1. PA N D O X
NO. 1 • 2009
M ARKE T IN FO R MATIO N F R O M PA ND O X ON E OF T H E L E A DI N G H OT E L P ROP E RT Y C OM PA N I E S I N E U ROP E
Will established hotel companies
throw in the towel this year?
Twitter
– the new and smart way of marketing

2. Market information from Pandox
NEWS
Will established hotel companies
throw in the towel this year?
Jones Lang LaSalle’s excellent Hotel Investment Highlights show that the global
financial crisis has now also spread to the transactions market for hotels and
hotel properties. Overall business volume has fallen by no less than 80 percent
between 2007 and 2008. It is mainly the major portfolio business that has come
to a halt, but also the number of individual asset purchases has dropped drasti-
within the world
cally. Of course, this is because of a poorer hotel market, but also because inves-
tors, often non-industrial, have left the sector. In addition, the shortage of avail-
able finance is creating major problems and having an adverse effect on liquidity.
If we look at individual regions, America fell by 81 percent, followed by Asia
November Rezidor is opening its second Park Inn in
Berlin together with its franchise partner
with 77 percent, while EMEA which includes Europe fell by 58 percent. Another Bella Center is building the biggest hotel in Proventhotels. This hotel is located in the
interesting comparison is to monitor the trend for individual hotel transactions, the Nordic region in Ørestad, Copenhagen. Wilmersdorf district and has 94 rooms.
measured in value per room. This has fallen by around 25 percent over the The two towers, with 814 rooms, will be 76
period 2006 to 2008. Of course, these figures are not entirely comparable; but metres high. This hotel will
A new Stay At hotel is being built in Malmö, in
they do provide an indication of the fact that the values are about to be adjusted be incorporated into Bella
south of Sweden. This hotel, which will have
from the peak levels people were willing to pay a few years ago. Some more cor- Center, and it is thought
243 rooms 9–20 sq m in area, is located at
rections will probably be needed before liquidity increases again. Important that it will open over the
Fasanen 5, Kaptensgatan 11 in Malmö, with
first quarter of 2011.
parameters for ensuring correct future values is that these have to be based on views over Malmö canal. This hotel is planned
cashflows created in the current hotel market, and not on historical figures. to open in 2010.
Another influencing factor is finance terms – one hot tip is that loan to value will Corinthia Hotels is planning to open a 283-
fall and costs for capital will rise, then values will also fall. At the peak of this, this is room, five-star hotel near Trafalgar Square in
Marriott will be opening a second Courtyard
where the uncertainty will arise; when valuing many of the operator-friendly man- London in 2010. This will be the first Corin-
hotel in St. Petersburg, Russia, with 281
agement agreements. What risk perspective should investors adopt when acquir- thia Hotel in the UK, and the property will
rooms. The plan is for the hotel to open late
ing a hotel with a long, one-sided management agreement, where the hotel com- also include a number of luxury apartments.
in 2009 or in early 2010, not far from the
pany has few incentives and a poor track record as regards profitable operations? Marinsky theatres.
The latter question was discussed in Berlin at Investment Forum, Europe’s Scandic is introducing cooperation with the
biggest investment conference for the hotel and hospitality business. It is inter- world-leading travel guide company Time
Hilton is opening a new hotel at historic
esting to note that international hotel companies, such as Hilton and Sheraton, Out. This company is going to produce a
Syon Park in West London. This hotel will
still has what is known as a light investment strategy, which means that they do guidebook under the name “1,000 things to
have 151 rooms and is estimated to open
not want to participate in the investments or issue guarantees in the agree- do when staying at Scandic”, which will be
just before Christmas 2009. Syon Park is
ments they enter into in order to have the right to run hotels. It seems to be the released in five languages English, Swedish,
located on the opposite
case that these companies and investors live in different worlds. It is reasonable Danish, Norwegian and Finnish in March
side of the Thames to
to assume that the owner perspective will grow once again and that risk sharing 2009.
Kew Gardens and is a
will become one of the key concepts for successful investments. 16th century park over
2009 has got off to just as bad a start as the most negative forecasters had Interstate Hotel & Resorts has entered into around 200 acres.
predicted. I am one of them, and I have to admit that most of the arrows are an agreement to run a 300-room hotel at the
pointing in the wrong direction at the moment. What scares me is the fact that new Freestyle Park shopping and leisure
In 2009, Reval Hotel will be opening a
we do not know what the next nasty surprise is going to be. Rumour is that centre in Moscow. This building will be
four-star hotel in the heart of St. Petersburg.
many hotel companies have a lot of what are known as covenants, guaran- 280,000 sq m in area and include among
The design of the hotel is said to have been
tees, towards banks that they have to fulfill, otherwise the banks will increase other things a ski slope, a science museum
inspired by one of the heaviest classics in
the pressure. What if an established hotel company has to throw in the towel and cinemas, if the plans are finalised.
world literature – Crime and Punishment by
because it is unable to meet the banks’ demands for market values and Fjodor Dostoyevski. This hotel will be Baltic
equity ratio. What domino effects would this have on the rest of the industry? Quality Hotell 11 in Gothenburg, in south of chain Reval Hotel’s first hotel in Russia.
Sweden, is being acquired by Home Proper-
All the best ties. The property consists of 260 rooms
Anders Nissen over 15,800 sq m, 9,800 sq m of offices, January
and Eriksbergshallen, 5,300 sq m in area
PS. Thanks for all the cheering messages which were sent by reason of – an events hall for up to 2,000 people. Hilton is opening the Trianon Palace Ver-
Pandox’ is contributing to maintain the Swedish Handball National Coach sailles, which will be the first hotel in the
Staffan Olsson as captain in Sweden through the 2011 World Champion- Waldorf Astoria Collection in France. This
Rezidor is planning to locate a Park Inn in hotel is located less than 2 km from the Pal-
ships. We are incredibly pleased and proud to be able to help out with this, Tula, Russia. This hotel will have 190 rooms ace of Versailles and 20 km from Paris.
and we know that Staffan will be helping us with marketing activities. and is intended to open in the first quarter of
2011.
Rezidor has contracted Park Poliarne Zori in
Murmansk, Russia, with 266 rooms. With
Pandox Upgrade – market informa- Graphic design and production:
tion from Pandox – published n3 Kommunikation December this agreement, Rezidor has almost 10,000
rooms in operation and development in
approximately three times annually. Russia and the adjacent states.
Photo: Golden Tulip is opening a new hotel in coop-
Editors: Ulf Blomberg, Shutterstock and others. eration with IKEA in Delft, the Netherlands.
Anders Nissen, Michaela Borg, This will be a 140-room, three-star hotel.
Printer: In January, InterContinental Hotels Group
Annelie Sundström Aguilar, The new restaurant concept George & Co,
Jernström Offset, (IHG) will be opening its first hotel outside
Anette Paulsson which will be offering an international menu,
Stockholm, April 2009. North America under the Indigo brand. This
Pandox AB will be launched at the same time.
Reproduction only by permission hotel is located in Paddington in London
P O Box 5364 and has 64 rooms. The objective is to open
from Pandox
SE-102 49 Stockholm Choice Hotels Scandinavia is continuing its another three Indigo hotels in central
Tel: +46(0)8 506 205 50 Front cover: The Pandox-owned expansion in Sweden under the Clarion brand London by 2012.
Fax: +46(0)8 506 205 70 Hotel Berlin, Berlin in Germany with a major new hotel at Arlanda Airport, out-
E-mail: pandox@pandox.com side of Stockholm. This hotel will have around
Linköping in central Sweden is about to open
400 rooms and be located directly next to Sky
Visiting address: a Best Western hotel. The hotel Good Eve-
City and the airport terminals. This is planned
Grev Turegatan 44, Stockholm ning Linköping is changing its name to Best
to open sometime in 2012.
Western Hotell Linköping in March. A certain
Upgrade can be ordered from Pandox or read online at www.pandox.com
2

3. Market information from Pandox
The market on the market
amount of renovation work will be taking
place at the hotel, which has 74 rooms,
March
until it reopens. Story Hotel will be opening on Riddargatan
in Stockholm, the capital of Sweden. This
will offer 82 rooms, of sizes varying from
Kungsbacka, outside Gothenburg, will be
12 to 53 sq m. This hotel environment
getting a new hotel in the spring of 2010. A
takes its inspiration from ramshackle New
new property is being built at the location of
York bars and bohemian Parisian hotels. Jonathan Worsley, Chairman, Bench Events and Chairman of the Board, STR Global, is seen
the old Tullhuset, hence the historical link in here with Anders Nissen of Pandox at Hotel Berlin, in Berlin at the Pandox Opening Party.
the name “Clarion Collection Hotel Tullen”.
This hotel will have 88 rooms. The Baltic group is entering the hotel
industry, buying Stora Hotellet and Hotell
Wasa in Umeå, north of Sweden, from its
Hotel Investment Forum
February current owners, Gunnar Leissner and Berlin, 9–11 March, 2009
Kalle Ekkari. This deal will be finalised on The main topic of discussion at this year’s The second day then looked exclusively
Radisson SAS is becoming Radisson Blu. 1st May 2009. The hotels have 90 and 96 conference was the enormous uncertainty at the industry and the difficult situation it
First to change its name will be the new rooms respectively.
prevailing around the world, which is faces. James Chappel, Managing Director
Radisson hotel at Zurich airport, which will
affecting the industry. The 2008 financial of STR Global, presented the current situa-
be named Radisson Blu Zurich Airport.
The changes of name will take place grad- year was discussed in fairly brief terms. tion in figures. All the statistics are pointing
ually, and it is thought that these will be What emerged above all was the fact that down, in a big way. Between November
complete in 2010. the past year has to be viewed as two sep- 2008 and January 2009, all regions have
arate periods; January to August was a fallen in terms of both coverage and price,
Hilton is launching a new brand, “Denizen very good period, which was then followed and the biggest downturns in Europe have
Starwood Hotels is planning to open its first Hotels”, and will become a global lifestyle by four months when the bottom dropped been seen in Spain, Italy and Eastern
W hotel in France, in the heart of Paris. The brand to supplement its existing luxury out of the market. Europe. Discussions dealt with what the
idea is for the hotel to open in 2011 and brands. This new brand will be aimed at curve for the downturn will actually look
offer visitors an extravagant refuge, stylishly modern global travellers. The hotel environ- This year’s seminar was the twelfth of its like. Have we embarked upon a V-shaped,
designed. This hotel is going to be built in ment is a luxurious mix of business and U-shaped or L-shaped business cycle?
kind. There were fewer delegates present
the historical Haussmann building, dating pleasure, with the very latest in technology. During the panel discussion with heads
this year: around 1,300 as opposed to the
back to the 1870s. These hotels are also designed to reflect previous record of 1,800. The conference of industry, some general advice was given
local culture and style in the cities where began with a macroeconomic analysis for on how we should all work and manage
Marriott is converting the old Midland they are located. the whole world. Roger Bootle, Managing hotel operations during these hard times.
Grand Hotel at St Pancras railway station in Director at Capital Economics, London, We should maintain clear, transparent lead-
London into a 244-room Marriott Renais- InterContinental Hotels Group (IHG) is open- and Dr. Holger Schmieding, Chief Econo- ership in order to keep employees informed
sance hotel. This hotel is intended for ing a new Holiday Inn in Moscow. This hotel mist for Europe at Bank of America in and motivated. We also need to clearly offer
opening in late 2010 and will also include will have 1,000 rooms and be the biggest IHG London, illustrated the current situation. customers value, and customers also have
67 apartments and a penthouse. hotel in the world. This hotel will be opening To summarise: in Dr. Schmieding’s view, to see that they are getting this value. If we
in 2014 and will be the eighth IHG hotel in the American market does not have so far to are considering adjusting our prices, such
Moscow. go before it reaches the bottom, and the measures should be preceded by thorough
London will be having a new, five-star
economy will stability in the autumn of customer segmentation.
luxury hotel at the old Café Royal premises
on Regent Street. This hotel will have 160 2009, or possibly spring 2010. This will The second day came to an end with a
Rezidor is opening a new hotel in Edinburgh,
rooms and views over Piccadilly Circus, Big gradually improve the situation for Europe launch party, organised by Hilton for its
Scotland. This fashionable hotel, which will
Ben and St. James Park. A lot of the as well. As things stand at present, however, new lifestyle brand “Denizen Hotels” –
be located on the corner of George IV Bridge
existing environment will be incorporated it looks as though 2010 will also be a tough a global brand with a local touch. This
and the Royal Mile, will have 136 rooms and
in the property, such as the marble year for Europe, with negative growth. product is designed for business and
welcome its first guests in late May. The staff
Entrance Hall and the Domino Room. This What will affect the recovery, according leisure travellers who are happy to use
will be wearing clothes designed by Missoni.
project is planned to start in the summer of to Roger Bootle, is that consumers will new technology and much comfort.
2009, with completion before 2012. regain their confidence in the market and On the last day, Russel Kett Managing
The Bentley Hotel in London is to become start buying, loan options will improve and Director of HVS spoke about HVS’ view of
a Waldorf Astoria hotel. This will be the first countries will avoid being protectionistic. the transactions market and the world of
In 2009, Metromark Hotels will be opening hotel of its kind in the UK and the third in property. He explained that the party is over
Dr Holger Schmieding was of the view that
in Malmö, south of Sweden, the world’s first Europe after Rome Cavalieri in Rome and the major downturn we are seeing now on for now. The investment market in Europe in
hotel using only environmentally friendly LED The Trianon Palace in Versailles, outside the market may be an advantage. “We will 2008 fell by almost two-thirds compared
technology for lighting. They are working on Paris. This hotel has 64 rooms and suites reach the bottom more quickly and can with 2007, which means we are now at the
creating a new and is located in the heart of the Royal start to work our way up from there.” His same levels as after the 9/11-attacks in
hotel chain going Borough of Kensington & Chelsea. view was that “bottom fishing” may com- 2001. Furthermore, the number of transac-
by the name of
mence as of the late autumn of 2009. tions has fallen by a third compared with
Moment Hotels,
The first day of the conference was 2007, and there has been a shift away from
with a concept
rounded off with a reopening party for Hotel major portfolio investments and more
involving interac-
Berlin in Berlin. Pandox organised the eve- towards the purchase of individual proper-
tion between
functionality, ning in honour of traditional Swedish Mid- ties, particularly in the autumn of 2008.
economy and summer celebrations, with a real midsom- The conference ended with a panel
design. marstång (Swedish-style “Maypole”), a pic- debate where the big question remained
nic where Swedish Midsummer delicacies unanswered: what indicators will show
were served, and a show inspired by ABBA. that we have reached the turning point?
3

4. Market information from Pandox
Focus on the sector
2008
– a year of contrasts
2008 really was a year of contrasts.
The industry showed good growth in both occupancy and average price up until the summer,
but then the international downturn began, starting in the USA.
USA RevPAR; due largely to lower volumes mark on Europe and occupancy in whole, an increase of 4 percent. The
The American market, which is first in than in the same period last year. the major European cities plum- last quarter of 2008 for Berlin was still
the business cycle, shows a downturn New York fared slightly better for the meted. The declining trend has since showing marginal RevPAR growth of
in occupancy for the full year of just full year in 2008, despite a weaker persisted into the new year. Occu- 1 percent, but the decline has started.
under 3 percent compared with 2007, autumn than the rest of the USA. Occu- pancy in London at the end of 2008 January/February 2009 is showing a
stopping at 60 percent. Average pancy in the city fell by just under 2 per- amounted to just over 80 percent, decline of 9 percent in RevPAR com-
prices closed at USD 107, corre- cent, while prices increased by 2 per- which is equivalent to a reduction of pared with the same period in 2008.
sponding to an increase of around 2 cent; hence RevPAR closed on plus 1 just under 2 percent compared with Throughout the rest of Europe,
percent compared with 2007; so Rev- percent. Occupancy closed at 82 per- the previous year. Average prices over many hotel chains found that both
PAR for the USA as a whole closed at cent, and average price at USD 276. the year have continued to rise, albeit demand and profits started to fall over
minus 2 percent compared with the A study of the last quarter also con- at a slower pace, and they were up 4 the late summer. Occupancy fell in
previous year. firms this view for all of the USA. Rev- percent for the whole year. RevPAR many of the major tourist cities, due
A more detailed analysis of the last PAR is down 15 percent, and this is closed at GBP 108, which is an mainly to tourists failing to come over
quarter of 2008 shows that develop- because both occupancy and the aver- increase of just over 2 percent com- from North America and Japan. The
ment is considerably gloomier than age price are falling to around the same pared with 2007. The last quarter in following autumn was no better.
the annual figures show. RevPAR for extent. For the period January/Febru- London, however, is clearly weaken- Paris closed on occupancy of 78
the USA as a whole has fallen by ary 2009, the decline continued with a ing; RevPAR for the period fell by 6 percent, which was down 1 percent on
almost 10 percent over the period. If RevPAR for the period of minus 29 per- percent compared with the same the previous year. Price growth was
we look at various segments, the cent compared with the same period in period in 2007 – due mainly to declin- considerably more modest for 2008
luxury segment is the one showing the 2008. Occupancy fell by 16 percent ing occupancy. The rate of decline than for 2007, closing at just under 2
most decline, 17 percent, closely and average prices were down 16 per- then increased in January/February, percent over the price level for 2007
followed by the resort segment, down cent. Despite the gloomy figures, there when RevPAR fell by 9 percent. The and at an average price of EUR 242.
14 percent. Above all, occupancy is are a number of new hotel projects in loss of coverage and price affected RevPAR closed at EUR 188, represent-
falling and the trend is the same in all the pipeline in New York, which means the results to an equal extent. ing an increase of just under 1 percent
segments, irrespective of region. that the city will have around 11,000 Germany is one of the countries that compared with 2007. However, the last
The figures for the period January/ new hotel rooms by the end of 2010. has fared better during the global quarter of 2008 showed a major
February 2009 are showing that the downturn in 2008. This is largely decline for the city, with a reduction in
pace of decline is increasing. The Europe because Germany has a higher RevPAR of 20 percent for the quarter,
decline for the period amounts to 16 Over the first six months of 2008, national demand for hotel rooms com- 13 percent of which was attributable to
percent in RevPAR compared with development on the European market pared with many other countries. Berlin lower average prices and 8 percent to
the same period in 2008; 10 percent was still good, with a development in closed on 70 percent in terms of occu- lower occupancy volume. The down-
is due to a reduction in volume and 6 RevPAR of between 5 and 15 percent pancy, which is 2 percent lower than in ward trend has continued in the new
percent to falling prices. The luxury compared with 2007. Then came the 2007. Average prices amounted to year. RevPAR in January and February
and resort segments are seeing the turning point with the financial crisis EUR 91, which was 6 percent higher closed at minus 23 percent, which is
greatest decline over this period, with in the USA, which has spread across than in 2007. RevPAR in Berlin closed due to lower prices and reduced
26 and 21 percent respectively in the globe. In September, it left its at just under EUR 64 for 2008 as a occupancy in equal measure.
4

5. Market information from Pandox
2008 was a turbulent year – the question is, where in the roller coaster are we now?
Brussels ended the year with a Stockholm and Oslo started their Rev- minus 13 percent, and January is PAR growth for the year of 5 percent,
RevPAR increase for the whole year of PAR decline at around the same time showing a RevPAR of minus 17 due entirely to price growth, and the
6 percent, which was due mainly to as London in September/October, and percent. last quarter of the year also showed
price increases. However, the growth RevPAR for these cities fell by around growth. For January 2009, Malmö
trend was broken back in October, 6 percent for the fourth quarter. Regional cities, Sweden fared slightly better than other regional
and RevPAR for the last quarter Helsinki fared slightly better over the Gothenburg, which managed fairly cities with a RevPAR reduction of 8
showed a reduction of 9 percent quarter, with a RevPAR which fell by well in previous periods, is now follow- percent for the month, which was due
compared with the fourth quarter of just under 5 percent. January has not ing the global trend, and in the autumn mainly to a reduction in occupancy
2007. This downward trend con- shown any stabilisation; rather, the of 2008 it saw the same decline in compared with January 2008.
tinued in January and February 2009. rate of decline is increasing slightly for RevPAR as Stockholm – that is, minus The figures are gloomy more or less
RevPAR has come out at minus 16 the Scandinavian capitals as well. 6 percent for the fourth quarter. For across the board. Viewed from a
percent for the period, due mainly to Copenhagen, on the other hand, is the full year, RevPAR has closed at 3 historical perspective, credit crunches
a reduction in occupancy. losing out in a big way, primarily in percent, due mostly to price increases. normally last for 24–30 months. So we
terms of occupancy. This began back In January 2009, Gothenburg lost 19 will have to wait and see whether
Scandinavia in October and has continued until percent in occupancy and just under 2 history is repeating itself – or whether
As a rule, the Scandinavian countries January 31, 2009. Occupancy has percent in average price, resulting in a the pattern will be different this time?
follow London when it comes to the fallen on average by more than 10 per- RevPAR reduction of 21 percent on
economic situation of hotels. The cent compared with the same period of January 2008. Explanation:
autumn of 2008 seems to be the rule the previous year. This has resulted in Malmö has still done fairly well. At RevPAR: Revenue per available room.
that confirms the exception. RevPAR for the last quarter standing at the end of 2008, the city had a Rev- YTD: Year-to-date.
RevPAR CHANGES IN LOCAL CURRENCY
World Whole year 2008, % 4th quarter – 2008, % YTD Feb 2009, % Scandinavia Whole year 2008, % 4th quarter – 2008, % YTD Jan 2009, %
New York 1 –15 –27 Copenhagen 0 –13 –17
London 2 –6 –9 Malmö 5 2 –8
Dubai 1 –5 –32 Gothenburg 3 –6 –21
New Delhi 6 –7 –39 Oslo 2 –6 –17
Sydney –1 –5 –11 Stockholm 3 –6 –15
Beijing –1 –34 –43 Helsinki –1 –5 –16
Tokyo –1 3 –10
São Paulo 14 15 –8
Buenos Aires 13 1 –8
5

6. Market information from Pandox
Pandox market barometer
January 2009
The market barometer indicates the selected cities’ position in the business conditions, how the hotel market is evolving, and the extent to which the hotel
cycle. The assessment is based on an analysis of each city. Consideration is property market is developing and has liquidity. It is important to note that the
given to macro-developments, the trends of the hotel industry and business hotel business cycle is the same in its pattern but different in time.
BRIEF DESCRIPTION OF THE VARIOUS PHASES OF THE HOTEL BUSINESS CYCLE:
GROWTH b Occupancy is rising relatively rapidly and rates have begun to increase. High WEAKENING DECLINE c The decline tapers off and RevPAR gradually levels out. This
potential and low risk. phase is characterised by some potential and high risk.
PEAK h Occupancy continues to rise and rates increase above inflation. Strong potential LEVEL OUT v Occupancy rises and rates remain unchanged. High potential with a
and low risk that gradually increases to high risk. diminishing risk.
DECLINE x Occupancy and rates decline due to lower demand or excess capacity. This
phase is characterised by low potential and high risk.
SWEdEN
PEAK h x dEcliNE
Malmö, Karlstad, Uppsala Sundsvall, Luleå, Umeå, Stockholm, Stockholm 5*,
Jönköping, Gothenburg, Helsingborg, Lund
groWTh b c WEAKENiNg dEcliNE
v lEvEl ouT
Comments – Sweden
As the economic situation took an peaking over the three months. This is January 31, 2009. The municipalities and Karlstad have also entered the
unusually rapid dive in the autumn, because average prices are still of Stockholm and Gothenburg are decline phase now. The only excep-
we have this time chosen to focus on increasing slightly, while occupancy is demonstrating a fairly constant down- tion is Uppsala, which is balancing
the shorter-term trend over three more or less in line with the same ward trend with a RevPAR develop- out. Occupancy is increasing here by
months; November 2008 to January period last year; hence RevPAR is still ment over the three months of minus nearly 2 percent, average prices are
2009, instead of the longer, twelve- increasing slightly. 12 and 11 percent respectively. Other falling by about the same amount.
month approach used for earlier Other selected cities have entered cities have also passed the peak now, This means that RevPAR is in line
barometers. This is because we want the decline phase of the business and in most cases both occupancy with January 2008.
to make the illustration of the situation cycle. Stockholm 5* has seen the and prices are on the decline.
as current and as relevant as possible. most severe downward trend, with a A review of January on its own
Malmö, Karlstad and Uppsala are RevPAR development of minus 18 shows that the rate of decline is
the three major cities which are still percent over the three months up to increasing in all cities, and Malmö (Sources: Nutek and Statistics Sweden)
iNTErNATioNAl
PEAK h x dEcliNE
Berlin, Oslo, Helsinki, London, Brussels,
Paris, Copenhagen, Vienna, Amsterdam, Prague
groWTh b c WEAKENiNg dEcliNE
v lEvEl ouT
Comments – International
All the major cities in Europe are in minus 24 percent. It is mainly the fared best, with a decline of 6 here, too, with negative RevPAR for the
decline. If we look at average develop- occupancy that has fallen in both percent. month of minus 25 and minus 22
ment over the three-month period, cases, but prices have also started to Development for January is showing percent respectively compared to the
Amsterdam and Prague are seeing drop. Paris is hot on their heels, with a only that the rate of decline is increas- same month in 2008.
the biggest decline in RevPAR for the decline of 20 percent for the period. ing across the board. Amsterdam and (Sources: Deloitte, Statistics Norway
period November to January, with To date, Berlin is the city that has Prague are seeing the greatest declines and Statistics Finland)
6

7. Market information from Pandox
Trends in time
Focus on the right things during the credit crunch
The economic crisis is spreading one is a function and the other is a million users all over the world. “Hotel Murano won the HotelWorld
throughout the market. Strength is purpose. Besides sharing your own updates, award for best lobby/public space
needed if we are to continue, and Be keen to make sure your you can monitor other people or com- design in a full-service hotel.”
we need to do this in the correct customer is happy. This is one of panies in order to view their informa-
way. Every step becomes even more the advices which Bryan K. Williams tion. Stowe Boyd, the internationally “Stop by our Lobby Bar tonight to
important when times are hard. gives to organisations wishing to renowned authority in business strat- visit Debra. First person to mention
become more service-oriented. The egy and information technology, reck- this tweet will get their first drink
When times are good, it is easy to staff have to be on their toes and ons that people should monitor at on us!”
overlook a mistake or two. But during always prepared to help customers. least 100 people on Twitter.
a downturn, one incorrect move can Be welcoming and create an atmo- A number of hotels and hotel All methods are good, except for the
spell disaster. It can reduce profit- sphere of “inclusion” are another companies have already started bad ones. Bearing in mind that “out
ability, destroy customer relations two advices from Mr. Williams. working on Twitter. Both Luxor in Las of sight, out of mind”, Twitter is a
and, in a worst-case scenario, wreck An atmosphere of “inclusion” Vegas and Marriott International have new must. And in a credit crunch,
the brand name. means involving all parties con- more than 3,000 followers. But the committing to producing 140 char-
Cutting costs is a common way cerned. Try to create a relationship Brussels Welcome Hotel, with just 18 acters a day should be a simple
trying to regain control in bad times. which reflects dynamic, two-way rooms, is also active on Twitter and decision to make.l
However, focusing on income is communication rather than static has more than 550 followers.
every bit as important. Offering delivery of a situation or a service.
outstanding service and making There is a difference between a waiter Check the information flow and
yourself visible are two simple ways asking what a customer would prefer free marketing
of winning out in hard times. and then suggesting something from The advantages of Twitter are that it
the menu, and a waiter who just goes is free to use and it takes hardly any
Improving service up to the table and takes an order. time to manage. The service content
Outstanding service reinforces is picked up by Google and so is
customer relations. The likelihood of Start microblogging passed on even further. The hotel
them choosing your hotel next time is Apart from enhancing the quality of industry is using this service to com-
much greater than if you just do what the service, you can now also municate with customers and for
they expect of you. Service mogul enhance your marketing – without marketing purposes. A view pub-
Bryan K. Williams explains it by paying a penny. After blogging and lished by an unhappy customer on
asking: What is the difference Facebook, comes Twitter. Twitter is the Internet can be rapidly inter-
between a doorman holding a door a microblog in which every entry, cepted and rectified, and hence
open for you – and a doorman known as a tweet, is allowed a damp down any rumours.
welcoming you with a nice gesture? maximum of 140 characters. This More typical marketing Twitter
Or, what is the difference between is a new way of creating contacts entries may include offers, current
the house keeper changing the and keeping up to date. events at the hotel, or weather
sheets and the house keeper making Interest in Twitter has grown at a reports. Hotel Murano in Washing-
sure that the guest has a clean, record-breaking pace, and now the ton is being followed by 260 people Luxor Hotel in Las Vegas microbloggs at
comfortable bed to sleep in? Well, service has between three and six and has written the following: Twitter, being followed by 3,000 people.
did you KNoW...
… you can now stay in hotel rooms 155 metres
below ground at Sala Silvergruva (Sala Silver Mine),
…you can now enjoy an atomic bomb-proof Christ-
mas meal at “Lejonkulan Fest & Konferens” – in a
Sundry facts from various
corners of the hotel world
visitors into a huge rock chamber with crystal chande-
liers hanging from the ceiling. There is a dining room,
in central Sweden. With this, the mine has earned converted old defence centre blasted into the rock at conference room and assembly room, and in the
its stripes as an “Unusual Hotel Of The World” – in Laggarebacken near Alingsås in southern Sweden. longer term hotel rooms will be on offer as well. Mobile
good company with the Jumbo Jets youth hostel at From the outside, this place really looks like nothing phones do not work inside Lejonkulan because above
Arlanda airport, north of Stockholm. special, but a corridor 50 metres long then takes the vaulted ceiling is 24 metres of solid rock.
… there is now a hotel for the true individualist; the … new ways of building hotels are being tried.
Hotell Winvian in Connecticut, USA. Here, 15 Uxbridge, West London, is home to the first
renowned architects have created the ultimate European hotel made out of containers. This 120-
hotel rooms. Among other things, there is a room room hotel is made up of 86 steel containers. The
built like a model of a Sikorsky HH37 Sea King double rooms consist of containers 5 x 3 metres in
Pelican helicopter – but with a built-in bar. Other area, while larger family rooms are 3.5 x 6 metres
themed rooms are a stable, a greenhouse, industry in size. These containers come from China, with
and a log cabin. www.winvian.com bathrooms and windows already fitted.
7

8. Market information from Pandox
News from the Pandox sphere
Pandox at IHIF in Berlin
At the annual International
Hotel Investment Forum
(IHIF) conference, Pandox
worked together with Pandox-
owned Hotel Berlin in Berlin
to arrange the IHIF Opening
Reception. The topic was
Swedish Midsummer celebra-
tions, with food in picnic
baskets arranged by two of
Sweden’s most famous chefs:
Melker Andersson and Danyel
Couet. The evening was a big
hit, with a sing-song, creative The Hotel Berlin and Pandox Famous chefs: Danyel Couet and Melker Andersson from
hotel design and a show Midsummer-inspired celebration Christian Ringnes, Chairman of GRUPP F12 in Stockholm.
inspired by ABBA. at IHIF. the Board at Pandox, and
Anders Nissen, CEO at Pandox.
Two new awards for Hotel BLOOM! Staffan Olsson to captain
In December 2008, Hotel BLOOM! received the CAÏUS 2008 Award for team at World Championship
companies contributing towards cultural and architectonic development in Sweden in 2011
in Belgium thanks to their creativity, dynamism and persistence. In With the support of the Swedish
February, Hotel BLOOM! also received the Best Venue of the Year Award Olympic Committee, and together
from Meeting Professionals International, Belgium Chapter, which has with Pandox, Swedish Handball
more than 24,000 members in 80 countries. Congratulations! Association entered into an
agreement with Staffan Olsson
which makes it possible for him
to stay in Sweden and continue
leading the Swedish national Staffan Olsson, National coach for the
team together with Ola Lindgren. Swedish Handball team.
This agreement means that the
important issue of who will be the team captain is resolved with regard
to Sweden’s World Championship on home turf in 2011 and, in the
longer term, to the Olympics in London in 2012. This resolution also
means that Staffan Olsson will be continuing as a trainer for Hammarby
Handball as well as working with marketing issues at Pandox.
Warm welcome to Pandox!
an
tw
New members of the family at Holiday Inn Brussels Airport Restaurant Thott’s in Malmö
Ber erp
Early in 2009, Holiday Inn Brussels Airport welcomed some new
members to the family: Blobby and her two little ones. They have their
awarded Silver in Swedens Best
Table Bru
s
LIn
e n hs e L s
own little spot in the lobby and move positions every day. This little Radisson SAS Blu’s restaurant
cop
Lon
family is much appreciated by both guests and staff. Thott’s in Malmö has been awarded
Silver status in Sveriges Bästa Bord,
age
“Sweden’s Best Table”. Warmest
congratulations to new kitchen mon
n
don
manager Björn Nilsson, restaurant
tr
sto
manager Peter Kindeberg and rest
ckh eaL
of the team!
pa n oLm
Radisson SAS Arlandia
This hotel outside Stockholm is
r e
p o
r t
i n
g
o f
b u
s i
n e
s s
dox
o p
e r
a t
i o
n s
continuing its environmental aware- f o
r
2 0
0 8
ness initiatives with an extensive
training programme for staff, new Annual report 2008
company cars running on biogas The Pandox annual report is now
and ethanol, and ensuring that all completed and can, as usual, be
consumables nowadays bear envi- viewed on our website or ordered
ronmental labelling. Very inspiring! from pandox@pandox.com
8