The document provides an overview of the current state of the global, European, and Nordic hotel markets. It notes that while fiscal stimulus measures have prevented a global recession, growth is still weak across regions. The US, eurozone, UK, and Nordic markets are seeing sluggish or negative trends. Specifically, the Swedish market is expected to see weak growth in 2013 as international demand lags and unemployment remains high. Overall, the outlook is that recovery will be slow despite signs that the bottom may be nearing in some markets.

1. Up
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 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 E
Three questions
to four new hotel
managers10p .
Tiny steps
towards a
brighter future4P .
Pandox’ CEO
­criticizes brand
companies9P .
S po t ligh t
#12013
Handball
got Moses
off the
street
– creating a better future
for Kenyan youngsters
PANDOX
HANDBALL
YOUTH MOVEMENT

2. The positive trend in the US market that started last year is still
going strong and the market is developing well. Northern
Europe is flat but we see some positive signals in the confer-
ence market in larger cities, and that is usually an early sign of
increased activity.
Unfortunately, the Nordic markets are in a negative trend
and the start of 2013 has been tough. Normally, you would say
that the Nordic markets are relatively stable and a good place
to invest when times are tough. This is not true in 2013! The
reason is all the added new hotels. Despite increased demand,
the revenue per available room is decreasing which leads to
lower profitability and low or negative value growth. Stockholm
is at the moment 7,5% under the RevPAR-level of 2007, if you
adjust for inflation, – not that much fun for those who have
based their investment decisions using old revenue data.
The hotel industry’s equivalent to the property owners
MIPIM is the International Hotel Investment Forum, IHIF – the
largest and most important meeting place for people in the
hotel business. This year’s conference was held at the begin-
ning of March with many interesting topics. Personally, I was
invited to be on a panel that discussed what drives value
growth in a hotel property.
This is a very important question. Investors and hotel own-
ers often have a false picture of what an international brand
can do to their property value. Very few know and understand
that the business model behind the big brands is all about
developing the brand, not running a hotel. The operations
always come a distant second – despite the fact that this is the
most important factor for value growth. You can read more
about this on page 7.
The activity levels at Pandox are high. Very high. We are
investing SEK 2 billion in our hotel property portfolio over the
next three years. The investments are made in new products,
improved current operations, better logistics which improves
productivity, new attractive designs, etc. The lion share of the
investment goes to hotels that belong to Norgani, a company
we bought in 2010 that we are currently restructuring and
developing.
The largest project, which we have named Moby, covers 21
Scandic 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 running
and the majority are expected to be finished by 2013. Among
other 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 of
these hotels to increase market share and improve cash flow.
During the year, we have also taken over the operations at
three German hotels, Bremen, Dortmund and Lübeck. These
hotels have been owned by Pandox for over ten years but up
until now, the operations have been managed through lease
agreements with Hilton and Scandic.
The 2013 Scandinavian hotel market will be dull while
Europe is expected to be solid with the chance of a strong fin-
ish to the year. Before Christmas, we said it would be worse
before it got better. Now, as the first quarter of the year has
passed, we believe that the bottom is near – but recovery will
be slow.
The Swedish Handball Team took a giant step towards the
European Championships by beating Poland 28–21 in front of
a full house at Malmö Arena. But we are not safe yet – we need
to pick up points against Ukraine or Holland before we can
raise the flag. The European Championships are played in
Denmark during January 2014 and is expected to raise the
temperature in our southern neighbour considerably, and that
is good news for the hotel industry. Another important piece of
news from the world of handball is that the national team
coaches, Staffan Olsson and Ola Lindgren, have extended
their contracts, which means that the successful triumvirate
from the London Olympics will remain intact.
As soon as the Swedish football league, Allsvenskan, was
up and running, a game had to be suspended. Curtains!!
Yours sincerely,
Anders Nissen
We are near the bottom,
but recovery will be slow
JUST A WORD
Address: Pandox AB (publ)
P.O. Box 15
SE-101 20 Stockholm, Sweden
Tel.: +46 (0) 8 506 205 50
Fax: +46 (0) 8 506 205 70
E-mail: info@pandox.se
Visiting address:
Vasagatan 11, 9th floor, Stockholm
Graphic design and production:
Hallvarsson Halvarsson
Photos: Ulf ­Blomberg, Markus Bäck-
ström, Peter Hoelstad et al.
Printing: TMG Sthlm, May 2013.
May be reprinted only with the
­permission of Pandox.
Cover: The Pandox Youth Handball
Movement strives to create better
future opportunities for children and
young people in the Kenyan town of
Nyeri. Moses Maina is one of them.
Upgrade can be ordered from Pandox
or read at www.pandox.se
Pandox Upgrade.
Market information from Pandox –
published approximately three
times a year.
Editors: Anders Nissen,
Marika Hilldoff, Ingrid Löwy
2 market information from Pandox

3. News
Hotel world
JANUARY
Scandic resumes operative
­responsibility of Hilton Malmö City
Hilton left Hilton Malmö City on the 31st
of December 2012 when Scandic reas-
sumed operative responsibility. At the
same time, the hotel was rebranded as
Scandic Triangeln. The hotel was first
opened in 1989 as Sheraton Malmö
City (1989–1997) and later run as Scan-
dic Hotel Triangeln (1997–2002). On the
15th of August 2002, the building was
reopened as Hilton Malmö City, but now
the hotel is back under the Scandic
brand. Starting this year, Scandic will
completely refurbish the hotel in coop-
eration with the landlord, Vasakronan.
Scandic Triangeln has 216 rum and six
suites and is located in central Malmö
adjacent to the shopping centre Tri-
angeln.
A new hotel is opened in Lund
On January 7th 2013, Elite Hotel Ideon
was opened in Lund’s tallest building
and new landmark, Ideon Gateway. The
hotel has 178 rooms and a large confer-
ence floor with 8 meeting rooms. The
Hotel Ideon is situated in the Ideon
­Science Park. Apart from the hotel,
Ideon gateway is also home of office
premises designed for over 700 people.
New design hotel opens in Oslo
Oslo’s new hotel, The Thief, has 119
rooms and is situated by the canal on
Tjuvholmen, one of Oslo’s current deve-
lopment areas. The hotel is a member of
Design Hotels and will be operated by
Nordic Hotels Resort as part of a port-
folio that, among others, contain Nordic
Light, Nordic Sea and Yasuragi in
Stockholm as well as Copperhill Moun-
tain Lodge in Åre. Tjuvholmen, part of
IKEA launches hotel business
IKEA’s parent Inter Ikea Group is coop-
erating with Marriott International in the
launch of a new chain of budget hotels
in Europe under the Moxy Hotel brand.
The new chain is expected to open its
first hotel, in Milan, already within a year.
The new budget hotels will be estab-
lished at 150 sites around Europe over
the next ten years. Marriot and Inter
IKEA believe that the UK and Germany
are the markets with the greatest poten-
tial for the Moxy-concept. However, the
hotels will not be furnished by IKEA,
instead IKEA’s main contribution comes
in the form of construction techniques
which is expected to minimise building
costs. It is the subsidiary Inter Hospital-
ity that will own and develop the proper-
ties and which is also contributing the
estimated 500 million dollar investment
that the company is planning to invest in
the project over the next five years. Nor-
dic Hospitality will be the first franchisee
to operate the hotels.
Rezidor opens a new hotel
in Gothenburg
One of Gothenburg’s largest hotels,
Radisson Blu Riverside Hotel, will open
on the 18th of March 2013. The hotel is
situated on Lindholmspiren on the north
bank of the Göta Älv River, next to Lind-
holmen Science Park. The hotel will
incorporate 265 rooms, restaurant, bar,
spa, gym, pool and treatment rooms.
InterContinental Hotel Group gets
record level price at the sale of
­Intercontinental Park Lane
InterContinental continues to focus on
an asset-light strategy and to reduce
the amount of capital tied up in the busi-
ness. Intercontinental Hotels Resorts
will remain as the operator of the 447-
room hotel through a 30-year manage-
ment agreement with an option for a
second 30-year term. The hotel was
purchased by Middle Eastern investors
at the record price of £301.5 million
which constitutes the largest ever sale
and manageback of a single asset in the
London market.
Oslo’s Fjord City project, is a brand new
urban area, due for completion in 2014,
comprised of 900 flats, 1500 office spa-
ces, 14 restaurants and 15 art galleries
and shops, with the Astrup Fearnley-
museum as its main attraction.
FEBRUARY
A new flagship hotel in Stockholm?
AMF Fastigheter unveils their plan for the
Trollhättan Quarter in central Stockholm.
This is the commercial block which is
home to the Gallerian shopping centre
and, leaving tenant, Swedbank who
rents 50000 m2. In the Trollhättan 33 part
of the block, which is situated along
Brunkebergstorg and currently hosting
Swedbank’s top executives, AMF Fasti-
gheter is planning for a 25 000 m2 hotel
which would make it one of the largest in
Stockholm.
MARCH
Elite opens a new hotel in Gävle
After a substantial upgrade of the prop-
erty that once upon a time hosted the
venerable Grand Hotel, Elite is once
again starting hotel operations in the
property. The property was originally
built as a hotel in 1901 but has over the
last 70 years been used for other pur-
poses. The hotel, which is situated in
central Gävle, offers 124 rooms, of
which 2 are suites, a restaurant and bar,
as well as conference rooms with a
capacity of up to 130 people.
APRIL
Elite opens a new hotel
in Örnsköldsvik
The new Elite Plaza Örnsköldsvik is
located in the city’s tallest building near
the Inner Harbour area. The hotel has
135 rooms divided over 14 floors, as
well as conference facilities and a spa
area, including a gym and a sauna, at
the top of the building. The hotel will
increase the city’s room capacity by
43% – previously there were only a total
of 315 rooms available within the city.
Yet another hotel in Stockholm
The owners of Hotel Stureplan and the
mountain resort Björkliden, LMK-kon-
cernen, are investing in another hotel in
Stockholm. It is the previous office of
the Swedish Export Credit Corporation
on Västra Trädgårdsgatan 11 which is
being redeveloped as Hotel Kung-
strädgården. The property comprises a
total of 2 200 m2.
MAY
Melody Hotel, ABBA The Museum
and the Swedish Music Hall of Fame
is opening
On May 7th, Stockholms latest design
hotel was opened. Melody Hotel has 49
rooms and suites, as well as a bar and
restaurant, and is integrated with ABBA
The Museum and the Swedish Music
Hall of Fame. The Swedish construction
and property develoment company
Arcona owns the property.
market information from Pandox 3

4. Globally, fiscal and monetary measures, stimuli
as well as tightening, have managed to defeat
the most pessimistic predictions of a global
recession and a break-up of the eurozone.
However, the eurozone is continuing to under-
perform, the US is slowing down and China is
experiencing weaker growth than expected.
The world markets are moving slowly and there
is still great uncertainty both on the upside as
well as the downside...
International outlook
US growth was weaker than expected for the first
quarter. The country is still wrestling with a high
level of unemployment, a budget deficit and down-
side risks due to its high exposure to a crisis struck
eurozone. On the upside, the housing market has
improved and barring a severe labour market
downturn, many commentators are saying that
there is a good chance for improvement during the
second quarter and the rest of the year...
In China, GDP grew by 8 percentage points in
2012. Despite the impressive number, it is the
weakest growth since 1999 and below expecta-
tions. The cause is obviously the weaker global
economy but also the fact that the labour supply is
no longer growing.
Within the eurozone, a number of countries are
still fighting with high levels of debt and unemploy-
ment, making the road to recovery seem long and
uncertain. During the fourth quarter, the large econ-
omies in the eurozone came to a halt. In Germany
as well as France and Italy, the crisis of the euro
remains a source of unease and decreases both
consumers and companies’ willingness to invest.
For the fourth largest economy of the eurozone,
Spain, the outlook is even worse. During 2012, the
Spanish economy contracted by 1,4 percentage
points and at the beginning of this year, unemploy-
ment levels have reached depressive new heights
at above 25 per cent with youth unemployment
exceeding 50 per cent. Macro commentators state
that the country makes up the largest single risk
factor for the European economy and the Euro-
pean stock markets.
Outside the eurozone, the UK is wrestling with
weak growth, particularly in the London market. In
general, the recovery of the UK economy from the
recession has been slower than in many of the
other large economies of Europe. Weak demand
from the eurozone, budget contractions and high
inflation, which erases real wage increases, are
pointed out as contributing factors. However, the
second quarter has had a positive start and the
British pound has strengthened on the back of bet-
ter GDP numbers than expected.
The Nordics
The Swedish economy has been widely touted as a
solid exception from the otherwise bleak European
development. Growth during 2010–2012 was fairly
solid given the circumstances. However, things
have changed and according to commentators,
Weak start to the year –
tiny steps towards
a brighter future
Where is the world heading?
Focus on the market
Explanations: RevPAR = Income per room available
View from The Hotel, Brussels
4 market information from Pandox

5. the outlook for this and next year are less promising
with weak growth expected. The global economy is
not providing enough support to sustain the pace
of the Swedish economy and, in addition, unem-
ployment levels are flat lining around eight per cent
which seems to indicate that the recession is hold-
ing its grip for longer than expected.
Weak international demand is also affecting
Sweden with the export industry being hit by weak
growth in important markets. Service providers are
benefiting from domestic demand while industrial
producers, 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 of
the year, the Swedish Krona is up against the Euro,
the US dollar, the pound and the Norwegian Krone.
The Norwegian economy is also showing signs
of weakness. Employment is flat and the export
industry is having to contend with high wage levels
and, like Sweden, a strong currency. Norwegian oil
companies have cut investment forecasts for 2013
and Norwegian businesses have been reporting
lower growth in recent months. Denmark may well
be the country which has suffered the most from
the 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 for
the year is relatively stable, predicted growth is
weak with few bright spots on the horizon.
Hotel markets
US and New York
The American hotel market is continuing to keep
pace with the US economy and is showing positive
numbers with good development during the first
quarter despite the combined calendar effects of
Easter coming in March this year, and being
included in the first quarter as opposed to in April
last year, and 2012 being a leap year.
During the first quarter, RevPAR growth was 6
per cent. Price has continued to drive growth with
support from a strong corporate market.
After previously lagging behind the US average,
the New York hotel market was off to a very strong
start to the year and growth in Q1 was nearly 13
per cent. Contrary to the rest of the US market,
increased occupation rates are driving growth in
New York. In addition, a number of US cities are
showing continuous growth during Q1, however,
none with as strong numbers as New York.
Europe
The European hotel markets are starting the year
pretty much as they ended the last, fractioned and
difficult to predict. RevPAR was flat for the first
quarter with significant differences between coun-
tries, regions and segments.
London ended 2012 on a negative note and the
trend has continued into 2013. RevPAR was down
by almost 6 per cent in the first quarter affected by
both lower prices and weak occupancy. London is
predicted to have negative growth during 2013 due
to the exceptional level of 2012 when the city was
host to a number of large events specific for that
year. The market will also have to absorb a signifi-
cant increase in capacity which came as a result of
last year’s Olympic Games.
Berlin’s hotels experienced a very good 2012,
particularly in the autumn. The year ended with a
RevPAR growth of 9 per cent, fairly evenly sup-
ported by both price and occupancy. The city’s
strong growth was 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. RevPAR for Q1 came in at a positive 4 per
cent.
Paris had a record 2012 which ended with a
RevPAR growth of 9 per cent making them the
European winners in absolute numbers. Growth
during the first quarter was 4 per cent, a level which
is predicted to be sustained during the rest of the
year. Growth is mainly driven by improved room
rates while demand is predicted to keep improving
but at more modest levels.
The Nordics
Growth has been weak in the Nordic countries and
all the capitals are showing negative growth rates
during the first quarter. This is partly explained by
the calendar effects mentioned earlier.
Looking at trends in the tourist market, one can
see that big spending Russians and Americans are
making up the slack created by weak demand from
historically strong markets such as Germany and
Denmark. The tough economic climate in southern
Europe is also clearly visible, overnight stays in
Sweden by Spanish and Italian tourists are down
by 20 per cent in 2012 according to the Swedish
Agency for Economic and Regional Growth.
Stockholm numbers are weak for each month
of the first quarter. The market has lost 8 per cent in
RevPAR in Q1 including more than 13 per cent just
in March. The weak first quarter is partly explained
by calendar effects but January and February also
produced 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

6. The underlying demand has been affected by a
reduction in business travel which has had a nega-
tive effect on prices at the same time as occupancy
rates are somewhat affected by an increase in
available rooms.
The short term trend in Stockholm is negative.
At the end of March, 12-month rolling RevPAR was
down 7 per cent while 3-month rolling RevPAR was
down 8 per cent. Price and occupancy rates are
both to blame. However, previously mentioned cal-
endar effects must still be taken into account when
making comparisons.
Oslo suffered a weak first quarter, just like
Stockholm. The market is showing a 7 per cent
decrease for the first quarter, mainly due to falling
occupancy rates. In addition to the Easter effect,
the Oslo numbers are affected by a significant
increase in capacity during 2012, including the
newly opened Scandic Fornebu with 300 rooms as
well as Quality Hotel Expo and Comfort Grand
Central with 300 and 301 rooms respectively. This
year and in the near future, only a few hotels are
expected to open, including Hotel Thief, whose
119 rooms were opened in January this year.
The short term trend for Oslo points to sinking
prices and lower volumes albeit somewhat more
positive than in Stockholm. Rolling RevPAR for the
last 12 months came in at –3 per cent while the
number for the last 3 months was –7 per cent.
Overall, the Oslo market and its underlying demand
are still stable.
Copenhagen is the star of the Nordic hotel market
at the moment. The start of the year was solid and
level with the end of 2012. At the end of February,
the market was level with 2012 but calendar effects
affected March somewhat, making it drop slightly
below last year. apacity increases are expected to
be limited during 2013 which points to a continued
positive development. In March, rolling 12 month
RevPAR was at 3 per cent while the rolling 3 month
RevPAR number came in at –5 per cent
Helsinki has been affected by the euro crises
and a slowdown in economic activity, which will
probably characterise the hotel market during
2013. In 2012, and in previous years, the hotel
industry has benefited from a long term increase in
Russian tourists but that trend reversed in January
2013 and the numbers decreased by 3 per cent.
During 2012, only one hotel, Scandic Paasi with
170 rooms, opened and there is very little predicted
increase in capacity for 2013.
In March, rolling RevPar for the last 12 months
came in at plus 2 per cent while the number for the
last 3 months was a negative 5 per cent. During
2012, a number of events and occasions, such as
the Ice Hockey World Cup and the European Ath-
letics Championships drove demand. 2013 will not
be as exciting, although the Ice Hockey World Cup
is returning. All in all, the Helsinki market is
expected to show weak growth during the entire
2013.
RevPAR growth
Nordic region 2012
2012
Q1
2012
Q2
2012
Q3
2012
Q4
2013
Q1 Trend
Stockholm –5% 1% 1% –12% –10% –8% Negative
Oslo –3% –7% –5% 0% 1% –7% Negative
Copenhagen 5% 6% 10% 1% 3% –5% Negative
Helsinki 4% 4% 11% 4% –4% –5% Negative
Sources: Benchmarking Alliance (Stockholm, Copenhagen and Oslo), STR Global (Helsinki).
NOK
200
300
400
500
600
700
2013
Q1
2012
Q1
201220112010200920082007
RevPAR
RevPAR, NOK Source: Benchmarking Alliance
Oslo
EUR
50
55
60
65
70
75
2013
Q1
2012
Q1
201220112010200920082007
RevPAR
RevPAR, EUR Source: STR Global
Helsinki
DKK
200
300
400
500
600
2013
Q1
2012
Q1
201220112010200920082007
RevPAR
RevPAR, DKK Source: Benchmarking Alliance
Copenhagen
Scandic Copenhagen
SCANDINAVIAN OVERVIEW
SEK
500
600
700
800
2013
Q1
2012
Q1
201220112010200920082007
RevPAR
RevPAR, SEK Source: Benchmarking Alliance
Stockholm
6 market information from Pandox

7. BERLIN—Representatives from across the hotel
operating sector engaged in a heated discourse on
the Monday during the opening session of the 16th
International Hotel Investment Forum.
At question was the value of brands—or the
lack thereof—as global chains exit from the owner-
ship business and make the transition towards
asset light operations.
“At an investment forum like this, what should
we talk about is really the driver of this industry; we
should not be talking about brands anymore,” said
Anders Nissen, CEO of Pandox AB, which owns
and/or operates 120 hotels comprising 25,000
rooms in 10 countries throughout Europe.
“We should talk about investment, management
skills, who has the best model, and who is running
their 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. We
believed in brands, but we cannot believe in them
anymore.”
The hotel brand companies are focused on only
three things, Nissen said: fostering an asset-light
operating model; building a pipeline to drive more
fees; 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 officer
for Accor, bore the brunt of the verbal assault. He
argued that being asset light does not shield the
global chains from all risk. Accor, for one, still owns
or 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 €600
million in order to get out of its leases, Karaoglanian
could only attempt to downplay the charge.
“What was OK seven or eight years ago is not
now,” he said, arguing that higher operating costs
and lower returns in certain markets have rendered
such agreements as challenging for all parties.
That comment left the door open for Ian Living-
stone, executive chairman of private equity firm
London Regional Properties, who asked why
then would global chains insist on decade-long
management contracts.
“Management contracts for 20, 25 years in the
old way are no longer sustainable. They’re possibly
not even legal under European law,” he stated,
adding that courts might rule them a “restraint of
trade.”
“I don’t know how good hotel brands are going
to be in three or five or 10 years. I don’t know who
is going to own them if there’s consolidation,” Liv-
ingstone said, adding he would prefer a flexible
arrangement with an efficient operator.
Nissen suggested management contracts be
shortened to five years or less. Then both parties—
brands and owners—could re-evaluate and make
adjustments as needed. A truly great brand com-
pany should not have any trouble re-signing such
contracts, he reasoned.
Karaoglanian said owners do have a way out, in
the form of various performance guarantees that
Accor and other brands stipulate as part of their
management contracts.
Marketing machines
Nissen 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 but
gain a better GOP.”
However, Nissen did admit 90% of the group’s
portfolio is branded—purely for marketing and dis-
tribution, he said.
But the outspoken CEO questioned even that
relationship.
“I pay maybe more for the brand than I pay at
the (online travel agency,)” Nissen said. “They start
to be more of a distribution channel … instead of
being a hotel company.”
When asked whether he thought a brand could
aid a potential sale, Nissen was resolute in his
response.
“I have never found any problem in selling an
independent hotel. It’s easier to sell an independent
hotel,” he said.
But Karaoglanian maintained brands do enhance
asset value, pointing to studies and examples in
which properties flying a global chain’s flag sell at
higher prices than similar independent hotels.
“I think a brand is bringing more in terms of price
than in terms of occupancy,” he said.
Story Highlights
• Pandox’s Anders Nissen criticized brands
for exiting hotel ownership, saying they no
longer have any real skin in the game.
• Christian Karaoglanian of Accor argued
brands still have a lot to lose, despite the
push 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 leading
annual meeting place for the
industry. Over 1,700 people from
more than 60 countries and all
areas of the industry attended
this year’s event in Berlin March 4
– March 6. The forum included
interviews with leading hoteliers,
forecasts from top economists,
panel discussions on the latest
developments, as well as trends
and best practice in the hotel and
investment industry. Over 180
speakers took part in the
conference.
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 CEO
by Patrick Mayock • HotelNewsNow.com
market information from Pandox 7

8. ThEMe social projects
His mother died when he was nine and he’s
never seen his father.
Despite having the odds stacked against him
from an early age, Moses Maina, 21, is about to
defeat the odds and leave the slum.
–­Playing handball has offered me the chance
of 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 narrow
passages between the walls of the sheds that
make up Kiawara’s slum are beginning to fill up
with children.
– Living conditions down here are not very
good. People are poor. There are lots of drugs
around and many don’t have a job to go to, says
Moses Maina.
5 000 people, out of the city Nyeri’s 130 000
inhabitants, 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 really
incredible. We help each other with everything.
She is like a mother to me.
He proudly shows us his room, his own shack
of four square meters.
– Please enter. There is room for everyone in
here, he says with a smile.
In the gloomy light, there’s a bed, a bedside
table and up at the ceiling, Maina’s laundry is
drying. The walls are built from wooden scraps
and the cracks are filled with paperboard.
– It’s not exactly soundproof, but I do most of
my homework before I leave school, he says.
He spends as little time as possible in the
room; 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 the
slum, is a small dirt pitch.
– We started playing handball down here. I
was seven years old. The pitch was much bigger
then, but the population is growing and the pitch
is getting smaller and smaller, he says.
The uneven handball pitch has been like a
second home. A place of escape in the middle of
the poorest areas, but also a place for dreams of
a 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 that
different future.
– They have helped me with school fees as I
wouldn’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 gave
me the opportunity to find a meaningful future.
When not training himself, Maina coaches a
team of 12-year old boys from the slum.
– It’s really great to be able to give something
back. I want to show them that you can get away
from here and that is my mission. I want to be a
role 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 physical
labour. It’s easiest to get employment in that
area. But in a couple of years, I want to go to col-
lege. I hope and believe that it’s possible. Then I
would like to start a handball club for the children
in the slum. That would be fantastic.
Moses Maina:
“Playing handball got me
off the street”
Pandox Youth Handball
Movement
• Name: Moses Maina
• Age: 21
• Place of residence: Nyeri, Kenya
• Occupation: Studying the last year at
Rware high school
• Dream: ”To start my own handball club”
8 market information from Pandox

9. ThEMe social projects
During just over one week, the Swedish National
Team coach was teaching Kenyan youth to play
handball as part of the Pandox Youth Handball
Movement project.
– I look back on it with great fondness, says
Staffan Olsson.
At the beginning of February, Staffan Olsson
flew to Kenya and the city Nyeri, three hours
north of Nairobi, to teach Kenyan children and
teenagers 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 of
the joy, interest and dedication to handball.
There is a great love for the sport. That’s what
pops back into my mind and stays with me as a
very strong memory.
The sport gives the youth an opportunity to
learn to work together as a team at the same
time as they are having fun.
– I am convinced that sport itself can help
boys and girls attend school. The main objective
is 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 the
sport is just a bonus, but a really fun one.
What do you think is needed to further
develop handball there?
– Three things: material in the shape of balls
and equipment, structure, and by that I mean
education for coaches and leaders, and, in the
longer term, a league where they can keep play-
ing after they have left school.
What’s your view on Pandox’ continued
efforts?
– I think a mix of knowledge and money is
needed. I am convinced that Pandox has made a
difference and has developed this organisation.
The way I saw it, the added passion and
resources are helping, it goes to good things.
Staffan Olsson:
“There’s great passion
for the sport”
The objective of the Pandox Youth Handball Movement is to create better
future opportunities and purposeful leisure time for children and young
people in the Kenyan town of Nyeri, north-west of Nairobi. The project is
managed in collaboration with Partille Cup, the world’s largest and most
international handball tournament for young people, and the Kenyan
handball club MSG. Further information about the project and previous
articles are available at www.pandox.se/foretagsansvar
market information from Pandox 9

10. Three questions
In 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 is
situated in ? 2 What are the main challenges your
hotel is facing ? 3 From a six month perspective, which are your two
most important business-related issues ?
Frank Senger
Holiday Inn Lübeck
2 Commencing in June 2013, the Hotel will be undergoing a
full renovation process while maintaining full operations.
With this renovation, our Hotel will find a new place in
the market. With a new FB concept and the new design of our
restaurant we also aim to attract the Lübeck locals.
1 Lübeck is the Queen City of the Hanseatic League and a
UNESCO world heritage site.
As a result, Lübeck is visited by both MICE and leisure
travellers and is a well-known destination for Germans and for the
Scandinavian market.
The number of residents remained unchanged last year, in line with
the general demographic change in Germany. The average age has
increased 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 by
20% between 2005 and 2010. Furthermore, Lübeck is a very cultural
city. 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 the
summertime, and during the Christmas period, while also
concentrating on yield management to increase RevPar. Managing
the renovation process to avoid losing revenue during that time.
3
Employed since January 2013.
Background: Considerable international
hotel experience. Has held various man-
agement positions within Mövenpick
Hotels Resorts, Meliá Hotels International
as well as privately owned hotels. Most
recent position: General Manager TRYP by Wyndham, before this,
EAM Meliá Berlin and EAM Mövenpick Resort Thalasso Crete
(Pre- post- opening and Operation).
FACTS | Frank Senger
The Holiday Inn Lübeck (previously Scan-
dic) is centrally located next to the Burg-
tor, in the direct vicinity of the historic city
centre, offering good access to public
transportation, as well as to the most
important companies and institutions of Lübeck. The hotel boasts
159 rooms, a fitness centre, an indoor pool and a business centre.
FACTS | HOLIDAY INN LÜBECK
Frank Rücker
Radisson Blu Hotel, Bremen
2 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 our
guests during this 15 month period.
1 The Bremen market is dominated by several global operating
companies such as EADS and Daimler. The hotel itself is located
right 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 also
in Scandinavia.
On June 1st 2013, The Radisson Blu Hotel, Bremen converts
from another brand. Hence, I and my team are responsible for
the repositioning of the property with its new name and to
increase awareness among guests.
Several marketing activities are already in the pipeline and we
are in the middle of a recruitment process to hire new sales people.
Giving back responsibility and freedom in decision-making to
our employees on site rather than centralising will be one of my
main tasks. I believe in success by working close to the customer
as well as my team.
3
Employed since January 2013.
Background: Degree from Hotel Manage-
ment Academy Koblenz. Has held several
leading positions in FB and ME Sales in
the hotel industry. Became General Man-
ager of the Hilton Garden Inn Stuttgart in
2008. Appointed manager of the Hilton Dortmund,
a Pandox-owned hotel, in 2010. Later, made responsible for the
conversion of that property to Radisson Blu.
FACTS | FRANK RÜCKER
The Radisson Blu Hotel, Bremen (previ-
ously Hilton) is centrally located near
the River Weser on the historic
Boettcherstrasse, the main Bremen
shopping area, and just three miles
from Bremen Airport. The hotel features
235 rooms, a large atrium with restau-
rant and bar, excellent conference facil-
ities, and a swimming pool.
FACTS | RADISSON BLU HOTEL, BREMEN
10 market information from Pandox

11. Jan-Patrick Krüger
Hotel Berlin, Berlin
2 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 been
continuously delayed and has dented the reputation of the city.
1 Berlin is a growing market with an increasing number of guests
travelling to the German capital. However, at the same time, the
numbers of new hotels in all categories are rapidly increasing.
Berlin is a very vibrant city; lively, liberal and outgoing. The corporate
market 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 in
order to take the property to the next level. We aim to further
improve brand recognition and brand awareness to ensure
that we are well positioned in a highly competitive environment. We
also see opportunities in revenue management and to work on
improvements 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 organizational
structure to ensure that we are optimally organized to maintain and
further develop profitability.
3
to four new
hotel managers
Employed since March 2013.
Background: Has held several leading
positions in Sales, Marketing and Rev-
enue Management in the hotel industry.
Became General Manager in 2006 and
opened the new Golden Tulip in Ham-
burg. Moved to Hilton in 2008 and was
appointed to manage Hilton Dortmund,
a PANDOX owned hotel. After this, he
managed the Hilton Dresden, the most
complex hotel operations within Hilton
Europe.
FACTS | JAN-PATRICK KRÜGER
Hotel Berlin, Berlin has a central loca-
tion within walking distance of the
Kurfürstendamm. Featuring 701
rooms, 18 conference rooms, as well
as several restaurants and bars, Hotel
Berlin, Berlin is the city’s third largest
hotel.
FACTS | HOTEL BERLIN, BERLIN
Dieter Ulbricht
Radisson Blu Hotel, Dortmund
2 The main challenges our hotel are facing are the brand
change made at the beginning of the year, and the enhance-
ment of the brand awareness in conjunction with it, as well as
improving the occupancy during off-peak days in the week.
Another challenge is to establish the hotel as a place for meetings
and events on a regular basis and as a leading destination for busi-
ness people working on projects in Dortmund. Furthermore, we
also focus on weekend and leisure business. Soccer, with its local
team Borussia Dortmund, is a very important factor during the foot-
ball season.
1 The market here in Dortmund is a very local market with some
large clients. The key accounts come from various sectors of the
economy including the machine manufacturing industry, insur-
ance companies and energy providers. In addition, areas where old
industries, like Hoesch, were situated are redefined as attractive
industrial areas for start-up companies within new technologies.
These areas are located near the hotel and we are confident that this
will bring more companies to the neighbourhood.
From a six month perspective, improving occupancy rates
and regaining lost market share are the most important busi-
ness related issues.
3
Employed since March 2013.
Background: Started out in 1987 with
Steigenberger, Park Plaza Hotels and
Dorint Hotels, and has held several
positions in FB and Sales- and Mar-
keting in the hotel industry. Became
General Manager for the Resort Hotel
near Berlin in 2007. Moved on to
Cologne as Executive Assistant Man-
ager with Radisson Blu 2008 and was
promoted in 2010 to General Manager
for the Radisson Blu Media Harbour
Hotel in Düsseldorf.
FACTS | DIETER ULBRICHT
Radisson Blu Dortmund (previously
Hilton) is located close to the West-
falenhallen area with considerable
congress, exhibition and sporting
activities. The hotel features 190
rooms, well-developed conference
and banqueting facilities, as well as a
large swimming pool and relaxation
area.
FACTS | RADISSON BLU HOTEL,
DORTMUND
During the last months, all of Pandox’ German hotels have had new
managers. Frank Rücker, Dieter Ulbrich and Frank Senger have taken
the reins at the hotels in Bremen, Dortmund and Lübeck respectively.
These hotels have recently been brought in under own operations and
rebranded. Jan-Patrick Krüger is the new head at Hotel Berlin, Berlin
where he takes over from Cornelia Kausch who after six successful
years is moving on to new challenges.
market information from Pandox 11

12. Read more news about
Pandox at www.pandox.se
After 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 ”All
things fall apart”. 50 Cent plays a young and
successful football player diagnosed with cancer
and for this role he lost 20 kilograms of his
weight in a very short time. The movie is based
on a true story, which featured his best friend in
real life. The German premiere took place on 24
March at the Delphi Film Palace Berlin with the
After Show Party at Hotel Berlin, Berlin. Nearly
500 stars and starlets attended the party, mak-
ing it a glitteringly successful event.
Prize-winning hotel
IHG, was happy to award the Holiday Inn Brus-
sels Airport the ‘Top New Enrolled Revenue Per-
formance’ with BusinessClub Rewards for 2012
in the BeNeScan region!
First Green Globe certified hotel in Belgium
Crowne Plaza Brussels – Le Palace is the first
hotel in Belgium that has obtained the “Green
Globe” certificate, a structured assessment of the
sustainability performance of the hotel and its
suppliers. Being a Green Globe member means
that our hotel saves energy and water resources,
positively contrib-
utes to local com-
munities and its
environment and
meets the high
expectations of
green leisure and
business travellers.
Fantastic suites at The Hotel, Brussels
The creation of four new top-notch suites at The Hotel, Brussels, has recently been completed with the
addition of three Splendour Suites and THE Suite. Now, The Hotel offers 18 elegant and stylish suites. In
addition to the four new suites, The Hotel also boasts 14 Panorama Suites, all fulfilling the most demanding
travellers’ 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 part
of a seating area, plenty of work-space and an en-suite bathroom equipped with a walk in power shower to
dream 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 Antwerp
Crowne Plaza Antwerpen was delighted to host
the Tesla – Electric Car – Model S ”Get Amped”
tour this February. The impressive Motor Trends’
”Car of the Year 2013”, hosted 120 test drives for
their future owners in Antwerp!
Art’n BLOOM at Art Truc Troc BOZAR
With about 17,000 visitors in one weekend, we
can conclude that Art Truc Troc BOZAR was a
huge success. Loads of post-its were written and
stuck next to the beautiful and intriguing works by
different artists.
Of course Hotel BLOOM! was present with an
Art’n BLOOM space in BOZAR. Denis Meyers,
Gregory Verheecke and Freddy d’Hoe got the
chance to show their works to the public and
received some great offers!
Denis Meyers painted live in the Art’n BLOOM
space and got lots of positive responses! He was
offered a week in Malta, a report about his art
For the occasion, Tesla had put together a car
lounge at the Crowne Plaza Antwerpen, with the
Model 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’s
computer 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 of
Tesla 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 offering
specially designed parking spaces? Something
worth considering, we’d say...
works, and more, but he has yet to decide what he
is going to offer in exchange.
Photographer Freddy d’Hoe also had a great
experience at Art Truc Troc! He received lots of
offers to travel in Europe but surely the best offer
was an exposition at the gallery Piece Unique in
Paris! Finally, Gregory Verheecke also received a
number of offers and we can conclude that Art
Truc Troc was a great success for our artists!
You can find more information about the artists on
these websites:
http://www.denismeyers.com/
http://www.gregoryverheecke.be/
http://www.dhoefreddy.com/
Pandox news
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