the hotel industry, and what Europe has begun to take hold. Volumes have growing number of elderly customers, sustainabil-
will be the next steps in the economic cycle? increased to levels much higher than before the ity requirements, the increasing number of female
credit crunch. The major European cities are now decision-makers, future technology and the grow-
Positive towards future seeing occupancy levels of over 60 per cent. Lon- ing and travelling middle class. Key concepts to
Prior to the seminar, 100 delegates were asked a don is at the top of the list, with more than 80 per take on board include being innovative and getting
number of questions about future hotel develop- cent. Europe’s pricing is more divided. Venice and to know customers!
ment, rate of expansion, projects and transaction Paris are the most expensive, with average prices
6 M A RK E T I N F ORM ATI ON F R O M PA ND O X

7. Scandic Grand Marina,
Helsinki
Hotel 27, Copenhagen
Park Aveny, Gothenburg
Trend: Increasing number of female decision-makers.
Trend: Growing and travelling middle class. Trend: Future technology.
Unanimous panel – Europe to remain back, mentioning the fact that the Grand Prix in
fragmented Monaco attracted as many visitors as in 2008.
Later on the second day of the seminar, a panel So, are people now buying in the crisis-beset
debate took place in which leading investors from countries of Southern Europe? According to the
Starwood Capital Group, London & Regional, Black- panel, there is definitely value in hotel assets for inves-
stone, Canyon Equity and Pandox all expressed their tors looking for opportunities. However, there are lots
concern about the prevailing economic situation in of questions as to when will be the right time to go in
Europe. Above all, they are concerned about less and buy. Homi Vazifdar, CEO of Canyon Equity, reck-
stable hotel markets, suburbs and regional cities, oned in any case that it wouldn’t be a good idea to try
where recovery is late in coming and occupancy has to pinpoint the nadir, instead to rely on analysis and
still not taken an upturn. The panel also agreed that dare to buy if investment opportunities meet require-
recovery after the recession may take a long time, up ments. The situation quite simply seems to be com-
to five years or more for some markets. pletely normal. Everything is for sale – at the right price.
However, Ian Livingstone, Chairman of London And we all want to buy, too – at the right price. So
& Regional, maintained a positive outlook and what deals are of interest? Among major hotel prop-
expressed his opinion that corporate travel and erty companies, debt-free assets in the higher market
major conferences have made a massive come- segments are what seem to be at a premium.
M A RK E T I NF O R MAT I O N F R OM PAN DOX 7

8. THEME SOCIAL PROJECTS
HANDBALL KENYA
• Number of inhabitants: 38 million.
• Capital: Nairobi (3 million inhabitants).
IN KENYA
• Area: 580,000 square kilometres
(Sweden 450,000).
• Constitution: Republic (independent
since 1963).
• Language: All Kenyans speak English,
Swahili and one of the 55 local languages.
• Religion: About 70 per cent Christian,
about 10 per cent Muslim, minorities
Bahai, Hindus and Sikhs.
This year’s theme for Pandox Hotel Market Day Partille Cup, the biggest, most international youth then, interest in it has just grown and grown. De-
is CSR and corporate social responsibility in handball tournament in the world. spite a major shortage of materials and training op-
the hotel industry. In line with this theme, here’s We’re convinced that developing sport in this portunities, the MSG has managed to send a num-
a presentation of the social projects which Pan- part of the world will pay off in many regards. Invest- ber of teams to take part in the Partille Cup, thanks
dox has been involved in over the year and ing in communities for children and young people to passionate and talented leaders with positive at-
which we’ll be continuing to work with in future. will create greater interest in the sport, which we feel titudes and plenty of commitment. The summer of
is a key to greater self-esteem, increased motivation 2011 saw no fewer than 60 Kenyan boys and girls
Sport important to child development! to study, active and healthy lifestyles and opportuni- visiting Gothenburg to compete against other
Since the autumn, Pandox has been supporting ties to play their part in a wider social context. teams from Sweden and the rest of the world!
the development of Kenyan handball thanks to
active commitment and support to the Mount Handball in Kenya Pandox Youth Handball Movement
Kenya Sports Group (MSG). This club trains around Handball isn’t a big sport in Africa, and Kenya is no For a long time now, Pandox has been looking for
200–400 children and young people aged between exception to this. People in Nyeri began to show an a social project in which our network, knowledge
4 and 18 in the town of Nyeri, north-east of Nairobi. interest in handball in 2003, when the MSG first and project management experience can be used
This project is being run in cooperation with the sent a team to take part in the Partille Cup. Since as effectively as possible. A project centred on a
FREESET – employment for freedom in India
Pandox has also opted to support the fair trade also given the opportunity to learn to read and write.
company Freeset in Calcutta by buying its prod- Josefin Bergqvist from Pandox worked as a volun-
ucts. This company offers employment to women teer in Calcutta earlier in the year. Last summer, she
who’ve become trapped in prostitution in Sonagac- travelled back there to make a documentary about the
chi, the biggest, mostly unknown district for the sex work of the organisation and to order self-designed
trade and trafficking in Calcutta. In this district, more products for Pandox. Josefin had this to say:
than 10,000 women are forced into prostitution “Supporting Freeset by buying their products is
every day. These women come mainly from Bangla- really making an amazing difference! The aid goes
desh, Nepal and the Indian countryside. Many of straight to the women without passing via middle-
them have fallen victim to trafficking, while for others men. These products are eco-friendly and flexible,
this is their only way out of severe poverty. Freeset and special designs can be ordered. I can see there
gives these women the opportunity to learn to sew, are lots of applications for them in the hotel industry,
and they’re able to make cases, fabric bags and and I hope that more companies will implement
t-shirts which are then sold to companies. They’re similar initiatives.”
8 M A RK E T I N F ORM ATI ON F R O M PA ND O X

9. concept close to Pandox’s own “DNA” and corporate
values – team spirit, passion, development, expertise
What a year
and creativity.
Following a very memorable visit to Nyeri, our belief
that sport plays a vital part in the development of children
for Swedish handball!
has been reinforced. While we were there, we were able to World Championship 2011 – how did it go?
see all the positive things that sport brings with it, as well as
the difficult conditions in which these children often live. We now hope to be
able to help out with the development of the club by means of training camps
and by training trainers through exchange programmes with Swedish clubs,
and to provide project management experience and other support to the The World Handball Championship is one of the biggest sporting
local management in Nyeri. To start with, it’s also important that we make events in Europe, and by far the biggest event in Scandinavia in
sure the club has access to a clubhouse. 2011. This year’s World Championship, which took place in January,
Pandox are proud to be able to help out in any way we can in order to was the 22nd of its kind and involved participants from 24 nations
ensure future success for the sport and also to help improve the living condi- and all continents. The arrangers set their sights high – to create the
tions of these young people! On our website and here in Upgrade, we’ll be best World Championship ever…!
keeping you up to date on what’s happening with the initiative – Pandox
Youth Handball Movement – and how things are going with it. So how did things go?
• Major interest from the media! Around 2 billion TV viewers from 160
Find out more at www.msgkenya.com countries watched the matches. 1,600 journalists monitored the event.
More than 100 TV channels broadcast over 2,200 hours of footage.
• The crowds and the arenas created the atmosphere! Around
PARTILLE CUP
600,000 people went to see 98 matches, equivalent to 222,000
• The biggest, most international handball tournament in the world. t
­ ickets over eight World Championship cities; Malmö, Gothenburg,
• More than 1,000 teams took part this year, involving 20,000 players Kristianstad, Lund, Jönköping, Norrköping, Linköping and Skövde.
from 50 countries. • Trade and industry discovered handball! 14 sponsorship agree-
• The matches were played in 60 locations in central Gothenburg in July. ments were entered into…
• Every day, 35,000 visitors attended the matches during competition week. • And most importantly of all – the teams surpassed themselves!
• The mission of the Partille Cup is to pass on interest in handball in The Swedish Men’s team recovered their place in the hearts of all
the international arena. Swedes and came fourth. This year, the Swedish Ladies’ team also
took second in the European Championship, the Girls’ team came out
on top in the World Championship, and the Boys’ team took bronze in
the World Championship!
• Financial success – surplus of SEK 35 million!
This mega-event was also a
huge success for its arrangers
– in terms of the sport, the public,
the media and the finances!
“The fact that the World Championship ended up being such a success
means that we have more chance now of improving Swedish handball in
a variety of ways, at all levels, from the very youngest players to the senior
teams,” says Hans Vestberg, Chairman of Svenska Handbollsförbundet
and Group President of Ericsson, in a sports supplement to Dagens
Industri on 3 October 2011.
Of course, Sweden has a lot to be very proud of when it comes to
handball. And we have a very exciting 2012 to look forward to!
Around 600 000
people went to
see 98 matches.
Freeset started in 1999 and now has 180 employees.
Its ambition is to expand and open another centre in
North Calcutta. Find out more about Freeset on their
website at www.freesetglobal.com. If you’d like to know
Results, World Championship 2011
more about how your company can help, or to place
an order, please contact Josefin directly: 1 France 9 Norway 17 Slovakia
2 Denmark 10 Serbia 18 Austria
Josefin Bergqvist 3 Spain 11 Germany 19 Romania
Senior Analyst Acquisition & Investment 4 Sweden 12 Argentina 20 Tunisia
Phone +46 8 506 205 50
5 Croatia 13 South Korea 21 Brazil
Direct +46 8 506 205 81
Mob +46 709 150 581 6 Iceland 14 Egypt 22 Chile
Josefin.bergqvist@pandox.se 7 Hungary 15 Algeria 23 Bahrain
8 Poland 16 Japan 24 Australia
M A RK E T I NF O R MAT I O N F R OM PAN DOX 9

10. An ever more important channel
Word of mo
TRENDS: SOCIAL MEDIA
XXXXXXXXXXXXXXXXXXXXXXXX
Marketing is currently developing faster than Moreover, this is an excellent way of informing ing on their Facebook pages. Sites must be wel-
ever before, and the hotel industry is quick to guests of ongoing events, renovations or offers. coming, include exclusive content, focus on pic-
act on trends. Over the last few years, develop- tures and videos, social plug-ins and interesting
ment has headed more and more in the direc- Building image conversations, and make visitors feel like insiders.
tion of online marketing and the use of social Encouraging hotel guests to share their experi-
media. New data shows that price and location ences passes on our reputation and interest in our Handling reviews
are not longer the most important factors when hotels to new groups of people. Surveys show that The downside of the online revolution is that it’s
we choose hotels – but personal recommenda- conversations and personal recommendations on pretty much impossible to maintain control of
tions and reputation are. So what does all this Facebook have more effect on consumers’ choice brands online. As a result, it’s necessary to have a
mean for our industry? of hotels than, for instance, the biggest hotel review clear strategy on how to deal with criticism and
forums; TripAdvisor, Google, expedia.com, etc. negative reviews, as well as on how to increase the
Hotel activities on Facebook, Twitter, Flickr and This offers an incredible opportunity to attract number of good reviews, giving hotels more of a
LinkedIn are just continuing to increase. There’s a lot attention and new bookings, particularly for inde- presence and good reputations online.
of interest in Google+, which is about to be released. pendent and smaller hotels. To build up a good Revinate is one of many companies whose
There’s absolutely no doubt that smart communica- image online, there has to be a constant flow of business concept involves assisting the hotel
tion using social media encourages people to book. new information so that hotels can get people talk- industry to maximise its impact on social by check-
Did you know... Europe’s top ten
tourist attractions
When we choose things to see on our holidays, we often put leisure above culture. 1. Grand Bazaar, Istanbul (15 million visitors per year)
Neither the pyramids nor the Taj Mahal in India qualify for the list of the 50 most visited 2. Notre Dame, Paris (13.5 million visitors per year)
tourist attractions. Instead, the list is dominated by American leisure attractions. The 3. Disneyland, Paris (10.5 million visitors per year)
classic Times Square in New York comes out on top, with 39 million visits per year, follo- 4. Sacre Coeur, Paris (10.5 million visitors per year)
wed by Central Park with 38 million. Compare this with the Great Wall of China, for 5. Louvren, Paris (8.5 million visitors per year)
example, which is visited by around 9 million tourists every year. Travel magazine Travel 6. Eiffel Tower, Paris (7 million visitors per year)
+ Leisure has reviewed statistics from attractions, tourist agencies and other reports 7. Versailles, Paris (6 million visitors per year)
and compiled a list of the most widely visited attractions. 8. British Museum, London (6 million visitors per year)
9. Tate Modern, London (5 million visitors per year)
10. Colosseum, Rome (4.5 million visitors per year)
10 M A RK E T I N F ORM ATI ON F R O M PA ND O X

11. GUEST COLUMNIST
INSIDE THE HEAD OF…
uth an exercising
hotel guest
“Press the pink button for bigger biceps”
was the first thing I saw when I got into the lift
at the Scandic hotel in Gothenburg. Could it
really be that easy? I thought. The late dinner
I’d enjoyed yesterday was making its presence
felt a bit behind my frontal lobe, but I was reso-
lute. I’d go to the gym today.
Once I got to the gym, I made sure that both
towels and water were available. Great! No
clock on the wall, no plastic cups. That would
have been a plus, but it’s no disaster to be with- ness trip, I give priority to function and location.
out them. I jumped up onto the treadmill and If the trip is more of a private getaway, I invest
pressed Start. The sound of my feet hitting the more energy and money in looking for a widely
belt began to resonate throughout the room. It reviewed designer hotel that can give me a little
was almost homely. When I checked out all the bit extra. But almost always, the second thing I
buttons on the machine, its name – “Life Fit- look for is what exercise options the hotel has
ness” – caught my eye. Hm, I thought. Maybe it to offer. If I’m travelling on holiday with my family
should be the opposite, “Fitness for life”! I care- for a week, a gym is a must. No gym, no book-
ing and monitoring online reviews, evaluating cam- fully increased the speed of the machine. The ing. Simple as that!
paigns, etc. According to Michelle Wohl, founder heat began to spread throughout my body and I What I have to do is make sure I pave the way
of Revinate, common sense is the most important knew that I’d passed an important threshold, for me to keep up with my training. But as we all
thing to have when it comes to dealing with reviews perhaps the most important threshold of all – I know, it’s easier to think about it than to actually
online. One cornerstone involves asking what cus- was actually at the gym, and exercising. get on and do it. What I’ve realised now is that the
tomers want, understanding customers’ situations earlier in the day you decide to exercise, the greater
and problems and offering a solution on that basis. The best training is the kind you actually do. the chances of you actually going and doing it.
Michelle lists the basic principles for reviews below: Keeping up with your training when you’re on The more of the day that passes, the greater the
• Respond to all negative comments/online reviews your travels is always a challenge no matter what risk of us falling prey to our own laziness. If we
• It’s great if your response is personal and sent your level – just starting out, exercising every day don’t manage to get to the gym in the morning,
by the right person, ideally the management or majorly keen on the whole thing. As soon as we simply have to make the effort to go at lunch-
• Make sure that the feedback is passed on we alter our daily routines, there’s a greater risk of time and hope some our colleagues will help to
throughout the organisation failing to keep up with the training. Take the sum- drag us there! And if we know that none of these
• Invite the guest back… mer, for example. Most of us do less work, we go tricks will work, we simply have to book a time in
• …and make sure your response includes off on holiday, the weather is better, the days are our diaries and stick to it. To summarise: a short,
a thank-you! longer. So do we train more as a result? Far from “bad” session in the gym is better than nothing,
it! Instead, we start managing our families with a and that old saying “the early bird catches the
view to travelling round the world in 30 days, sail- worm” is every bit as relevant as it’s always been.
ing in the archipelago, sunning ourselves on
some exotic beach or other, or maybe just enjoy- Continuity, quality, quantity. In that order.
1
ing a barbecue and a nicely chilled rosé in the The most important thing is to make sure we do
company of a few good friends. Now that’s not to something regularly. Next on the scale of impor-
say there’s anything wrong with that. Quite the tance is what we do and how we do it, and least
opposite. A place for everything, and everything important is how long we keep going at every
in its place, as they say. But when it comes to session. And now to finish, let’s have a look at
training, this change in our habits leads to us put- quality. Almost all hotels have treadmills. The ho-
ting off our exercise, deciding we’ll just do it tels which have good management teams, have
tomorrow instead, or – in a worst-case scenario treadmills that work, too. Personally, I’ve given up
– not bothering to exercise at all. relying on these machines working,
Most odd. And being on our travels is a bit or on hotels keeping their gyms
like that. We rapidly come up with more open. So now, when I’ve
excuses as to why we can’t train, overwhelm- checked in, I always take a quick
ing the arguments as to why we should. peek at the gym and make sure
that it’s got equipment in it and
Creating the best conditions possible. We that the equipment is working ...
always have a choice. When I decide where I’m
going to stay, of course my first consideration
is what the purpose of my trip is. If it’s a busi-
M A RK E T I NF O R MAT I O N F R OM PAN DOX 11

12. Pandox news
NEWS FROM THE WORLD OF PANDOX
Scandic and Pandox
to make major
upgrade investment
Around SEK 1.6 billion is to be invested in
upgrading and developing 40 existing hotels.
This massive project, which goes by the name
of Shark, is one of the biggest Nordic hotel
initiatives ever seen and will be implemented Running in aid of cancer victims in Brussels!
over the next three years. Everything is going Staff and clients from Hilton Brussels City Centre
to get a facelift and a bit of modernisation!
Shark signing: Martin Creydt, Scandic, and Erik Hvesser, Pandox, took part in a 20 km race and collected EUR
toast their future cooperation on Arholma in the Stockholm
More than half the hotels affected are motels, 14,204 for the Belgian Cancer Foundation. This
archipelago. A delegation of people from Scandic travelled by
while others are in central city locations. taxi boat in order to sign the agreement in the summer. also gave 14 children suffering from cancer the
opportunity to enjoy a break in Spa.
InterContinental Montreal, one of Pandox Bernard Chênevert,
eleven own operations. General Manager
at InterContinental
Montreal.
Pandox has moved! Congratulations Bernhard and InterContinental Montreal!
We’ve now moved into our airy new offices at Vasa- Bernard Chênevert has been named 2011 InterContinental GM of the year for the Americas during
gatan 11, high up on the ninth floor, and we really the IHG Conference that took place in Las Vegas in October. “This achievement would not have been
love it! We’re not far from the Arlanda Express and possible without my team efforts, Lewis N. Fader’s support and our owners’ ongoing inspiration”,
the Central Station, we’ve got plenty of space for comments Bernhard.
conferences and a large, welcoming staff lounge – InterContinental Montreal has also been nominated in the TOP 40 best Canadian hotels of Condé
and of course, our Corporate Dog, Mr Harry, has Nast Magazine (November edition). It is the only IHG hotel in Canada on the list and it is the first time
his very own beanbag there. Fantastic! that the hotel makes the listing of this prestigious magazine.
We send our proud congratulations to Bernhard and his team!
“Welkom in ’t Stad”!
September saw the completion of a major renova-
tion and upgrade, resulting in a completely new
design concept for Crowne Plaza Antwerp. This
concept – “Welkom in ’t Stad” – covers the history,
structure and architecture of the city of Antwerp. So
as of now, the city tour of Antwerp can start right
from inside the hotel! Elements from the city can be
seen in the new parts of the hotel: the lobby and
reception areas, a new meeting room, a new sky bar
with panoramic views of the city, and also the big-
gest fitness centre in Antwerp, with an infinity pool.
Zlatan visits Radison Blu in Malmö
Celeb spotting in Malmö! Zlatan and the AC Milan
players visited Radison Blu in August when they Read more news from
The gorgeous event pool at the
were playing a friendly against Malmö FF. new Crowne Plaza Antwerp. Pandox at www.pandox.com