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Pandox Upgrade - Nr 1 2013 (En) Pandox Upgrade - Nr 1 2013 (En) Document Transcript

  • UpGradeM 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 T H E L EA D I N G H O TE L P R O P ERT Y C O M PA N I E S I N E U R O P EThree questionsto four new hotelmanagers10p .Tiny stepstowards abrighter future4P .Pandox’ CEO­criticizes brandcompanies9P .S po t ligh t#12013Handballgot Mosesoff thestreet– creating a better futurefor Kenyan youngstersPANDOXHANDBALLYOUTH MOVEMENT
  • The positive trend in the US market that started last year is stillgoing strong and the market is developing well. NorthernEurope is flat but we see some positive signals in the confer-ence market in larger cities, and that is usually an early sign ofincreased activity.Unfortunately, the Nordic markets are in a negative trendand the start of 2013 has been tough. Normally, you would saythat the Nordic markets are relatively stable and a good placeto invest when times are tough. This is not true in 2013! Thereason is all the added new hotels. Despite increased demand,the revenue per available room is decreasing which leads tolower profitability and low or negative value growth. Stockholmis at the moment 7,5% under the RevPAR-level of 2007, if youadjust for inflation, – not that much fun for those who havebased their investment decisions using old revenue data.The hotel industry’s equivalent to the property ownersMIPIM is the International Hotel Investment Forum, IHIF – thelargest and most important meeting place for people in thehotel business. This year’s conference was held at the begin-ning of March with many interesting topics. Personally, I wasinvited to be on a panel that discussed what drives valuegrowth in a hotel property.This is a very important question. Investors and hotel own-ers often have a false picture of what an international brandcan do to their property value. Very few know and understandthat the business model behind the big brands is all aboutdeveloping the brand, not running a hotel. The operationsalways come a distant second – despite the fact that this is themost important factor for value growth. You can read moreabout this on page 7.The activity levels at Pandox are high. Very high. We areinvesting SEK 2 billion in our hotel property portfolio over thenext three years. The investments are made in new products,improved current operations, better logistics which improvesproductivity, new attractive designs, etc. The lion share of theinvestment goes to hotels that belong to Norgani, a companywe bought in 2010 that we are currently restructuring anddeveloping.The largest project, which we have named Moby, covers 21Scandic roadside hotels and is all about creating a new gener-ation of the classic hotels that just about every Swede has vis-ited at some time. Ten sub projects are already up and runningand the majority are expected to be finished by 2013. Amongother large projects running at the moment are Scandic Conti-nental and Radisson Blu Arlandia while Hilton Stockholm,Scandic Copenhagen and Quality Luleå have just been com-pleted. Now the challenge is to use the new modern profiles ofthese hotels to increase market share and improve cash flow.During the year, we have also taken over the operations atthree German hotels, Bremen, Dortmund and Lübeck. Thesehotels have been owned by Pandox for over ten years but upuntil now, the operations have been managed through leaseagreements with Hilton and Scandic.The 2013 Scandinavian hotel market will be dull whileEurope is expected to be solid with the chance of a strong fin-ish to the year. Before Christmas, we said it would be worsebefore it got better. Now, as the first quarter of the year haspassed, we believe that the bottom is near – but recovery willbe slow.The Swedish Handball Team took a giant step towards theEuropean Championships by beating Poland 28–21 in front ofa full house at Malmö Arena. But we are not safe yet – we needto pick up points against Ukraine or Holland before we canraise the flag. The European Championships are played inDenmark during January 2014 and is expected to raise thetemperature in our southern neighbour considerably, and thatis good news for the hotel industry. Another important piece ofnews from the world of handball is that the national teamcoaches, Staffan Olsson and Ola Lindgren, have extendedtheir contracts, which means that the successful triumviratefrom the London Olympics will remain intact.As soon as the Swedish football league, Allsvenskan, wasup and running, a game had to be suspended. Curtains!!Yours sincerely,Anders NissenWe are near the bottom,but recovery will be slowJUST A WORDAddress: Pandox AB (publ)P.O. Box 15SE-101 20 Stockholm, SwedenTel.: +46 (0) 8 506 205 50Fax: +46 (0) 8 506 205 70E-mail: info@pandox.seVisiting address:Vasagatan 11, 9th floor, StockholmGraphic design and production:Hallvarsson & HalvarssonPhotos: Ulf ­Blomberg, Markus Bäck-ström, Peter Hoelstad et al.Printing: TMG Sthlm, May 2013.May be reprinted only with the­permission of Pandox.Cover: The Pandox Youth HandballMovement strives to create betterfuture opportunities for children andyoung people in the Kenyan town ofNyeri. Moses Maina is one of them.Upgrade can be ordered from Pandoxor read at www.pandox.sePandox Upgrade.Market information from Pandox –published approximately threetimes a year.Editors: Anders Nissen,Marika Hilldoff, Ingrid Löwy2 market information from Pandox
  • NewsHotel worldJANUARYScandic resumes operative­responsibility of Hilton Malmö CityHilton left Hilton Malmö City on the 31stof December 2012 when Scandic reas-sumed operative responsibility. At thesame time, the hotel was rebranded asScandic Triangeln. The hotel was firstopened in 1989 as Sheraton MalmöCity (1989–1997) and later run as Scan-dic Hotel Triangeln (1997–2002). On the15th of August 2002, the building wasreopened as Hilton Malmö City, but nowthe hotel is back under the Scandicbrand. Starting this year, Scandic willcompletely refurbish the hotel in coop-eration with the landlord, Vasakronan.Scandic Triangeln has 216 rum and sixsuites and is located in central Malmöadjacent to the shopping centre Tri-angeln.A new hotel is opened in LundOn January 7th 2013, Elite Hotel Ideonwas opened in Lund’s tallest buildingand new landmark, Ideon Gateway. Thehotel has 178 rooms and a large confer-ence floor with 8 meeting rooms. TheHotel Ideon is situated in the Ideon­Science Park. Apart from the hotel,Ideon gateway is also home of officepremises designed for over 700 people.New design hotel opens in OsloOslo’s new hotel, The Thief, has 119rooms and is situated by the canal onTjuvholmen, one of Oslo’s current deve-lopment areas. The hotel is a member ofDesign Hotels and will be operated byNordic Hotels & Resort as part of a port-folio that, among others, contain NordicLight, Nordic Sea and Yasuragi inStockholm as well as Copperhill Moun-tain Lodge in Åre. Tjuvholmen, part ofIKEA launches hotel businessIKEA’s parent Inter Ikea Group is coop-erating with Marriott International in thelaunch of a new chain of budget hotelsin Europe under the Moxy Hotel brand.The new chain is expected to open itsfirst hotel, in Milan, already within a year.The new budget hotels will be estab-lished at 150 sites around Europe overthe next ten years. Marriot and InterIKEA believe that the UK and Germanyare the markets with the greatest poten-tial for the Moxy-concept. However, thehotels will not be furnished by IKEA,instead IKEA’s main contribution comesin the form of construction techniqueswhich is expected to minimise buildingcosts. It is the subsidiary Inter Hospital-ity that will own and develop the proper-ties and which is also contributing theestimated 500 million dollar investmentthat the company is planning to invest inthe project over the next five years. Nor-dic Hospitality will be the first franchiseeto operate the hotels.Rezidor opens a new hotelin GothenburgOne of Gothenburg’s largest hotels,Radisson Blu Riverside Hotel, will openon the 18th of March 2013. The hotel issituated on Lindholmspiren on the northbank of the Göta Älv River, next to Lind-holmen Science Park. The hotel willincorporate 265 rooms, restaurant, bar,spa, gym, pool and treatment rooms.InterContinental Hotel Group getsrecord level price at the sale of­Intercontinental Park LaneInterContinental continues to focus onan asset-light strategy and to reducethe amount of capital tied up in the busi-ness. Intercontinental Hotels & Resortswill remain as the operator of the 447-room hotel through a 30-year manage-ment agreement with an option for asecond 30-year term. The hotel waspurchased by Middle Eastern investorsat the record price of £301.5 millionwhich constitutes the largest ever saleand manageback of a single asset in theLondon market.Oslo’s Fjord City project, is a brand newurban area, due for completion in 2014,comprised of 900 flats, 1500 office spa-ces, 14 restaurants and 15 art galleriesand shops, with the Astrup Fearnley-museum as its main attraction.FEBRUARYA new flagship hotel in Stockholm?AMF Fastigheter unveils their plan for theTrollhättan Quarter in central Stockholm.This is the commercial block which ishome to the Gallerian shopping centreand, leaving tenant, Swedbank whorents 50000 m2. In the Trollhättan 33 partof the block, which is situated alongBrunkebergstorg and currently hostingSwedbank’s top executives, AMF Fasti-gheter is planning for a 25 000 m2 hotelwhich would make it one of the largest inStockholm.MARCHElite opens a new hotel in GävleAfter a substantial upgrade of the prop-erty that once upon a time hosted thevenerable Grand Hotel, Elite is onceagain starting hotel operations in theproperty. The property was originallybuilt as a hotel in 1901 but has over thelast 70 years been used for other pur-poses. The hotel, which is situated incentral Gävle, offers 124 rooms, ofwhich 2 are suites, a restaurant and bar,as well as conference rooms with acapacity of up to 130 people.APRILElite opens a new hotelin ÖrnsköldsvikThe new Elite Plaza Örnsköldsvik islocated in the city’s tallest building nearthe Inner Harbour area. The hotel has135 rooms divided over 14 floors, aswell as conference facilities and a spaarea, including a gym and a sauna, atthe top of the building. The hotel willincrease the city’s room capacity by43% – previously there were only a totalof 315 rooms available within the city.Yet another hotel in StockholmThe owners of Hotel Stureplan and themountain resort Björkliden, LMK-kon-cernen, are investing in another hotel inStockholm. It is the previous office ofthe Swedish Export Credit Corporationon Västra Trädgårdsgatan 11 which isbeing redeveloped as Hotel Kung-strädgården. The property comprises atotal of 2 200 m2.MAYMelody Hotel, ABBA The Museumand the Swedish Music Hall of Fameis openingOn May 7th, Stockholms latest designhotel was opened. Melody Hotel has 49rooms and suites, as well as a bar andrestaurant, and is integrated with ABBAThe Museum and the Swedish MusicHall of Fame. The Swedish constructionand property develoment companyArcona owns the property.market information from Pandox 3
  • Globally, fiscal and monetary measures, stimulias well as tightening, have managed to defeatthe most pessimistic predictions of a globalrecession and a break-up of the eurozone.However, the eurozone is continuing to under-perform, the US is slowing down and China isexperiencing weaker growth than expected.The world markets are moving slowly and thereis still great uncertainty both on the upside aswell as the downside...International outlookUS growth was weaker than expected for the firstquarter. The country is still wrestling with a highlevel of unemployment, a budget deficit and down-side risks due to its high exposure to a crisis struckeurozone. On the upside, the housing market hasimproved and barring a severe labour marketdownturn, many commentators are saying thatthere is a good chance for improvement during thesecond quarter and the rest of the year...In China, GDP grew by 8 percentage points in2012. Despite the impressive number, it is theweakest growth since 1999 and below expecta-tions. The cause is obviously the weaker globaleconomy but also the fact that the labour supply isno longer growing.Within the eurozone, a number of countries arestill fighting with high levels of debt and unemploy-ment, making the road to recovery seem long anduncertain. During the fourth quarter, the large econ-omies in the eurozone came to a halt. In Germanyas well as France and Italy, the crisis of the euroremains a source of unease and decreases bothconsumers and companies’ willingness to invest.For the fourth largest economy of the eurozone,Spain, the outlook is even worse. During 2012, theSpanish economy contracted by 1,4 percentagepoints and at the beginning of this year, unemploy-ment levels have reached depressive new heightsat above 25 per cent with youth unemploymentexceeding 50 per cent. Macro commentators statethat the country makes up the largest single riskfactor for the European economy and the Euro-pean stock markets.Outside the eurozone, the UK is wrestling withweak growth, particularly in the London market. Ingeneral, the recovery of the UK economy from therecession has been slower than in many of theother large economies of Europe. Weak demandfrom the eurozone, budget contractions and highinflation, which erases real wage increases, arepointed out as contributing factors. However, thesecond quarter has had a positive start and theBritish pound has strengthened on the back of bet-ter GDP numbers than expected.The NordicsThe Swedish economy has been widely touted as asolid exception from the otherwise bleak Europeandevelopment. Growth during 2010–2012 was fairlysolid given the circumstances. However, thingshave changed and according to commentators,Weak start to the year –tiny steps towardsa brighter futureWhere is the world heading?Focus on the marketExplanations: RevPAR = Income per room availableView from The Hotel, Brussels4 market information from Pandox
  • the outlook for this and next year are less promisingwith weak growth expected. The global economy isnot providing enough support to sustain the paceof the Swedish economy and, in addition, unem-ployment levels are flat lining around eight per centwhich seems to indicate that the recession is hold-ing its grip for longer than expected.Weak international demand is also affectingSweden with the export industry being hit by weakgrowth in important markets. Service providers arebenefiting from domestic demand while industrialproducers, who are more dependent on the out-side world, are having a tough time due to a contin-uously strong Swedish currency. Since the start ofthe year, the Swedish Krona is up against the Euro,the US dollar, the pound and the Norwegian Krone.The Norwegian economy is also showing signsof weakness. Employment is flat and the exportindustry is having to contend with high wage levelsand, like Sweden, a strong currency. Norwegian oilcompanies have cut investment forecasts for 2013and Norwegian businesses have been reportinglower growth in recent months. Denmark may wellbe the country which has suffered the most fromthe recession and there are few signs of improve-ment. The Finnish economy is, similar to the Swed-ish, very export driven and although the outlook forthe year is relatively stable, predicted growth isweak with few bright spots on the horizon.Hotel marketsUS and New YorkThe American hotel market is continuing to keeppace with the US economy and is showing positivenumbers with good development during the firstquarter despite the combined calendar effects ofEaster coming in March this year, and beingincluded in the first quarter as opposed to in Aprillast year, and 2012 being a leap year.During the first quarter, RevPAR growth was 6per cent. Price has continued to drive growth withsupport from a strong corporate market.After previously lagging behind the US average,the New York hotel market was off to a very strongstart to the year and growth in Q1 was nearly 13per cent. Contrary to the rest of the US market,increased occupation rates are driving growth inNew York. In addition, a number of US cities areshowing continuous growth during Q1, however,none with as strong numbers as New York.EuropeThe European hotel markets are starting the yearpretty much as they ended the last, fractioned anddifficult to predict. RevPAR was flat for the firstquarter with significant differences between coun-tries, regions and segments.London ended 2012 on a negative note and thetrend has continued into 2013. RevPAR was downby almost 6 per cent in the first quarter affected byboth lower prices and weak occupancy. London ispredicted to have negative growth during 2013 dueto the exceptional level of 2012 when the city washost to a number of large events specific for thatyear. The market will also have to absorb a signifi-cant increase in capacity which came as a result oflast year’s Olympic Games.Berlin’s hotels experienced a very good 2012,particularly in the autumn. The year ended with aRevPAR growth of 9 per cent, fairly evenly sup-ported by both price and occupancy. The city’sstrong growth was mainly due to a large number ofevents and conferences. During the first quarter of2013, the market is still growing but at a slowerpace. RevPAR for Q1 came in at a positive 4 percent.Paris had a record 2012 which ended with aRevPAR growth of 9 per cent making them theEuropean winners in absolute numbers. Growthduring the first quarter was 4 per cent, a level whichis predicted to be sustained during the rest of theyear. Growth is mainly driven by improved roomrates while demand is predicted to keep improvingbut at more modest levels.The NordicsGrowth has been weak in the Nordic countries andall the capitals are showing negative growth ratesduring the first quarter. This is partly explained bythe calendar effects mentioned earlier.Looking at trends in the tourist market, one cansee that big spending Russians and Americans aremaking up the slack created by weak demand fromhistorically strong markets such as Germany andDenmark. The tough economic climate in southernEurope is also clearly visible, overnight stays inSweden by Spanish and Italian tourists are downby 20 per cent in 2012 according to the SwedishAgency for Economic and Regional Growth.Stockholm numbers are weak for each monthof the first quarter. The market has lost 8 per cent inRevPAR in Q1 including more than 13 per cent justin March. The weak first quarter is partly explainedby calendar effects but January and February alsoproduced drops in prices and volumes.The Berlin market experienced a very good 2012, mainly due to a large number of events and conferences. During the first quarter of 2013, the market is still growing but at a slower pace.The picture shows Hotel Berlin, Berlin. Read more about this and three other Pandox hotels in Germany on pages ten and eleven.market information from Pandox 5
  • The underlying demand has been affected by areduction in business travel which has had a nega-tive effect on prices at the same time as occupancyrates are somewhat affected by an increase inavailable rooms.The short term trend in Stockholm is negative.At the end of March, 12-month rolling RevPAR wasdown 7 per cent while 3-month rolling RevPAR wasdown 8 per cent. Price and occupancy rates areboth to blame. However, previously mentioned cal-endar effects must still be taken into account whenmaking comparisons.Oslo suffered a weak first quarter, just likeStockholm. The market is showing a 7 per centdecrease for the first quarter, mainly due to fallingoccupancy rates. In addition to the Easter effect,the Oslo numbers are affected by a significantincrease in capacity during 2012, including thenewly opened Scandic Fornebu with 300 rooms aswell as Quality Hotel Expo and Comfort GrandCentral with 300 and 301 rooms respectively. Thisyear and in the near future, only a few hotels areexpected to open, including Hotel Thief, whose119 rooms were opened in January this year.The short term trend for Oslo points to sinkingprices and lower volumes albeit somewhat morepositive than in Stockholm. Rolling RevPAR for thelast 12 months came in at –3 per cent while thenumber for the last 3 months was –7 per cent.Overall, the Oslo market and its underlying demandare still stable.Copenhagen is the star of the Nordic hotel marketat the moment. The start of the year was solid andlevel with the end of 2012. At the end of February,the market was level with 2012 but calendar effectsaffected March somewhat, making it drop slightlybelow last year. apacity increases are expected tobe limited during 2013 which points to a continuedpositive development. In March, rolling 12 monthRevPAR was at 3 per cent while the rolling 3 monthRevPAR number came in at –5 per centHelsinki has been affected by the euro crisesand a slowdown in economic activity, which willprobably characterise the hotel market during2013. In 2012, and in previous years, the hotelindustry has benefited from a long term increase inRussian tourists but that trend reversed in January2013 and the numbers decreased by 3 per cent.During 2012, only one hotel, Scandic Paasi with170 rooms, opened and there is very little predictedincrease in capacity for 2013.In March, rolling RevPar for the last 12 monthscame in at plus 2 per cent while the number for thelast 3 months was a negative 5 per cent. During2012, a number of events and occasions, such asthe Ice Hockey World Cup and the European Ath-letics Championships drove demand. 2013 will notbe as exciting, although the Ice Hockey World Cupis returning. All in all, the Helsinki market isexpected to show weak growth during the entire2013.RevPAR growthNordic region 20122012Q12012Q22012Q32012Q42013Q1 TrendStockholm –5% 1% 1% –12% –10% –8% NegativeOslo –3% –7% –5% 0% 1% –7% NegativeCopenhagen 5% 6% 10% 1% 3% –5% NegativeHelsinki 4% 4% 11% 4% –4% –5% NegativeSources: Benchmarking Alliance (Stockholm, Copenhagen and Oslo), STR Global (Helsinki).NOK2003004005006007002013Q12012Q1201220112010200920082007RevPARRevPAR, NOK Source: Benchmarking AllianceOsloEUR5055606570752013Q12012Q1201220112010200920082007RevPARRevPAR, EUR Source: STR GlobalHelsinkiDKK2003004005006002013Q12012Q1201220112010200920082007RevPARRevPAR, DKK Source: Benchmarking AllianceCopenhagenScandic CopenhagenSCANDINAVIAN OVERVIEWSEK5006007008002013Q12012Q1201220112010200920082007RevPARRevPAR, SEK Source: Benchmarking AllianceStockholm6 market information from Pandox
  • BERLIN—Representatives from across the hoteloperating sector engaged in a heated discourse onthe Monday during the opening session of the 16thInternational Hotel Investment Forum.At question was the value of brands—or thelack thereof—as global chains exit from the owner-ship business and make the transition towardsasset light operations.“At an investment forum like this, what shouldwe talk about is really the driver of this industry; weshould not be talking about brands anymore,” saidAnders Nissen, CEO of Pandox AB, which ownsand/or operates 120 hotels comprising 25,000rooms in 10 countries throughout Europe.“We should talk about investment, managementskills, who has the best model, and who is runningtheir business at a high productivity,” he continued.“The stars of this stage should be all the managers,not the brands. I wish that would happen next year.That is the problem we have in this business. Webelieved in brands, but we cannot believe in themanymore.”The hotel brand companies are focused on onlythree things, Nissen said: fostering an asset-lightoperating model; building a pipeline to drive morefees; and driving brand standards.“And who pays?” he asked of these initiatives.“Me.”As the lone brand representative on the panel,Christian Karaoglanian, chief development officerfor Accor, bore the brunt of the verbal assault. Heargued that being asset light does not shield theglobal chains from all risk. Accor, for one, still ownsor leases 20% of its portfolio.However, when panel moderator Simon M.Johnson, head of specialist markets for CBRE,pointed out that Accor has spent more than €600million in order to get out of its leases, Karaoglaniancould only attempt to downplay the charge.“What was OK seven or eight years ago is notnow,” he said, arguing that higher operating costsand lower returns in certain markets have renderedsuch agreements as challenging for all parties.That comment left the door open for Ian Living-stone, executive chairman of private equity firmLondon & Regional Properties, who asked whythen would global chains insist on decade-longmanagement contracts.“Management contracts for 20, 25 years in theold way are no longer sustainable. They’re possiblynot even legal under European law,” he stated,adding that courts might rule them a “restraint oftrade.”“I don’t know how good hotel brands are goingto be in three or five or 10 years. I don’t know whois going to own them if there’s consolidation,” Liv-ingstone said, adding he would prefer a flexiblearrangement with an efficient operator.Nissen suggested management contracts beshortened to five years or less. Then both parties—brands and owners—could re-evaluate and makeadjustments as needed. A truly great brand com-pany should not have any trouble re-signing suchcontracts, he reasoned.Karaoglanian said owners do have a way out, inthe form of various performance guarantees thatAccor and other brands stipulate as part of theirmanagement contracts.Marketing machinesNissen said Pandox would never strike a manage-ment deal with a global brand.“I would like to have control of my (gross operat-ing profit),” he said. “I can lose a lot of revenue butgain a better GOP.”However, Nissen did admit 90% of the group’sportfolio is branded—purely for marketing and dis-tribution, he said.But the outspoken CEO questioned even thatrelationship.“I pay maybe more for the brand than I pay atthe (online travel agency,)” Nissen said. “They startto be more of a distribution channel … instead ofbeing a hotel company.”When asked whether he thought a brand couldaid a potential sale, Nissen was resolute in hisresponse.“I have never found any problem in selling anindependent hotel. It’s easier to sell an independenthotel,” he said.But Karaoglanian maintained brands do enhanceasset value, pointing to studies and examples inwhich properties flying a global chain’s flag sell athigher prices than similar independent hotels.“I think a brand is bringing more in terms of pricethan in terms of occupancy,” he said.Story Highlights• Pandox’s Anders Nissen criticized brandsfor exiting hotel ownership, saying they nolonger have any real skin in the game.• Christian Karaoglanian of Accor arguedbrands still have a lot to lose, despite thepush toward asset-light operating models.• Management contracts are unsustaina-ble—and possibly illegal—claimed Ian Living-stone of London & Regional Properties.FACTS IHIF:The International Hotel Invest-ment Forum (IHIF) is the leadingannual meeting place for theindustry. Over 1,700 people frommore than 60 countries and allareas of the industry attendedthis year’s event in Berlin March 4– March 6. The forum includedinterviews with leading hoteliers,forecasts from top economists,panel discussions on the latestdevelopments, as well as trendsand best practice in the hotel andinvestment industry. Over 180speakers took part in theconference.Anders Nissen of Pandox (right) criticized global hotel brands for exiting ownership while Ian Livingstone of London & Regional Properties looks on.“BRANDS AREN’T HEROES”Brands are no longer the primary business driver, says Pandox’s CEOby Patrick Mayock • HotelNewsNow.commarket information from Pandox 7
  • ThEMe social projectsHis mother died when he was nine and he’snever seen his father.Despite having the odds stacked against himfrom an early age, Moses Maina, 21, is about todefeat the odds and leave the slum.–­Playing handball has offered me the chanceof a meaningful future, he says.Grey clouds loom over the Blue Valley, Kenya,but the rain refuses to fall on the cracked, brick-red soil.– We really could have done with some rain,says Moses Maina, and looks up to the sky.Another school day is over and the narrowpassages between the walls of the sheds thatmake up Kiawara’s slum are beginning to fill upwith children.– Living conditions down here are not verygood. People are poor. There are lots of drugsaround and many don’t have a job to go to, saysMoses Maina.5 000 people, out of the city Nyeri’s 130 000inhabitants, live in his township.A short distance down the hill is Moses Mai-na’s home where he lives with his guardian.– My mother died when I was nine so my”guardian” cooks and cares for me. She’s reallyincredible. We help each other with everything.She is like a mother to me.He proudly shows us his room, his own shackof four square meters.– Please enter. There is room for everyone inhere, he says with a smile.In the gloomy light, there’s a bed, a bedsidetable and up at the ceiling, Maina’s laundry isdrying. The walls are built from wooden scrapsand the cracks are filled with paperboard.– It’s not exactly soundproof, but I do most ofmy homework before I leave school, he says.He spends as little time as possible in theroom; all his waking hours are dedicated to edu-cation and sports.– The room is mainly for sleeping, he says.At the bottom of the valley – at the heart of theslum, is a small dirt pitch.– We started playing handball down here. Iwas seven years old. The pitch was much biggerthen, but the population is growing and the pitchis getting smaller and smaller, he says.The uneven handball pitch has been like asecond home. A place of escape in the middle ofthe poorest areas, but also a place for dreams ofa completely different future.Through the Mount Kenya Sports Group(MSG) and the Pandox Youth Handball Move-ment, Maina is some way along the road to thatdifferent future.– They have helped me with school fees as Iwouldn’t have been able to afford school other-wise. MSG and Pandox have done a lot for me.Playing handball got me off the street and gaveme the opportunity to find a meaningful future.When not training himself, Maina coaches ateam of 12-year old boys from the slum.– It’s really great to be able to give somethingback. I want to show them that you can get awayfrom here and that is my mission. I want to be arole model for them, he says.In just a couple of months, he will have fin-ished school.What do you want to do then?– It will probably be some kind of physicallabour. It’s easiest to get employment in thatarea. But in a couple of years, I want to go to col-lege. I hope and believe that it’s possible. Then Iwould like to start a handball club for the childrenin the slum. That would be fantastic.Moses Maina: “Playing handball got me off the street”Pandox Youth HandballMovement• Name: Moses Maina• Age: 21• Place of residence: Nyeri, Kenya• Occupation: Studying the last year atRware high school• Dream: ”To start my own handball club”8 market information from Pandox
  • ThEMe social projectsDuring just over one week, the Swedish NationalTeam coach was teaching Kenyan youth to playhandball as part of the Pandox Youth HandballMovement project.– I look back on it with great fondness, saysStaffan Olsson.At the beginning of February, Staffan Olssonflew to Kenya and the city Nyeri, three hoursnorth of Nairobi, to teach Kenyan children andteenagers the art of handball.– It is with great joy I look back on the experi-ence. When I think back on that time, I think ofthe joy, interest and dedication to handball.There is a great love for the sport. That’s whatpops back into my mind and stays with me as avery strong memory.The sport gives the youth an opportunity tolearn to work together as a team at the sametime as they are having fun.– I am convinced that sport itself can helpboys and girls attend school. The main objectiveis not to produce international stars at handball,but rather to give them a chance to finish school.The fact that we also contribute to expanding thesport is just a bonus, but a really fun one.What do you think is needed to furtherdevelop handball there?– Three things: material in the shape of ballsand equipment, structure, and by that I meaneducation for coaches and leaders, and, in thelonger term, a league where they can keep play-ing after they have left school.What’s your view on Pandox’ continuedefforts?– I think a mix of knowledge and money isneeded. I am convinced that Pandox has made adifference and has developed this organisation.The way I saw it, the added passion andresources are helping, it goes to good things.Staffan Olsson:“There’s great passionfor the sport”The objective of the Pandox Youth Handball Movement is to create betterfuture opportunities and purposeful leisure time for children and youngpeople in the Kenyan town of Nyeri, north-west of Nairobi. The project ismanaged in collaboration with Partille Cup, the world’s largest and mostinternational handball tournament for young people, and the Kenyanhandball club MSG. Further information about the project and previousarticles are available at www.pandox.se/foretagsansvarmarket information from Pandox 9
  • Three questionsIn an attempt to paint a picture of the hotels and the cities where they are located, we asked each of the new hotel managers three questions:1 What defines the market your hotel issituated in ? 2 What are the main challenges yourhotel is facing ? 3 From a six month perspective, which are your twomost important business-related issues ?Frank SengerHoliday Inn Lübeck2 Commencing in June 2013, the Hotel will be undergoing afull renovation process while maintaining full operations. With this renovation, our Hotel will find a new place inthe market. With a new F&B concept and the new design of ourrestaurant we also aim to attract the Lübeck locals.1 Lübeck is the Queen City of the Hanseatic League and aUNESCO world heritage site. As a result, Lübeck is visited by both MICE and leisuretravellers and is a well-known destination for Germans and for theScandinavian market. The number of residents remained unchanged last year, in line withthe general demographic change in Germany. The average age hasincreased over the last years. The unemployment rate is, with 11%,the lowest since 2005. In 2005 the unemployment rate was approxi-mately 18%. Lübeck is a university town. The amount of students increased by20% between 2005 and 2010. Furthermore, Lübeck is a very culturalcity. The number of visitors to museums increased by about 15%between 2005 and 2011.Focusing on MICE business and on guests from the Scandi-navian market, as well as managing the high demand in thesummertime, and during the Christmas period, while alsoconcentrating on yield management to increase RevPar. Managingthe renovation process to avoid losing revenue during that time.3Employed since January 2013.Background: Considerable internationalhotel experience. Has held various man-agement positions within MövenpickHotels & Resorts, Meliá Hotels Internationalas well as privately owned hotels. Mostrecent position: General Manager TRYP by Wyndham, before this,EAM Meliá Berlin and EAM Mövenpick Resort & Thalasso Crete(Pre- & post- opening and Operation).FACTS | Frank SengerThe Holiday Inn Lübeck (previously Scan-dic) is centrally located next to the Burg-tor, in the direct vicinity of the historic citycentre, offering good access to publictransportation, as well as to the mostimportant companies and institutions of Lübeck. The hotel boasts159 rooms, a fitness centre, an indoor pool and a business centre.FACTS | HOLIDAY INN LÜBECKFrank RückerRadisson Blu Hotel, Bremen2 As the hotel undergoes a major renovation of all public areas,restaurants and rooms without any closing days, we are chal-lenged to keep business alive and continue to delight ourguests during this 15 month period.1 The Bremen market is dominated by several global operatingcompanies such as EADS and Daimler. The hotel itself is locatedright at the heart of the city centre at the famous Boettcher-strasse. Therefore business is also leisure related, the Bremen Christ-mas market, for example, is not only well known in Germany, but alsoin Scandinavia.On June 1st 2013, The Radisson Blu Hotel, Bremen convertsfrom another brand. Hence, I and my team are responsible forthe repositioning of the property with its new name and toincrease awareness among guests. Several marketing activities are already in the pipeline and weare in the middle of a recruitment process to hire new sales people. Giving back responsibility and freedom in decision-making toour employees on site rather than centralising will be one of mymain tasks. I believe in success by working close to the customeras well as my team.3Employed since January 2013.Background: Degree from Hotel Manage-ment Academy Koblenz. Has held severalleading positions in F&B and M&E Sales inthe hotel industry. Became General Man-ager of the Hilton Garden Inn Stuttgart in2008. Appointed manager of the Hilton Dortmund,a Pandox-owned hotel, in 2010. Later, made responsible for theconversion of that property to Radisson Blu.FACTS | FRANK RÜCKERThe Radisson Blu Hotel, Bremen (previ-ously Hilton) is centrally located nearthe River Weser on the historicBoettcherstrasse, the main Bremenshopping area, and just three milesfrom Bremen Airport. The hotel features235 rooms, a large atrium with restau-rant and bar, excellent conference facil-ities, and a swimming pool.FACTS | RADISSON BLU HOTEL, BREMEN10 market information from Pandox
  • Jan-Patrick KrügerHotel Berlin, Berlin2 The oversupply of hotels in the city with increased competi-tion entering and undercutting the market is an area of con-cern. In addition, the opening of the new airport has beencontinuously delayed and has dented the reputation of the city.1 Berlin is a growing market with an increasing number of gueststravelling to the German capital. However, at the same time, thenumbers of new hotels in all categories are rapidly increasing.Berlin is a very vibrant city; lively, liberal and outgoing. The corporatemarket is limited but MICE business is strong. Some international con-gresses and exhibitions take place in the city every year while interna-tional trade shows are few. Furthermore, there is a high demand for lei-sure – both for business groups and for the demanding individual lei-sure traveller.We are currently busy with repositioning Hotel Berlin, Berlin inorder to take the property to the next level. We aim to furtherimprove brand recognition and brand awareness to ensurethat we are well positioned in a highly competitive environment. Wealso see opportunities in revenue management and to work onimprovements in pricing and distribution. In addition, we are work-ing hard to improve efficiency in order to make ensure that we man-age our costs carefully. Finally, we are reviewing our organizationalstructure to ensure that we are optimally organized to maintain andfurther develop profitability.3to four newhotel managersEmployed since March 2013.Background: Has held several leadingpositions in Sales, Marketing and Rev-enue Management in the hotel industry.Became General Manager in 2006 andopened the new Golden Tulip in Ham-burg. Moved to Hilton in 2008 and wasappointed to manage Hilton Dortmund,a PANDOX owned hotel. After this, hemanaged the Hilton Dresden, the mostcomplex hotel operations within HiltonEurope.FACTS | JAN-PATRICK KRÜGERHotel Berlin, Berlin has a central loca-tion within walking distance of theKurfürstendamm. Featuring 701rooms, 18 conference rooms, as wellas several restaurants and bars, HotelBerlin, Berlin is the city’s third largesthotel.FACTS | HOTEL BERLIN, BERLINDieter UlbrichtRadisson Blu Hotel, Dortmund2 The main challenges our hotel are facing are the brandchange made at the beginning of the year, and the enhance-ment of the brand awareness in conjunction with it, as well asimproving the occupancy during off-peak days in the week.Another challenge is to establish the hotel as a place for meetingsand events on a regular basis and as a leading destination for busi-ness people working on projects in Dortmund. Furthermore, wealso focus on weekend and leisure business. Soccer, with its localteam Borussia Dortmund, is a very important factor during the foot-ball season.1 The market here in Dortmund is a very local market with somelarge clients. The key accounts come from various sectors of theeconomy including the machine manufacturing industry, insur-ance companies and energy providers. In addition, areas where oldindustries, like Hoesch, were situated are redefined as attractiveindustrial areas for start-up companies within new technologies.These areas are located near the hotel and we are confident that thiswill bring more companies to the neighbourhood.From a six month perspective, improving occupancy ratesand regaining lost market share are the most important busi-ness related issues.3Employed since March 2013.Background: Started out in 1987 withSteigenberger, Park Plaza Hotels andDorint Hotels, and has held severalpositions in F&B and Sales- and Mar-keting in the hotel industry. BecameGeneral Manager for the Resort Hotelnear Berlin in 2007. Moved on toCologne as Executive Assistant Man-ager with Radisson Blu 2008 and waspromoted in 2010 to General Managerfor the Radisson Blu Media HarbourHotel in Düsseldorf.FACTS | DIETER ULBRICHTRadisson Blu Dortmund (previouslyHilton) is located close to the West-falenhallen area with considerablecongress, exhibition and sportingactivities. The hotel features 190rooms, well-developed conferenceand banqueting facilities, as well as alarge swimming pool and relaxationarea.FACTS | RADISSON BLU HOTEL,DORTMUNDDuring the last months, all of Pandox’ German hotels have had newmanagers. Frank Rücker, Dieter Ulbrich and Frank Senger have takenthe reins at the hotels in Bremen, Dortmund and Lübeck respectively.These hotels have recently been brought in under own operations andrebranded. Jan-Patrick Krüger is the new head at Hotel Berlin, Berlinwhere he takes over from Cornelia Kausch who after six successfulyears is moving on to new challenges.market information from Pandox 11
  • Read more news aboutPandox at www.pandox.seAfter Show Party “All things fall apart”From 22 to 27 March, superstar Curtis ‘50 Cent’Jackson stayed at Hotel Berlin, Berlin to cele-brate the German premiere of his movie ”Allthings fall apart”. 50 Cent plays a young andsuccessful football player diagnosed with cancerand for this role he lost 20 kilograms of hisweight in a very short time. The movie is basedon a true story, which featured his best friend inreal life. The German premiere took place on 24March at the Delphi Film Palace Berlin with theAfter Show Party at Hotel Berlin, Berlin. Nearly500 stars and starlets attended the party, mak-ing it a glitteringly successful event.Prize-winning hotelIHG, was happy to award the Holiday Inn Brus-sels Airport the ‘Top New Enrolled Revenue Per-formance’ with BusinessClub Rewards for 2012in the BeNeScan region!First Green Globe certified hotel in BelgiumCrowne Plaza Brussels – Le Palace is the firsthotel in Belgium that has obtained the “GreenGlobe” certificate, a structured assessment of thesustainability performance of the hotel and itssuppliers. Being a Green Globe member meansthat our hotel saves energy and water resources,positively contrib-utes to local com-munities and itsenvironment andmeets the highexpectations ofgreen leisure andbusiness travellers.Fantastic suites at The Hotel, BrusselsThe creation of four new top-notch suites at The Hotel, Brussels, has recently been completed with theaddition of three Splendour Suites and THE Suite. Now, The Hotel offers 18 elegant and stylish suites. Inaddition to the four new suites, The Hotel also boasts 14 Panorama Suites, all fulfilling the most demandingtravellers’ needs. All suites are spacious, full of light, thanks to their corner location, and come with a top-of-the-range extra-large king size bed as well as a large LED flat-screen TV, a corner- or large silk sofa as partof a seating area, plenty of work-space and an en-suite bathroom equipped with a walk in power shower todream of. Other exclusive contraptions are the large private bar with an extensive selection of complimen-tary drinks and exclusive access to the glamorous Panorama Lounge.Get Amped in AntwerpCrowne Plaza Antwerpen was delighted to hostthe Tesla – Electric Car – Model S ”Get Amped”tour this February. The impressive Motor Trends’”Car of the Year 2013”, hosted 120 test drives fortheir future owners in Antwerp!Art’n BLOOM at Art Truc Troc BOZARWith about 17,000 visitors in one weekend, wecan conclude that Art Truc Troc BOZAR was ahuge success. Loads of post-its were written andstuck next to the beautiful and intriguing works bydifferent artists.Of course Hotel BLOOM! was present with anArt’n BLOOM space in BOZAR. Denis Meyers,Gregory Verheecke and Freddy d’Hoe got thechance to show their works to the public andreceived some great offers!Denis Meyers painted live in the Art’n BLOOMspace and got lots of positive responses! He wasoffered a week in Malta, a report about his artFor the occasion, Tesla had put together a carlounge at the Crowne Plaza Antwerpen, with theModel S placed in the middle of the lounge.Participants had the opportunity to virtually cre-ate their own Model S using one of the company’scomputer based design studios, choosing colours,interior design and so on.Of course, the Tesla Roadster was also show-cased in our meeting lounge. This high perfor-mance electric car has been the eye catcher ofTesla so far.Since electric cars like Tesla’s are gaining mar-ket share in a petrol driven automotive world,should we be part of this new trend by offeringspecially designed parking spaces? Somethingworth considering, we’d say...works, and more, but he has yet to decide what heis going to offer in exchange.Photographer Freddy d’Hoe also had a greatexperience at Art Truc Troc! He received lots ofoffers to travel in Europe but surely the best offerwas an exposition at the gallery Piece Unique inParis! Finally, Gregory Verheecke also received anumber of offers and we can conclude that ArtTruc Troc was a great success for our artists!You can find more information about the artists onthese websites:http://www.denismeyers.com/http://www.gregoryverheecke.be/http://www.dhoefreddy.com/Pandox newsNews from the world of Pandox