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Hotel property company Pandox has reported revenues of MSEK 780 (£605m) in Q1 2023, which was up 21% compared to the same period last year.
Net operating income from Property Management amounted to MSEK 662 (£514m), while earnings before taxes were MSEK 675 (£524m), an increase of 45%.
Occupancy levels for Ireland and UK regional, outside of London, were both strong compared with 2022 and 2019. RevPAR for Ireland and UK Regional was up by 34% and 21%, respectively, against 2019 levels, driven mainly by average price.
Despite a strong start to the year, unrealised changes in the value of properties amounted to MSEK -410 (£318), which the group said is mainly explained by increased yield requirements.
In addition, during the first quarter Pandox acquired The Queens Hotel in Leeds as well as invested MSEK 235 (£182m) in properties, including the £31m renovation of Leonardo Royal Hotel Birmingham.
Liia Nōu, CEO, said: “Pandox’s growth was good, and our cash flow was strong. For comparable units, net sales and total net operating income increased by 47 and 41 percent respectively, compared with the corresponding quarter the previous year – a quarter that was impacted by pandemic restrictions.
“During the quarter we acquired The Queens Hotel Leeds within the Operator Activities segment and Best Western Hotel Fridhemsplan within Property Management. Both of these acquisitions had attractive prices and good yield levels.”
Nōu continued: “Up to now, in April, both hotel demand and average price development have been good in most markets. There is still recovery potential in business and international travel. At the same time we are seeing stronger trade fair and exhibition calendars than in 2022 in important markets. Our cautiously optimistic view of the hotel markets in 2023 still holds.”
