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Grade                                                                                                     #      2           2012
     M a r k e t I N F O R M AT I O N F R O M PA N D O X – O N E O F E U R O P E ’ S L EA D I N G H O TE L P R O P ERT Y C O M PA N I E S




     Hotel markets
     characterised
     by uncertainty

     Olympic Games in London
     – effects on the hotel industry




                                                                                                   S po t ligh t




     8                                                 10                                         10
               Theme: social                                                Focus                                      Future
               projects – interview                                         on flying                                  reservation
P.             with Staffan Olsson                      P.                                         p.                  patterns
JUST A WORD




Olympic Games in London
– a mega-event!
                          The Olympic Games in            not uncommon that we see celebrities who openly           Industrial skills are important
                          London were a sporting,         show their feelings when competing, which provi-          An anxious world is dampening the level of activity,
                          national, public and organi-    des a popular and relaxed style. Media reporting          which leads to lower demand in the hotel sector –
                          sational success. When          also emphasises the city and creates pride among          and a trend that we must adapt to. Success will be
                          looking at the impact of the    the local inhabitants and a feeling of belonging –        linked to winning market shares and increasing the
                          event, there is reason to say   which is often difficult to find in large multicultural   efficiency of our hotels. Financial creativity will have
that everyone who lives and works in London was           cities.                                                   less significance, while industrial skills will have
affected – and that the mega-event was probably               Olympic Games represent a mega-event, but             more!
revolutionary for the whole of Great Britain. After       also a marketplace for collaboration and building              This year’s Hotel Market Day will be about hotel
having personally experienced the event, it is not        relations – and it works!                                 architecture and design – an important subject,
really strange to say that summer Olympic Games               I believe that many people were sceptical as to       and speakers from across the world will be atten-
feel like the world’s greatest event.                     how London would manage to arrange the mega-              ding. The date is 27 November, and this will be the
    Olympic Games are significantly more than just        event. A very large city and long distances with old      16th consecutive year that Pandox has arranged
sport. Sure, the gigantic organisation is built up        transportation networks, as well as the recruitment       the Hotel Market Day. Just as many years as the
around the sports stars and their races, matches          of staff from a pronounced class society where            Company is young!
and contests, but for London the Games primarily          there are shortcomings in the service culture. But             Back to the Olympic Games. Sweden won a
implied an opportunity to market the city with the        the criticism was unfounded, the transportation           very well-earned silver medal in handball after a
entire world looking on. The reason is very obvious.      networks worked very well – every day. The loca-          dramatic match. “Handball is not for those with
The attention provides a unique possibility to            tion of the Olympic Arena Park in Stratford, north-       weak nerves,” wrote Mats Olsson in one if his
increase the city’s tax revenues through more visi-       east of central London, was a strategic success.          Olympics columns. Difficult to say otherwise.
tors. Really large sports events also create jobs         The area was in considerable need of modernisa-           Another quote from Olsson that I would like to
that often become permanent. The hospitality              tion, which enabled development with housing, a           share is: “A handball player is subjected roughly
industry plays here a decisive role to be able to         shopping centre and modern infrastructure, while          every other minute to blows, thrashing, dirty tricks,
receive and handle large numbers of visitors by           simultaneously providing good surfaces for arenas         elbowing and pure hockey tackles that would
offering exciting experiences and memories that           and areas for strolling around. The Olympic Park          make a normal football player from La Liga and
make them want to return – either to London or to         contained 8–10 arenas, as well as the gigantic            Series A to the Swedish Premier Division and Divi-
another event city. The media interest was enor-          athletics arena where the opening and closing             sion 7 throw themselves screaming to the ground,
mous, and it is estimated that about 22,000 jour-         ceremonies were held. The Park also contained a           rolling around and holding on to everything dear
nalists covered the Olympic Games, of whom 160            number of restaurants, cafés and souvenir shops,          to them!”
from Sweden. More than the number of competi-             a media centre where spectators could see the                  “But a handball player gets up, shakes them­
tors! The media plays several roles, apart from fol-      stars being interviewed, as well as large areas for       selves and continues.” One sometimes loves
lowing the Games. Through their presence, the             strolling around where sportsmen and women and            Mats Olsson!
atmosphere is even greater and they give the com-         the public were able to mingle. Visitors came from
petitors’ performance a sometimes almost magic            the whole world, and all religions were represented.      …and soon it will be Christmas. Where did the
signification. Sports stars become celebrities and        Women and men, young and old, many families,              time go?!!
today’s heroes with whom the world’s leaders, sta-        no hooligans, and very few intoxicated people. It
tesmen and major corporate leaders want to be             was like a peace project: UN bureaucrats – please         With very best regards,
seen. They shine next to the heroes, and at the           come and be inspired!                                     Anders Nissen
same time strengthen their personal profiles. It is




     Pandox Upgrade.                        Address: Pandox AB (publ)                Graphic design and production:            Cover photo: Scandic Grand Marina,
     Market information from Pandox –       P.O. Box 15                              Hallvarsson & Halvarsson                  Helsinki.
     published approximately three          SE-101 20 Stockholm, Sweden              Photos: Ulf Blomberg, Peter Hoelstad,     Upgrade can be ordered from Pandox
     times a year.                          Tel.: +46 (0) 8 506 205 50               Shutterstock, iStockphoto et al.          or read at www.pandox.se
     Editors: Anders Nissen,                Fax: +46 (0) 8 506 205 70
                                                                                     Printing: TMG Sthlm, november 2012.
     Marika Hilldoff, Ingrid Löwy           E-mail: info@pandox.se
                                                                                     May be reprinted only with the
                                            Visiting address:                        p
                                                                                     ­ ermission of Pandox.
                                            Vasagatan 11, 9th floor, Stockholm




2	                                                                                                                              mar k et information from Pando x
News
                                                                                Hotel world




August                                        September                                    New ABBA museum and Hotel
                                                                                           Melody at Djurgården. At Djurgården,
                                                                                                                                         Accor expands in the United King-
                                                                                                                                         dom. The hotel giant Accor is expan-
                                                                                           close to Gröna Lund and opposite Has-         ding its Mercure portfolio in the UK, and
Hilton loses its only hotel in central        Sveafastigheter and Midstar acquire                                                        will open four new hotels in the medium-
                                                                                           selbacken, a project is in progress to
Paris. Further to a dispute between Hil-      hotels in Nyköping. Sveafastigheter                                                        price segment in the forthcoming
                                                                                           prepare surfaces for the Swedish Music
ton and the property owner SIHPM, it is       and Midstar acquire the Ibis hotel in                                                      months. Further to the expansion, the
                                                                                           Hall of Fame, the world’s first ABBA
now apparent that Hilton will lose the        Nyköping with 96 rooms. The hotel is                                                       portfolio will contain 75 hotels.
                                                                                           museum, and Hotel Melody with about
four-star Hilton Arc de Triomph. The          located next to the E4 motorway bet-
                                                                                           50 rooms. The museum will have two
hotel has 500 rooms and is located in         ween central Nyköping and Skavsta Air-
                                                                                           underground floors, beneath Hotel
the exclusive 8th arrondissement just         port. In November 2010, Sveafastighe-
                                                                                           Melody. The inauguration of both the
north of the Arc de Triomph. Briefly, the     ter acquired Fund III and Midstar Accor
                                                                                           hotel and the museum is planned for the
dispute is due to the property owner          Hotels’ Swedish operating company
                                                                                           beginning of 2013. The project’s pro-
considering that Hilton has not suffi-        including 14 hotel properties. The Ibis
                                                                                           perty owner, builder and general cont-
ciently exploited the hotel’s potential.      hotel in Malmö was acquired in Febru-
                                                                                           ractor is Arcona. Hotel Melody will be
Hilton now has only three hotels in the       ary this year, and the consolidation of                                                    Quality Hotels in collaboration with
                                                                                           operated by Claes Livijn, CEO of Villa
Paris area – two airport hotels and one       the hotel portfolio now continues with                                                     Friends. Quality Hotels have entered
                                                                                           Källhagen.
in the La Défense business area – all         the acquisition of the Ibis hotel in Nykö-                                                 into a collaboration agreement as first
outside the city centre.                      ping. The vendor is Home Properties.                                                       hotel chain with the Friends anti-bullying
                                                                                                                                         organisation. Construction of the new
                                                                                                                                         hotel started one year ago, next to the
                                              Scandic opens new hotel in Hamburg.                                                        Friends Arena in Solna, Stockholm. The
                                              The new Scandic Hamburg Emporio will                                                       hotel was previously called Quality Hotel
                                              be a flagship hotel with 325 rooms and                                                     Arena and will now change name to
                                              a conference centre in central Ham-                                                        Quality Hotel Friends. The inauguration
                                              burg. The inauguration illustrates                                                         is planned for 31 August 2013. When
                                              Scandic’s focus on the Nordic region                                                       completed, the hotel will have 25 floors
                                              and northern Europe. The hotel has                                                         and 400 rooms.
Scandic opens a new hotel in                  been environmentally certified and pri-
                                                                                           Scandic is taking over after Hilton in
Helsinki. The new lifestyle hotel Scan-       zed for the sustainable building already
                                                                                           Malmö. After ten years, Scandic returns
dic Paasi is located close to the recently    before being opened. It will be environ-
                                                                                           to the hotel property at Triangeln in
refurbished and extended Helsinki
Congress Paasitorni building. Scandic
                                              mentally certified with the EU’s Flower
                                              Label, as well as holding pole position in
                                                                                           Malmö. After the New Year, the Scandic        November
                                                                                           sign will replace the Hilton sign. Scandic
Hotels has utilised the building’s histori-   the German certification organ VDR,
                                                                                           and Vasakronan will totally refurbish the
cal past in the 170-room hotel. The fur-      where energy and water consumption,
                                                                                           hotel, starting next year, although Scan-
nishings relate to the building’s eventful    food and beverage and social responsi-
                                                                                           dic will endeavour to receive guests as
years, as well as interesting people who      bility are appraised.
                                                                                           soon as possible after Hilton leaves the
have lived in the area.                                                                    property at the end of December this
                                                                                           year. The hotel was previously Scandic
                                                                                           up to 2002, when Hilton took over the
IKEA will build budget hotels. The fur-                                                    operations.
niture giant is planning to build 100 low-
priced hotels across Europe. The plan is
to form a chain with design hotels that                                                                                                  Inauguration of Clarion Hotel Arlanda.
                                                                                                                                         One of Stockholm’s new airport hotels in
can compete with, for example, Ibis. The
company will initially focus on the UK,
                                                                                           October                                       the high-price segment will open on 1
Germany, the Netherlands and Poland.                                                                                                     November 2012. The hotel has 414
According to the Financial Times, the                                                      Clarion Bergen Airport gets 100 new           guest rooms, 44 meeting rooms and 3
hotels will not have IKEA in their name,      Diligentia is expanding on the Avenyn.       rooms. Petter A. Stordalen is further-        restaurants. There is also a gym, outdoor
nor will IKEA operate the properties.         Scandic Rubinen in Gothenburg will now       investing in Bergen, and is expanding         pool on the roof terrace, as well as a
                                              be extended with 100 new hotel rooms.        the Clarion Hotel Bergen Airport with         steam and dry sauna. The hotel is loca-
                                              The property is owned by Diligentia, who     100 new rooms and more conference             ted in the centre of Arlanda in a part of
                                              have signed a new ten-year lease with        surface. “The capacity of both the air-       Sky City between terminals 4 and 5, and
                                              Scandic. Further to the extension and        port and the airport hotel are insufficient   was created by Björkén Architects.
                                              refurbishment, the Scandic Rubinen will      and an extension is necessary so as to        Sweco Architects have monitored the
                                              have a total of 300 hotel rooms, more        provide place for all those who wish to       development work.
                                              conference surfaces, a new lobby, roof-      stay and meet at the airport,” says
                                              top bar and a new gym. The work is           P
                                                                                           ­ etter A. Stordalen, owner and chair-
                                              expected to be completed by summer           man of Nordic Choice Hotels, who are
                                              2014. The property also aims to become       behind the Clarion chain.
                                              a Silver-classified Green Building.



mar ket information from Pandox 	                                                                                                                                                3
Focus on the market




Slow ahead!                       SUBDUED GROWTH AND
                               UNCERTAIN FUTURE PROSPECTS

Economic indicators from the United States                 increasingly opportunistic client pattern has                   now in recession with shrinking GDP-growth for
and the major growth countries lost momentum               become clearer – both private persons and com-                  three consecutive quarters, and there is considera-
during the summer further to a strong begin-               panies are making reservations for hotel stays and              ble uncertainty surrounding the economy for the
ning to the year. Anxiety within the global                meetings, large and small, with increasingly shorter            future. With this backdrop, plus that the hotel mar-
finance markets has however decreased and                  notice. This naturally renders it more difficult for            ket in London came from high levels of summer
global economies on the whole are still growing            hotels to make their forecasts!                                 2011 and that the city prior to the Olympic Games
at a relatively good pace. The euro zone howe-                 But despite the anxiety in the surrounding                  gained significant additional capacity with close to
ver is once again on the edge of recession, and            world, the hotel year opened relatively stable in the           7,000 new rooms, this year’s growth for the hotel
growth is expected to be weak for a long time              major European cities. The rate of growth slowed                market is considered to be stable. RevPAR
ahead. Weak developments have negatively                   slightly after the summer, and the markets are now              increased by 3 percent in the first three quarters.
affected demand in the hotel sector, and no                developing in general at a slower pace – with con-              May, June and July were weak months, while
rapid change in trends is anticipated. Conside-            siderable differences between countries, regions                August broke records thanks to the Olympic
rable differences still prevail between countries,         and segments. For the whole of Europe, RevPAR                   Games with RevPAR increasing by as much as 44
regions and segments.                                      increased by 5 percent in the first nine months                 percent, due entirely to prices. The Olympics effect
                                                           compared with last year. Growth markets in Eas-                 was however extremely varied depending on sub-
Continued stable hotel market in the                       tern Europe and the Baltic States have seen the                 market and location in relation to the large arenas.
US and New York                                            strongest trends this year.
The American hotel market basically follows the                Prices have driven developments in most mar-                Berlin
country’s economy and is currently experiencing            kets, while volumes have started to subside. The                Disturbing signs in Germany have been noted con-
good trends, particularly in comparison with the euro      markets that still have growth in volume are Berlin,            cerning rising unemployment and lower order-inta-
zone. The United States have seen growth in Rev-           Budapest, Frankfurt, Vilnius and Moscow.                        kes in the so-far strong industry sector. Berlin’s
PAR since autumn 2010, and the recovery has con-                                                                           hotel market has nonetheless seen excellent trends
tinued into 2012 at a stable pace. RevPAR for the          London                                                          this year, particularly compared with recent years.
first three quarters rose by 7 percent compared with       Outside the euro zone, the United Kingdom is also               The average rate for a hotel room is still considera-
last year. It is primarily higher prices that are behind
the growth, thanks to a stronger company segment.
However, the rise slowed in the third quarter and lan-
ded at 4 percent, due probably to poorer global            New York, RevPAR development per month January 2011 – September 2012
finance markets. The short-term trend is a declining
rate of growth and certain weakening is to be expec-         %
ted. Another interesting trend is that budget hotels       12                                                                                                            Average price
have started to come back after a few weak years.
                                                                                                                                                                         Occupancy
    As in previous years, New York’s hotel market          10
                                                                                                                                                                         RevPAR
lies slightly below the US average. Growth in Rev-
                                                            8
PAR for the city was 5 percent for the first three
quarters, and only 2 percent for the third quarter
where September developed negatively compared
                                                            6
                                                                                                       [diagram A]
                                                            4
with last year. Growth is driven by prices and
occupancy equally.                                          2

Uneven hotel market in Europe                               0
Weak economic developments within the euro
                                                           -2
zone have implied uncertainty and lower activity for
the hotel sector. In general, there have been fewer        -4
                                                                                                                           2011     2012
guests from the PIIGS-countries and France, and
even lower demand from the finance sector. An              -6
                                                                                       ay




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                                                                                                                                  The figures are based on statistics from STR Global.
     Explanations:
     RevPAR = Income per room available



4	                                                                                                                                         mar k et information from Pando x
Hilton Helsinki Kalastajatorppa, Finland




Hotel markets, YTD September 2012 – price and occupancy


Boston
Paris
Berlin
Helsinki
London
Copenhagen
Europe
New York
Toronto
Amsterdam
Brussels
Stockholm                                                                                                       Occupancy
Gothenburg                                                                                                      Average price
Oslo

             -5                              0                                    5                                  10    %
                                                 The figures are based on statistics from STR Global and Benchmarking Alliance.




mar ket information from Pandox 	                                                                                                 5
bly lower than most other large European cities                 rise in tourism from primarily Russia (30 percent      SCANDINAVIAN OVERVIEW
(less than 90 euros for the city’s overall hotel mar-           increase in 2012), the United States and Japan –
ket). But developments in 2012 have been good                   and that 2012 has been a strong event-year with
                                                                                                                       Stockholm
and better than expected. In the first three quar-              the ice-hockey world championships and the athle-
ters, RevPAR rose by 9 percent, and just in the                 tics European championships being held in the city.    SEK
third quarter RevPAR increased by as much as 17                                                                        900
percent. These good figures can be explained by                 Copenhagen has recovered well after a weak end
strong summer months, an unusually good mee-                    of 2011, and is developing strongly thanks to hig-     800
tings month in September, and that the hotel mar-               her average rates. The hotel market has also been
ket in general benefited from that many travellers              positively affected by limited additional capacity     700
who had planned to fly to or from the new airport               during the year. And only a few new hotels are




                                                                                                                               RevPAR
did not choose to, or could not, cancel their flights           expected to open next year.
                                                                                                                       600
when it became known that the opening of the air-
port was delayed.                                               On the other hand, Stockholm is showing weak
                                                                figures so far this year. The market lost 11 percent   500
                                                                                                                              2007       2008   2009     2010      2011        2012
The Nordic countries’ economies                                 in RevPAR in the third quarter and as much as
continue to stand out…                                          17 percent just in September. The main reason is             RevPAR, SEK         Trend     Source: Benchmarking Alliance

The Nordic countries have been affected by the glo-             additional capacity in the market. Several new large
bal turbulence, but continue to be very stable com-             hotels have opened since autumn 2011, and even
pared with the situation elsewhere. Norway is show-             more new hotels are to be inaugurated at the end
                                                                of 2012 and next year, including Melody Hotel at       Copenhagen
ing signs of weakness and slowing down. Sweden’s
economy surprised positively in the first half-year,            Djurgården, Clarion Arlanda, Quality Hotel Friends,    DKK
but clear signs of a weakening have been seen                   and Story Sundbyberg.                                  650

recently. Exports have fallen further to the strong                 2012 has also been a weak congress year com-
krona, and unemployment is rising. Finland is also              pared with both 2010 and 2011 when several
slowing strongly, particularly due to fewer exports,            major international congresses were held, which in     550

and growth is now the lowest within the euro zone.              turn led to an increase in demand for hotel rooms.
The situation in Denmark however is the worst                   Short-term trends for Stockholm are pointing




                                                                                                                               RevPAR
among the Nordic countries, where a recession is                towards a downturn, due particularly to lower volu-    450

close at hand.                                                  mes but also lower prices compared with last year.

…but weaker trends than anticipated in                          Oslo is compared with strong figures from last year    350
                                                                                                                              2007       2008   2009     2010      2011        2012
the hotel markets!                                              further to the skiing world championships in spring
As in the countries’ economic trends, the hotel                 2011. Like Stockholm, the market is affected by              RevPAR, DKK         Trend               Source: STR Global

markets in the major Nordic cities have seen diffe-             considerable additional capacity during the year.
rent developments so far this year:                             But only a few new hotels are expected to open
                                                                next year and ahead. In total, the Oslo market has
The Helsinki market comes from low levels and is                declined by 4 percent for the first three quarters,    Oslo
showing stable and good RevPAR growth, driven                   and short-term trends show a downturn in both          NOK
by higher prices. The market is benefiting from a               price and occupancy.                                   700


                                                                                                                       650


                                                                                                                       600
                                                                                                                               RevPAR




                                                                                                                       550


                                                                                                                       500
                                                                                                                              2007       2008   2009     2010      2011        2012

                                                                                                                             RevPAR, NOK         Trend     Source: Benchmarking Alliance




                                                                                                                       Helsinki
                                                                                                                       EUR
                                                                                               The Hotel, Brussels      80



                                                                                                                        70
  RevPAR growth                                                                                        Short-
  Nordic region                                2011        2012 H1        2012 YTD          2012 Q3 term trend
                                                                                                                               RevPAR




  Stockholm                                      3%               1%             –4%          –11%       Downturn       60

  Oslo                                           2%             –9%              –4%           –1%       Downturn
                                                                                                                        50
  Copenhagen                                     5%               7%               6%           2%          Growth            2007       2008   2009     2010      2011        2012

  Helsinki                                       6%               7%               6%           4%          Growth           RevPAR, EUR         Trend               Source: STR Global



Source: Benchmarking Alliance (Stockholm and Oslo), STR Global (Copenhagen and Helsinki).




6	                                                                                                                                      mar k et information from Pando x
Olympic Games
         in London 2012
         – effects on the hotel industry
Fewer tourists visited the United Kingdom and            that the hotels had to ignore the rules of only       ter number of visitors and tourists. RevPAR up to
London in August this year compared with last            accepting reservations for several consecutive        the end of August rose by more than 4 percent
year. But those who visited the Olympic Games            hotel nights.                                         compared with last year. And just in August, pri-
and the Paralympics spent more money than                   However, the Olympics affected hotels and          ces rose by as much as 44 percent compared
the tourists the previous year.                          parts of London in different ways. The large hotels   with last year, while occupancy was at the same
                                                         in western London around the traditional sights,      level. July was poorer, and RevPAR declined by 4
Tourist revenues in the country have increased by        museums, theatres and well-known buildings lost       percent further to lower occupancy. Prices howe-
9 percent this year. According to the British Office     guests and revenues, while hotels close to the        ver developed strongly in July.
for National Statistics (ONS), visitors to the Olympic   Olympic arenas in Docklands and Greenwich                 How did the actual Games go? The United
Games and Paralympics spent nearly twice as              reported record volumes and higher prices of up       States, particularly with their swimmers and athle-
much as other tourists!                                  to 40 percent. Regions and cities outside London,     tes, won the most medals. China came second,
    The anticipated Olympics boom failed to              such as Liverpool and Manchester, did not howe-       followed by Great Britain. The British sporting
appear for the hotel sector. Revenues for London         ver succeed to benefit from the Olympic Games         results were fantastic, and their organisation of
hotels during the Olympics weeks increased by            as many had hoped. But in general, the results of     the Games was excellent. One of the highlights for
only 10 percent, further to slightly higher              the summer are considered to be very positive –       the host nation was when the Scot Andy Murray
occupancy and above all higher prices. Prior to          particularly in the prevailing circumstances with     won the tennis final in Wimbledon against the
the Games, the Olympic Committee, LOGOC,                 around 7,000 new hotel rooms being added              world’s number 1 Roger Federer. Another given
had pre-reserved a large number of hotel rooms           before the Games, that the market came from           climax was king Usain Bolt’s performance in
where only reservations for a long hotel stay were       record-strong figures from summer 2011, and that      athletics with three gold medals!
accepted. The strategy proved to be over-opti-           the economic climate is weak in Europe.                   Sweden won a total of eight medals, of which
mistic and thousands of empty hotel rooms were              Short-term trends for London are also show-        one gold, and came 36th in the medals league. In
released onto the market just before the Games           ing stable growth. The additional capacity has        total, 85 nations of the 204 that participated, won
were to start, which led to reduced prices and           been well-absorbed by demand, thanks to a grea-       at least one medal.




mar ket information from Pandox 	                                                                                                                               7
ThEMe social projects



Olsson:
“To create a purposeful future for
  young people is a victory in itself”




     Name: Staffan Olsson
     Age: 48 years
     Family: Married, 2 children
     Home: Tumba
     Best quality: Impatient
     Worst quality: Impatient
     Occupation: Employed by Pandox since
     2009 as Director of Health, Sports &
     Coaching. National team manager for
     the Swedish handball team.




8	                                          mar k et information from Pando x
He has won the World Championship, European Championship, a
 second place in Champions League, and most recently an Olympic sil-
                                                                               OLYMPICS 2012
 ver medal in London. Staffan Olsson is now starting his next match
 together with Pandox Youth Handball Movement – a social project to            Sweden’s road to the

                                                                               silver
 provide young people in the Kenyan town of Nyeri with a better future
 through training, solidarity and education.
    “To create a purposeful future for young people is a victory in itself,”
 says the national team manager of the Swedish handball team.
 Staffan Olsson is back in Stockholm. The handball legend has
 returned home after several months of preparations and hard work
 that in the end paid off with an Olympic silver medal in London – the

                                                                               achievement
 best result by a Swedish national team for ten years. “It has been an
 extremely intensive period, but has also been a fantastic journey. To
 win an Olympic silver medal is completely unbelievable,” he says.

 The national team manager has recently moved his focus onto the
 very tough qualifying matches prior to the European Champion-
 ships 2014, which started in November. With two matches won                   National team manager Staffan Olsson and the national
 against Ukraine and Holland, Sweden has managed an excellent                  handball team had a tough start at the Olympic Games
 start prior to the forthcoming qualifiers next year.                          in London.
    But the immediate future also contains other challenges. Towards
 the end of the summer, it was decided that Pandox, with the help of           After two heavy losses in the group matches (Iceland 32–33,
 Staffan Olsson, would intensify its development of the Pandox Youth
                                                                               France 23–26), the Swedish team met the European cham-
 Handball Movement.
                                                                               pions Denmark in the quarter-final.
    “I have been interested in social projects for some time now, but it
                                                                                   “We are in a disadvantageous position,” said Staffan
 has not really fitted in before. But this project feels absolutely right,”
                                                                               O
                                                                               ­ lsson to SVT.
 says ­ taffan Olsson.
       S
                                                                                   The quarter-final was dramatic and was determined with
    The Pandox Youth Handball Movement was started in November
                                                                               only one minute left, when Niclas Ekberg thundered two
 2011 in the Kenyan town of Nyeri, north-west of the capital city of Nai-
                                                                               balls into goal to claim a victory of 24–22. The upset
 robi. The town has several slum areas where children live each day
                                                                               became fact and the TV expert Magnus Grahn screamed
 with drugs and poverty. In collaboration with the local handball club,
 Mount Kenya Sports Group (MSG), Pandox aims to gain the attention             out his pleasure:
 of young people and create a purposeful future.                                   “We have higher mountains, we have a better-looking
    “It is about young people who have got into difficult situations and       queen, we can ski, and we are better at handball.”
 have a tough life. Some of the children live in poverty and have no edu-          Sweden then won against Hungary in the semi-final, and
 cation or work, and live in some form of addiction,” says Olsson.             met France in the final. But the reigning champions were too
    About one year ago, the activities embraced 200–400 children, and          strong. Sweden nonetheless pressed the super team, but
 the number has now increased to more than 600 members.                        lost by just 21–22, which was Sweden’s best result for ten
    But the project management at Pandox and MSG are far from satis-           years.
 fied. The project will now move onto the next stage with Sweden’s                 “It feels really tough after putting up an incredible fight,”
 most experienced handball trainer.                                            said Staffan Olsson to SVT.
    “I believe that we can do a really good job here. Interest in the sport        The national team is now looking ahead to the European
 and the project continues to grow,” says Staffan Olsson.                      Championship qualifiers, which started on 1 November
    A training camp is planned for February 2013 in Nyeri, where child-        against Ukraine in Lund and the Dutch team Almere on
 ren and young people can practice handball at the same time as                3 November.
 obtaining information and advice about relations and health issues.
    Staffan Olsson will play an important role as training coach and
 inspirator.
    “We believe that sport with a team spirit and models can create the
 preconditions to reach out. It is a way of creating prerequisites for
 young people to shape their own future.                                              Results of the Olympic matches
                                                                                      Group matches:
                                                                                      Sweden – Tunisia......................................... 28 – 21
                                                                                      Great Britain – Sweden............................. 19 – 41
… Pandox Youth Handball                                                               Sweden – Iceland........................................ 32 – 33


Movement
                                                                                      Sweden – Argentina................................... 29 – 13
                                                                                      France – Sweden......................................... 26 – 23
                                                                                      Quarter-final:
                                                                                      Sweden – Denmark.................................... 24 – 22
The objective of the Pandox Youth Handball Movement is to create
better future opportunities and purposeful leisure time for children and              Semi-final:
young people in the Kenyan town of Nyeri, north-west of Nairobi. The                  Sweden – Hungary...................................... 27 – 26
project is managed in collaboration with Partille Cup, the world’s largest
and most international handball tournament for young people, and the                  Final:
Kenyan handball club MSG. Further information about the project and                   Sweden – France......................................... 21 – 22
previous articles are available at www.pandox.se/foretagsansvar




mar ket information from Pandox 	                                                                                                                         9
Focus on flying
The super Berlin Brandenburg airport
– when will it actually open?
The announcement that the planned official ope-
ning date of 3 June 2012 could not be held came
three weeks before the intended inauguration and
traffic start-up. The reason given was that the
airport’s fire-protection installations were not ready
to be put into operation. The delay is of course a
genuine loss of prestige for the public authorities
concerned and the airport management. But it is
also a significant setback for Lufthansa and Air
Berlin, who have considerable plans to expand
their traffic to Berlin when the city obtains a new
super airport that replaces the two older ones.
    According to preliminary information, the new
airport was to open in August 2012. But it soon
became known that it was unclear whether the
systems could be ready to be put into operation for
other parts of the terminal building, and the delay
became worse. A new announcement was made
by the airport management in May this year: the
airport would open on 17 March 2013. However,
after further inspection of the building problems,
the date has now been set to 27 October 2013.
UpGrade is following developments carefully!

Poorer flying accessibility
in the Stockholm region
Compared with Helsinki and Oslo, Stockholm has
relatively good availability with flights to the rest of
the world. Even if Copenhagen, where SAS has its
major hub, is in a better position, it is reasonably
easy to fly from Stockholm to a large number of
other cities across the world. Nonetheless, availa-




New times – new reservation patterns
A new Swedish survey shows that an increa-                 Most people reserve hotel rooms via booking sites
sing number of guests make hotel reservations
via the major booking sites, and the market for            How do you normally reserve
mobile applications has just started.                      hotel rooms when you travel as                            18–29   30–39     40–55     56–80
                                                           a private individual?                             Total   years   years     years     years
The HUI Research Institute has carried out a preli-        Via the Internet through a booking site           44%      53%      41%      45%       39%
minary study of reservation patterns in Sweden,
                                                           Via the hotel's or hotel chain's own site         30%      22%      36%      30%       31%
where 1,000 people between 18 and 80 years old
were asked how they usually reserve their hotel            By calling directly to the hotel or hotel chain   12%       8%      10%      12%       14%
rooms when they travel as private individuals. Of          By sending an email to the hotel or hotel chain    2%       2%       1%        2%       3%
those who frequently stay at hotels, 44 percent
                                                           By mobile phone via apps from booking sites        1%       1%       2%        0%       0%
replied that they use sites such as Hotels.com,
Expedia and Booking.com. The younger the per-              By mobile phone via the hotel's or hotel
son, the more common it is to use the booking              chain's own app or mobile site                     0%       0%       0%        0%       0%
sites. In the age-group 18–29 years, as many as 53         By asking a travel agent to book the hotel         2%       2%       5%        1%       4%
percent say that they make their reservations via          Do not book in advance, but go directly to the
various booking sites.                                     hotel (walk-in)                                    1%       1%       0%        0%       1%
    Remarkably, only 1–2 percent of those surveyed
                                                           Other                                              1%       0%       1%        2%       1%
have used the possibility to book via applications in
their mobile phone. This will probably change in the       Don't know / Do not book myself                    6%       8%       3%        6%       6%



10	                                                                                                                    mar k et information from Pando x
Five questions to
                                                                      Jan Henningsen,
                                                                      manager of Hotel BLOOM!, Brussels.

bility from Arlanda has fallen in the last five years while increa-
sing in other Nordic capital cities. This is due partly to the
American airlines such as Delta and US Airways having
d
­ iscontinued their flights to Atlanta and Philadelphia.
     A new report from the consultancy firm Copenhagen Eco-
nomics says that the Stockholm region could benefit consi-
derably if Arlanda obtained ten new direct routes, particularly
to long-distance destinations. The report believes that
Stockholm’s accessibility by air has become poorer, which
costs money both for travellers and for the region as a whole
in the form of lower production.
                                                                      1    You have returned to Belgium after many years in the United States
                                                                           where you held various management positions at such well-known
                                                                           hotels as the Kempinski Checkers Hotel in Los Angeles, the Wyndham
     However, it is the airlines that decide where they will open     Ambassador West Chicago and most recent as General Manager of The
new routes. The challenge for Arlanda is quite clear further to       Standard West Hollywood in Los Angeles and The Standard Los Angeles
SAS choosing to start a new direct flight to San Francisco            Downtown. What to do you believe is the main difference with working in
next April – which will leave from Copenhagen, not from               these different markets?
Stockholm.                                                            Jan: Each market has its own rhythm over a year that dictates the strategies that have
     The report believes however that the situation can change        to be employed to maximize the hotel’s potential. Large conventions set the tone in
rapidly. For example, Copenhagen could have difficulty in             cities while the seasons have a huge impact on resorts. It
defending its position when the new Berlin Brandenburg
finally opens. This in turn could make Stockholm Arlanda
                                                                      is always important to understand the strengths and
                                                                      weaknesses of your own properties compared with the         “Brussels
                                                                                                                                   is a very
more attractive for airlines.                                         competition in order to target your sales efforts accor-
     According to new statistics from the Swedish Civil Aviation      dingly. The good news is that the same reports, such as
Administration, the number of movements in Swedish air-
space decreased during seven consecutive months up to
                                                                      STR etc., are used almost everywhere making it easier to
                                                                      understand where the market is in terms of rate and          stable
September 2012. Just in September alone, traffic declined in
                                                                                                                                   market”
                                                                      occupancy. Labor laws and union contracts vary as well
the whole country by 5 percent compared with last year. After         but are not a huge adjustment if you work with a good
ten months, the overall decrease in traffic is just over 2 per-       team like I do at Hotel BLOOM!
cent. However, the statistics are better for Stockholm Arlanda.
Air traffic to and from Arlanda up to September increased by 4
percent compared with the same period last year.
                                                                      2     We are a bit curious, have there been any special surprises as you take
                                                                            up your new role as the General Manager of Hotel BLOOM!?
                                                                             Jan: I was very surprised by how weak weekend demand is considering how
                                                                      much Brussels has to offer. There seems to be some type of festival almost every
                                                                      week and the city is an easy drive from the Netherlands, Germany and France plus
                                                                      rates are low. The same goes for how slow the summers are.



                                                                      3
                                                                            What do you believe is the difference from now being a non-branded
                                                                            operator compared with your previous positions? What significance
                                                                            do you believe a brand or hotel name has for your operations?
                                                                      Jan: My objective is to enhance the BLOOM! brand to become as successful as
                                                                      the pervious companies I have worked for. The difference is that previous positions
                                                                      were at hotels that had already reached a higher level of brand awareness.
future, and mobile websites and apps are expected to com-             Choosing a brand for a property is difficult. The advantage of choosing to run it as
pete with the traditional booking sites.                              an independent hotel is that you can create a tailor-made product for a specific
    The sector and employer organisation Visita is interested         market and audience that can inspire a higher level of interest and guest loyalty
in the question of reservation patterns, and has ordered a            since it cannot be replaced by just any other hotel room.
broad mapping and analysis of the market – partly to see


                                                                      4
what the organisation as a whole can do and relate to the                   Hotel statistics for Brussels for the first nine months of 2012 were
booking channels, and partly to be able to provide advice to                relatively weak. How do you feel about the Brussels hotel market for
hotels within the new sales scenario. The mapping has star-                 the forthcoming year?
ted and is expected to be ready in the beginning of next              Jan: My impression is that Brussels is a very stable market. We are expecting
year. UpGrade is following the results with great interest!           demand to be in line with targets for this year.



                                                                      5     Hotel BLOOM received a top ranking from TripAdvisor last year, and was
                                                                            selected #13 of the Trendiest Hotels in the World. What would you say is
                                                                            unique about Hotel BLOOM?
                                                                      Jan: A rating like this is only possible if you have a great team taking care of every
                                                                      aspect of the guest experience. This, combined with the well thought-out design of
                                                                      the property, created the enjoyable experience that made our success possible.




mar ket information from Pandox 	                                                                                                                              11
Pandox news
                                                                       News from the world of Pandox




                                                                                                                           Cirque du Soleil at Crowne Plaza Brussels
   Workout with a view! At The Hotel Brussels, the view                                                                    The hotel staff at Crowne Plaza Antwerpen was
   over the city from the fitness centre is magnificent.
                                                                                                                           invited to the spectacular opening show of Cir-
                                                                                                                           que du Soleil – “Corteo”– as a special thanks for
                                                                                                                           all appreciated service and hospitality during
                                                                                                                           their long term stay at the hotel during the sum-
                                                                                                                           mer months. The show was just amazing and
                                                                                                                           the Antwerp Team is now looking forward to host
                                                                                                                           the next show in Antwerp again!




                                                                                                                                             Much appreciated circus art in Antwerp.




                                                                                                                           1 million new guests
                                                                                                                           Inspired by similar urban projects and in coo-
     Great skyline view at The Hotel Brussels                                                                              peration with experts The Hotel Berlin, Berlin
     The 10 top floors of the 27 stories high building have been completely renovated and have been                        has set up twenty beehives on the roof. Each
     given a surprising elegant new identity. Guests can now fully enjoy more than 120 rooms and sui-                      beehive counts around 50,000 bees which
     tes, The Urban Spa & Fitness, the Panorama Lounge and eight meeting rooms on the top floors. All                      mean the hotel now has around 1 million new
     come with the new timeless and stylish decor, combined with fantastic skyline views of Brussels!                      guests. The hotel aim to continue the activities
                                                                                                                           around the successful F&B concept ‘Sense &
                                                                                                                           Season’, to focus more on seasonal and regio-
                                                                                                                           nal culinary offers and to be protective of highly
Grand prix at Hyatt Montreal – huge success                                                                                valuable and important bees. With hardwor-
Hyatt Regency Montreal hosted Les Prix Gémeaux                                                                             king bees on the roof, more than the annual
annual awards in October. One thousand guests                                                                              requirement of the hotel is covered.
including celebrities from Quebec’s television indu-                                                                       About 15 kg of honey will
stry gathered to recognize their peers in a memo-                                                                          be produced per month!
rable evening. The awards were presented at
Montreal’s Performing Arts Centre followed by a
                                                                                                                           New arrivals at the
gala at the SIX Resto Lounge at the hotel.                                                                                 Hotel Berlin, Berlin.
                                                           Party atmosphere with TV personalities at the Hyatt Montreal.



                                                            Street art in Hotel Bloom!
                                                            When it comes to graffiti, Belgium street artist, Bue
                                                            the Warrior, is in a league of his own. He is single-
                                                            handedly turning the concrete jungles of Belgium
                                                            into a colorful, happy, whimsical world that is inha-
                                                            bited by a whole race of friendly-faced creatures.
                                                            Now the artist has expressed himself creatively in
  Diamond fever                                             the lobby of Hotel BLOOM! and the result is great!
  for happy finder
  at the Holiday Inn
  Brussels Airport.                                                                           Colour and fantasy at the
                                                                                              Hotel BLOOM! in Brussels.

Diamonds are forever
At the occasion of the 60th anniversary of Holiday
Inn Hotels Group eight one-carat diamonds were
left under the pillows of eight rooms somewhere in
Europe. One of the diamonds was found at the
Holiday Inn Brussels Airport by this lady on the
picture next to GM Charles Boelen. She discove-
red the diamond only the next morning! That’s
                                                                                                                           Read more news about
what we call a good night’s sleep!                                                                                         Pandox at www.pandox.se

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Pan upgrade 2012-nr2-eng

  • 1. Up Grade # 2 2012 M a r k e t I N F O R M AT I O N F R O M PA N D O X – O N E O F E U R O P E ’ S L EA D I N G H O TE L P R O P ERT Y C O M PA N I E S Hotel markets characterised by uncertainty Olympic Games in London – effects on the hotel industry S po t ligh t 8 10 10 Theme: social Focus Future projects – interview on flying reservation P. with Staffan Olsson P. p. patterns
  • 2. JUST A WORD Olympic Games in London – a mega-event! The Olympic Games in not uncommon that we see celebrities who openly Industrial skills are important London were a sporting, show their feelings when competing, which provi- An anxious world is dampening the level of activity, national, public and organi- des a popular and relaxed style. Media reporting which leads to lower demand in the hotel sector – sational success. When also emphasises the city and creates pride among and a trend that we must adapt to. Success will be looking at the impact of the the local inhabitants and a feeling of belonging – linked to winning market shares and increasing the event, there is reason to say which is often difficult to find in large multicultural efficiency of our hotels. Financial creativity will have that everyone who lives and works in London was cities. less significance, while industrial skills will have affected – and that the mega-event was probably Olympic Games represent a mega-event, but more! revolutionary for the whole of Great Britain. After also a marketplace for collaboration and building This year’s Hotel Market Day will be about hotel having personally experienced the event, it is not relations – and it works! architecture and design – an important subject, really strange to say that summer Olympic Games I believe that many people were sceptical as to and speakers from across the world will be atten- feel like the world’s greatest event. how London would manage to arrange the mega- ding. The date is 27 November, and this will be the Olympic Games are significantly more than just event. A very large city and long distances with old 16th consecutive year that Pandox has arranged sport. Sure, the gigantic organisation is built up transportation networks, as well as the recruitment the Hotel Market Day. Just as many years as the around the sports stars and their races, matches of staff from a pronounced class society where Company is young! and contests, but for London the Games primarily there are shortcomings in the service culture. But Back to the Olympic Games. Sweden won a implied an opportunity to market the city with the the criticism was unfounded, the transportation very well-earned silver medal in handball after a entire world looking on. The reason is very obvious. networks worked very well – every day. The loca- dramatic match. “Handball is not for those with The attention provides a unique possibility to tion of the Olympic Arena Park in Stratford, north- weak nerves,” wrote Mats Olsson in one if his increase the city’s tax revenues through more visi- east of central London, was a strategic success. Olympics columns. Difficult to say otherwise. tors. Really large sports events also create jobs The area was in considerable need of modernisa- Another quote from Olsson that I would like to that often become permanent. The hospitality tion, which enabled development with housing, a share is: “A handball player is subjected roughly industry plays here a decisive role to be able to shopping centre and modern infrastructure, while every other minute to blows, thrashing, dirty tricks, receive and handle large numbers of visitors by simultaneously providing good surfaces for arenas elbowing and pure hockey tackles that would offering exciting experiences and memories that and areas for strolling around. The Olympic Park make a normal football player from La Liga and make them want to return – either to London or to contained 8–10 arenas, as well as the gigantic Series A to the Swedish Premier Division and Divi- another event city. The media interest was enor- athletics arena where the opening and closing sion 7 throw themselves screaming to the ground, mous, and it is estimated that about 22,000 jour- ceremonies were held. The Park also contained a rolling around and holding on to everything dear nalists covered the Olympic Games, of whom 160 number of restaurants, cafés and souvenir shops, to them!” from Sweden. More than the number of competi- a media centre where spectators could see the “But a handball player gets up, shakes them­ tors! The media plays several roles, apart from fol- stars being interviewed, as well as large areas for selves and continues.” One sometimes loves lowing the Games. Through their presence, the strolling around where sportsmen and women and Mats Olsson! atmosphere is even greater and they give the com- the public were able to mingle. Visitors came from petitors’ performance a sometimes almost magic the whole world, and all religions were represented. …and soon it will be Christmas. Where did the signification. Sports stars become celebrities and Women and men, young and old, many families, time go?!! today’s heroes with whom the world’s leaders, sta- no hooligans, and very few intoxicated people. It tesmen and major corporate leaders want to be was like a peace project: UN bureaucrats – please With very best regards, seen. They shine next to the heroes, and at the come and be inspired! Anders Nissen same time strengthen their personal profiles. It is Pandox Upgrade. Address: Pandox AB (publ) Graphic design and production: Cover photo: Scandic Grand Marina, Market information from Pandox – P.O. Box 15 Hallvarsson & Halvarsson Helsinki. published approximately three SE-101 20 Stockholm, Sweden Photos: Ulf Blomberg, Peter Hoelstad, Upgrade can be ordered from Pandox times a year. Tel.: +46 (0) 8 506 205 50 Shutterstock, iStockphoto et al. or read at www.pandox.se Editors: Anders Nissen, Fax: +46 (0) 8 506 205 70 Printing: TMG Sthlm, november 2012. Marika Hilldoff, Ingrid Löwy E-mail: info@pandox.se May be reprinted only with the Visiting address: p ­ ermission of Pandox. Vasagatan 11, 9th floor, Stockholm 2 mar k et information from Pando x
  • 3. News Hotel world August September New ABBA museum and Hotel Melody at Djurgården. At Djurgården, Accor expands in the United King- dom. The hotel giant Accor is expan- close to Gröna Lund and opposite Has- ding its Mercure portfolio in the UK, and Hilton loses its only hotel in central Sveafastigheter and Midstar acquire will open four new hotels in the medium- selbacken, a project is in progress to Paris. Further to a dispute between Hil- hotels in Nyköping. Sveafastigheter price segment in the forthcoming prepare surfaces for the Swedish Music ton and the property owner SIHPM, it is and Midstar acquire the Ibis hotel in months. Further to the expansion, the Hall of Fame, the world’s first ABBA now apparent that Hilton will lose the Nyköping with 96 rooms. The hotel is portfolio will contain 75 hotels. museum, and Hotel Melody with about four-star Hilton Arc de Triomph. The located next to the E4 motorway bet- 50 rooms. The museum will have two hotel has 500 rooms and is located in ween central Nyköping and Skavsta Air- underground floors, beneath Hotel the exclusive 8th arrondissement just port. In November 2010, Sveafastighe- Melody. The inauguration of both the north of the Arc de Triomph. Briefly, the ter acquired Fund III and Midstar Accor hotel and the museum is planned for the dispute is due to the property owner Hotels’ Swedish operating company beginning of 2013. The project’s pro- considering that Hilton has not suffi- including 14 hotel properties. The Ibis perty owner, builder and general cont- ciently exploited the hotel’s potential. hotel in Malmö was acquired in Febru- ractor is Arcona. Hotel Melody will be Hilton now has only three hotels in the ary this year, and the consolidation of Quality Hotels in collaboration with operated by Claes Livijn, CEO of Villa Paris area – two airport hotels and one the hotel portfolio now continues with Friends. Quality Hotels have entered Källhagen. in the La Défense business area – all the acquisition of the Ibis hotel in Nykö- into a collaboration agreement as first outside the city centre. ping. The vendor is Home Properties. hotel chain with the Friends anti-bullying organisation. Construction of the new hotel started one year ago, next to the Scandic opens new hotel in Hamburg. Friends Arena in Solna, Stockholm. The The new Scandic Hamburg Emporio will hotel was previously called Quality Hotel be a flagship hotel with 325 rooms and Arena and will now change name to a conference centre in central Ham- Quality Hotel Friends. The inauguration burg. The inauguration illustrates is planned for 31 August 2013. When Scandic’s focus on the Nordic region completed, the hotel will have 25 floors and northern Europe. The hotel has and 400 rooms. Scandic opens a new hotel in been environmentally certified and pri- Scandic is taking over after Hilton in Helsinki. The new lifestyle hotel Scan- zed for the sustainable building already Malmö. After ten years, Scandic returns dic Paasi is located close to the recently before being opened. It will be environ- to the hotel property at Triangeln in refurbished and extended Helsinki Congress Paasitorni building. Scandic mentally certified with the EU’s Flower Label, as well as holding pole position in Malmö. After the New Year, the Scandic November sign will replace the Hilton sign. Scandic Hotels has utilised the building’s histori- the German certification organ VDR, and Vasakronan will totally refurbish the cal past in the 170-room hotel. The fur- where energy and water consumption, hotel, starting next year, although Scan- nishings relate to the building’s eventful food and beverage and social responsi- dic will endeavour to receive guests as years, as well as interesting people who bility are appraised. soon as possible after Hilton leaves the have lived in the area. property at the end of December this year. The hotel was previously Scandic up to 2002, when Hilton took over the IKEA will build budget hotels. The fur- operations. niture giant is planning to build 100 low- priced hotels across Europe. The plan is to form a chain with design hotels that Inauguration of Clarion Hotel Arlanda. One of Stockholm’s new airport hotels in can compete with, for example, Ibis. The company will initially focus on the UK, October the high-price segment will open on 1 Germany, the Netherlands and Poland. November 2012. The hotel has 414 According to the Financial Times, the Clarion Bergen Airport gets 100 new guest rooms, 44 meeting rooms and 3 hotels will not have IKEA in their name, Diligentia is expanding on the Avenyn. rooms. Petter A. Stordalen is further- restaurants. There is also a gym, outdoor nor will IKEA operate the properties. Scandic Rubinen in Gothenburg will now investing in Bergen, and is expanding pool on the roof terrace, as well as a be extended with 100 new hotel rooms. the Clarion Hotel Bergen Airport with steam and dry sauna. The hotel is loca- The property is owned by Diligentia, who 100 new rooms and more conference ted in the centre of Arlanda in a part of have signed a new ten-year lease with surface. “The capacity of both the air- Sky City between terminals 4 and 5, and Scandic. Further to the extension and port and the airport hotel are insufficient was created by Björkén Architects. refurbishment, the Scandic Rubinen will and an extension is necessary so as to Sweco Architects have monitored the have a total of 300 hotel rooms, more provide place for all those who wish to development work. conference surfaces, a new lobby, roof- stay and meet at the airport,” says top bar and a new gym. The work is P ­ etter A. Stordalen, owner and chair- expected to be completed by summer man of Nordic Choice Hotels, who are 2014. The property also aims to become behind the Clarion chain. a Silver-classified Green Building. mar ket information from Pandox 3
  • 4. Focus on the market Slow ahead! SUBDUED GROWTH AND UNCERTAIN FUTURE PROSPECTS Economic indicators from the United States increasingly opportunistic client pattern has now in recession with shrinking GDP-growth for and the major growth countries lost momentum become clearer – both private persons and com- three consecutive quarters, and there is considera- during the summer further to a strong begin- panies are making reservations for hotel stays and ble uncertainty surrounding the economy for the ning to the year. Anxiety within the global meetings, large and small, with increasingly shorter future. With this backdrop, plus that the hotel mar- finance markets has however decreased and notice. This naturally renders it more difficult for ket in London came from high levels of summer global economies on the whole are still growing hotels to make their forecasts! 2011 and that the city prior to the Olympic Games at a relatively good pace. The euro zone howe- But despite the anxiety in the surrounding gained significant additional capacity with close to ver is once again on the edge of recession, and world, the hotel year opened relatively stable in the 7,000 new rooms, this year’s growth for the hotel growth is expected to be weak for a long time major European cities. The rate of growth slowed market is considered to be stable. RevPAR ahead. Weak developments have negatively slightly after the summer, and the markets are now increased by 3 percent in the first three quarters. affected demand in the hotel sector, and no developing in general at a slower pace – with con- May, June and July were weak months, while rapid change in trends is anticipated. Conside- siderable differences between countries, regions August broke records thanks to the Olympic rable differences still prevail between countries, and segments. For the whole of Europe, RevPAR Games with RevPAR increasing by as much as 44 regions and segments. increased by 5 percent in the first nine months percent, due entirely to prices. The Olympics effect compared with last year. Growth markets in Eas- was however extremely varied depending on sub- Continued stable hotel market in the tern Europe and the Baltic States have seen the market and location in relation to the large arenas. US and New York strongest trends this year. The American hotel market basically follows the Prices have driven developments in most mar- Berlin country’s economy and is currently experiencing kets, while volumes have started to subside. The Disturbing signs in Germany have been noted con- good trends, particularly in comparison with the euro markets that still have growth in volume are Berlin, cerning rising unemployment and lower order-inta- zone. The United States have seen growth in Rev- Budapest, Frankfurt, Vilnius and Moscow. kes in the so-far strong industry sector. Berlin’s PAR since autumn 2010, and the recovery has con- hotel market has nonetheless seen excellent trends tinued into 2012 at a stable pace. RevPAR for the London this year, particularly compared with recent years. first three quarters rose by 7 percent compared with Outside the euro zone, the United Kingdom is also The average rate for a hotel room is still considera- last year. It is primarily higher prices that are behind the growth, thanks to a stronger company segment. However, the rise slowed in the third quarter and lan- ded at 4 percent, due probably to poorer global New York, RevPAR development per month January 2011 – September 2012 finance markets. The short-term trend is a declining rate of growth and certain weakening is to be expec- % ted. Another interesting trend is that budget hotels 12 Average price have started to come back after a few weak years. Occupancy As in previous years, New York’s hotel market 10 RevPAR lies slightly below the US average. Growth in Rev- 8 PAR for the city was 5 percent for the first three quarters, and only 2 percent for the third quarter where September developed negatively compared 6 [diagram A] 4 with last year. Growth is driven by prices and occupancy equally. 2 Uneven hotel market in Europe 0 Weak economic developments within the euro -2 zone have implied uncertainty and lower activity for the hotel sector. In general, there have been fewer -4 2011 2012 guests from the PIIGS-countries and France, and even lower demand from the finance sector. An -6 ay ay ov g g p c p ar ar b b n n n ct n r r l l Ap Ap De Au Au Se Se Fe Fe Ju Ju Ju Ju Ja Ja M M M M O N The figures are based on statistics from STR Global. Explanations: RevPAR = Income per room available 4 mar k et information from Pando x
  • 5. Hilton Helsinki Kalastajatorppa, Finland Hotel markets, YTD September 2012 – price and occupancy Boston Paris Berlin Helsinki London Copenhagen Europe New York Toronto Amsterdam Brussels Stockholm Occupancy Gothenburg Average price Oslo -5 0 5 10 % The figures are based on statistics from STR Global and Benchmarking Alliance. mar ket information from Pandox 5
  • 6. bly lower than most other large European cities rise in tourism from primarily Russia (30 percent SCANDINAVIAN OVERVIEW (less than 90 euros for the city’s overall hotel mar- increase in 2012), the United States and Japan – ket). But developments in 2012 have been good and that 2012 has been a strong event-year with Stockholm and better than expected. In the first three quar- the ice-hockey world championships and the athle- ters, RevPAR rose by 9 percent, and just in the tics European championships being held in the city. SEK third quarter RevPAR increased by as much as 17 900 percent. These good figures can be explained by Copenhagen has recovered well after a weak end strong summer months, an unusually good mee- of 2011, and is developing strongly thanks to hig- 800 tings month in September, and that the hotel mar- her average rates. The hotel market has also been ket in general benefited from that many travellers positively affected by limited additional capacity 700 who had planned to fly to or from the new airport during the year. And only a few new hotels are RevPAR did not choose to, or could not, cancel their flights expected to open next year. 600 when it became known that the opening of the air- port was delayed. On the other hand, Stockholm is showing weak figures so far this year. The market lost 11 percent 500 2007 2008 2009 2010 2011 2012 The Nordic countries’ economies in RevPAR in the third quarter and as much as continue to stand out… 17 percent just in September. The main reason is RevPAR, SEK Trend Source: Benchmarking Alliance The Nordic countries have been affected by the glo- additional capacity in the market. Several new large bal turbulence, but continue to be very stable com- hotels have opened since autumn 2011, and even pared with the situation elsewhere. Norway is show- more new hotels are to be inaugurated at the end of 2012 and next year, including Melody Hotel at Copenhagen ing signs of weakness and slowing down. Sweden’s economy surprised positively in the first half-year, Djurgården, Clarion Arlanda, Quality Hotel Friends, DKK but clear signs of a weakening have been seen and Story Sundbyberg. 650 recently. Exports have fallen further to the strong 2012 has also been a weak congress year com- krona, and unemployment is rising. Finland is also pared with both 2010 and 2011 when several slowing strongly, particularly due to fewer exports, major international congresses were held, which in 550 and growth is now the lowest within the euro zone. turn led to an increase in demand for hotel rooms. The situation in Denmark however is the worst Short-term trends for Stockholm are pointing RevPAR among the Nordic countries, where a recession is towards a downturn, due particularly to lower volu- 450 close at hand. mes but also lower prices compared with last year. …but weaker trends than anticipated in Oslo is compared with strong figures from last year 350 2007 2008 2009 2010 2011 2012 the hotel markets! further to the skiing world championships in spring As in the countries’ economic trends, the hotel 2011. Like Stockholm, the market is affected by RevPAR, DKK Trend Source: STR Global markets in the major Nordic cities have seen diffe- considerable additional capacity during the year. rent developments so far this year: But only a few new hotels are expected to open next year and ahead. In total, the Oslo market has The Helsinki market comes from low levels and is declined by 4 percent for the first three quarters, Oslo showing stable and good RevPAR growth, driven and short-term trends show a downturn in both NOK by higher prices. The market is benefiting from a price and occupancy. 700 650 600 RevPAR 550 500 2007 2008 2009 2010 2011 2012 RevPAR, NOK Trend Source: Benchmarking Alliance Helsinki EUR The Hotel, Brussels 80 70 RevPAR growth Short- Nordic region 2011 2012 H1 2012 YTD 2012 Q3 term trend RevPAR Stockholm 3% 1% –4% –11% Downturn 60 Oslo 2% –9% –4% –1% Downturn 50 Copenhagen 5% 7% 6% 2% Growth 2007 2008 2009 2010 2011 2012 Helsinki 6% 7% 6% 4% Growth RevPAR, EUR Trend Source: STR Global Source: Benchmarking Alliance (Stockholm and Oslo), STR Global (Copenhagen and Helsinki). 6 mar k et information from Pando x
  • 7. Olympic Games in London 2012 – effects on the hotel industry Fewer tourists visited the United Kingdom and that the hotels had to ignore the rules of only ter number of visitors and tourists. RevPAR up to London in August this year compared with last accepting reservations for several consecutive the end of August rose by more than 4 percent year. But those who visited the Olympic Games hotel nights. compared with last year. And just in August, pri- and the Paralympics spent more money than However, the Olympics affected hotels and ces rose by as much as 44 percent compared the tourists the previous year. parts of London in different ways. The large hotels with last year, while occupancy was at the same in western London around the traditional sights, level. July was poorer, and RevPAR declined by 4 Tourist revenues in the country have increased by museums, theatres and well-known buildings lost percent further to lower occupancy. Prices howe- 9 percent this year. According to the British Office guests and revenues, while hotels close to the ver developed strongly in July. for National Statistics (ONS), visitors to the Olympic Olympic arenas in Docklands and Greenwich How did the actual Games go? The United Games and Paralympics spent nearly twice as reported record volumes and higher prices of up States, particularly with their swimmers and athle- much as other tourists! to 40 percent. Regions and cities outside London, tes, won the most medals. China came second, The anticipated Olympics boom failed to such as Liverpool and Manchester, did not howe- followed by Great Britain. The British sporting appear for the hotel sector. Revenues for London ver succeed to benefit from the Olympic Games results were fantastic, and their organisation of hotels during the Olympics weeks increased by as many had hoped. But in general, the results of the Games was excellent. One of the highlights for only 10 percent, further to slightly higher the summer are considered to be very positive – the host nation was when the Scot Andy Murray occupancy and above all higher prices. Prior to particularly in the prevailing circumstances with won the tennis final in Wimbledon against the the Games, the Olympic Committee, LOGOC, around 7,000 new hotel rooms being added world’s number 1 Roger Federer. Another given had pre-reserved a large number of hotel rooms before the Games, that the market came from climax was king Usain Bolt’s performance in where only reservations for a long hotel stay were record-strong figures from summer 2011, and that athletics with three gold medals! accepted. The strategy proved to be over-opti- the economic climate is weak in Europe. Sweden won a total of eight medals, of which mistic and thousands of empty hotel rooms were Short-term trends for London are also show- one gold, and came 36th in the medals league. In released onto the market just before the Games ing stable growth. The additional capacity has total, 85 nations of the 204 that participated, won were to start, which led to reduced prices and been well-absorbed by demand, thanks to a grea- at least one medal. mar ket information from Pandox 7
  • 8. ThEMe social projects Olsson: “To create a purposeful future for young people is a victory in itself” Name: Staffan Olsson Age: 48 years Family: Married, 2 children Home: Tumba Best quality: Impatient Worst quality: Impatient Occupation: Employed by Pandox since 2009 as Director of Health, Sports & Coaching. National team manager for the Swedish handball team. 8 mar k et information from Pando x
  • 9. He has won the World Championship, European Championship, a second place in Champions League, and most recently an Olympic sil- OLYMPICS 2012 ver medal in London. Staffan Olsson is now starting his next match together with Pandox Youth Handball Movement – a social project to Sweden’s road to the silver provide young people in the Kenyan town of Nyeri with a better future through training, solidarity and education. “To create a purposeful future for young people is a victory in itself,” says the national team manager of the Swedish handball team. Staffan Olsson is back in Stockholm. The handball legend has returned home after several months of preparations and hard work that in the end paid off with an Olympic silver medal in London – the achievement best result by a Swedish national team for ten years. “It has been an extremely intensive period, but has also been a fantastic journey. To win an Olympic silver medal is completely unbelievable,” he says. The national team manager has recently moved his focus onto the very tough qualifying matches prior to the European Champion- ships 2014, which started in November. With two matches won National team manager Staffan Olsson and the national against Ukraine and Holland, Sweden has managed an excellent handball team had a tough start at the Olympic Games start prior to the forthcoming qualifiers next year. in London. But the immediate future also contains other challenges. Towards the end of the summer, it was decided that Pandox, with the help of After two heavy losses in the group matches (Iceland 32–33, Staffan Olsson, would intensify its development of the Pandox Youth France 23–26), the Swedish team met the European cham- Handball Movement. pions Denmark in the quarter-final. “I have been interested in social projects for some time now, but it “We are in a disadvantageous position,” said Staffan has not really fitted in before. But this project feels absolutely right,” O ­ lsson to SVT. says ­ taffan Olsson. S The quarter-final was dramatic and was determined with The Pandox Youth Handball Movement was started in November only one minute left, when Niclas Ekberg thundered two 2011 in the Kenyan town of Nyeri, north-west of the capital city of Nai- balls into goal to claim a victory of 24–22. The upset robi. The town has several slum areas where children live each day became fact and the TV expert Magnus Grahn screamed with drugs and poverty. In collaboration with the local handball club, Mount Kenya Sports Group (MSG), Pandox aims to gain the attention out his pleasure: of young people and create a purposeful future. “We have higher mountains, we have a better-looking “It is about young people who have got into difficult situations and queen, we can ski, and we are better at handball.” have a tough life. Some of the children live in poverty and have no edu- Sweden then won against Hungary in the semi-final, and cation or work, and live in some form of addiction,” says Olsson. met France in the final. But the reigning champions were too About one year ago, the activities embraced 200–400 children, and strong. Sweden nonetheless pressed the super team, but the number has now increased to more than 600 members. lost by just 21–22, which was Sweden’s best result for ten But the project management at Pandox and MSG are far from satis- years. fied. The project will now move onto the next stage with Sweden’s “It feels really tough after putting up an incredible fight,” most experienced handball trainer. said Staffan Olsson to SVT. “I believe that we can do a really good job here. Interest in the sport The national team is now looking ahead to the European and the project continues to grow,” says Staffan Olsson. Championship qualifiers, which started on 1 November A training camp is planned for February 2013 in Nyeri, where child- against Ukraine in Lund and the Dutch team Almere on ren and young people can practice handball at the same time as 3 November. obtaining information and advice about relations and health issues. Staffan Olsson will play an important role as training coach and inspirator. “We believe that sport with a team spirit and models can create the preconditions to reach out. It is a way of creating prerequisites for young people to shape their own future. Results of the Olympic matches Group matches: Sweden – Tunisia......................................... 28 – 21 Great Britain – Sweden............................. 19 – 41 … Pandox Youth Handball Sweden – Iceland........................................ 32 – 33 Movement Sweden – Argentina................................... 29 – 13 France – Sweden......................................... 26 – 23 Quarter-final: Sweden – Denmark.................................... 24 – 22 The objective of the Pandox Youth Handball Movement is to create better future opportunities and purposeful leisure time for children and Semi-final: young people in the Kenyan town of Nyeri, north-west of Nairobi. The Sweden – Hungary...................................... 27 – 26 project is managed in collaboration with Partille Cup, the world’s largest and most international handball tournament for young people, and the Final: Kenyan handball club MSG. Further information about the project and Sweden – France......................................... 21 – 22 previous articles are available at www.pandox.se/foretagsansvar mar ket information from Pandox 9
  • 10. Focus on flying The super Berlin Brandenburg airport – when will it actually open? The announcement that the planned official ope- ning date of 3 June 2012 could not be held came three weeks before the intended inauguration and traffic start-up. The reason given was that the airport’s fire-protection installations were not ready to be put into operation. The delay is of course a genuine loss of prestige for the public authorities concerned and the airport management. But it is also a significant setback for Lufthansa and Air Berlin, who have considerable plans to expand their traffic to Berlin when the city obtains a new super airport that replaces the two older ones. According to preliminary information, the new airport was to open in August 2012. But it soon became known that it was unclear whether the systems could be ready to be put into operation for other parts of the terminal building, and the delay became worse. A new announcement was made by the airport management in May this year: the airport would open on 17 March 2013. However, after further inspection of the building problems, the date has now been set to 27 October 2013. UpGrade is following developments carefully! Poorer flying accessibility in the Stockholm region Compared with Helsinki and Oslo, Stockholm has relatively good availability with flights to the rest of the world. Even if Copenhagen, where SAS has its major hub, is in a better position, it is reasonably easy to fly from Stockholm to a large number of other cities across the world. Nonetheless, availa- New times – new reservation patterns A new Swedish survey shows that an increa- Most people reserve hotel rooms via booking sites sing number of guests make hotel reservations via the major booking sites, and the market for How do you normally reserve mobile applications has just started. hotel rooms when you travel as 18–29 30–39 40–55 56–80 a private individual? Total years years years years The HUI Research Institute has carried out a preli- Via the Internet through a booking site 44% 53% 41% 45% 39% minary study of reservation patterns in Sweden, Via the hotel's or hotel chain's own site 30% 22% 36% 30% 31% where 1,000 people between 18 and 80 years old were asked how they usually reserve their hotel By calling directly to the hotel or hotel chain 12% 8% 10% 12% 14% rooms when they travel as private individuals. Of By sending an email to the hotel or hotel chain 2% 2% 1% 2% 3% those who frequently stay at hotels, 44 percent By mobile phone via apps from booking sites 1% 1% 2% 0% 0% replied that they use sites such as Hotels.com, Expedia and Booking.com. The younger the per- By mobile phone via the hotel's or hotel son, the more common it is to use the booking chain's own app or mobile site 0% 0% 0% 0% 0% sites. In the age-group 18–29 years, as many as 53 By asking a travel agent to book the hotel 2% 2% 5% 1% 4% percent say that they make their reservations via Do not book in advance, but go directly to the various booking sites. hotel (walk-in) 1% 1% 0% 0% 1% Remarkably, only 1–2 percent of those surveyed Other 1% 0% 1% 2% 1% have used the possibility to book via applications in their mobile phone. This will probably change in the Don't know / Do not book myself 6% 8% 3% 6% 6% 10 mar k et information from Pando x
  • 11. Five questions to Jan Henningsen, manager of Hotel BLOOM!, Brussels. bility from Arlanda has fallen in the last five years while increa- sing in other Nordic capital cities. This is due partly to the American airlines such as Delta and US Airways having d ­ iscontinued their flights to Atlanta and Philadelphia. A new report from the consultancy firm Copenhagen Eco- nomics says that the Stockholm region could benefit consi- derably if Arlanda obtained ten new direct routes, particularly to long-distance destinations. The report believes that Stockholm’s accessibility by air has become poorer, which costs money both for travellers and for the region as a whole in the form of lower production. 1 You have returned to Belgium after many years in the United States where you held various management positions at such well-known hotels as the Kempinski Checkers Hotel in Los Angeles, the Wyndham However, it is the airlines that decide where they will open Ambassador West Chicago and most recent as General Manager of The new routes. The challenge for Arlanda is quite clear further to Standard West Hollywood in Los Angeles and The Standard Los Angeles SAS choosing to start a new direct flight to San Francisco Downtown. What to do you believe is the main difference with working in next April – which will leave from Copenhagen, not from these different markets? Stockholm. Jan: Each market has its own rhythm over a year that dictates the strategies that have The report believes however that the situation can change to be employed to maximize the hotel’s potential. Large conventions set the tone in rapidly. For example, Copenhagen could have difficulty in cities while the seasons have a huge impact on resorts. It defending its position when the new Berlin Brandenburg finally opens. This in turn could make Stockholm Arlanda is always important to understand the strengths and weaknesses of your own properties compared with the “Brussels is a very more attractive for airlines. competition in order to target your sales efforts accor- According to new statistics from the Swedish Civil Aviation dingly. The good news is that the same reports, such as Administration, the number of movements in Swedish air- space decreased during seven consecutive months up to STR etc., are used almost everywhere making it easier to understand where the market is in terms of rate and stable September 2012. Just in September alone, traffic declined in market” occupancy. Labor laws and union contracts vary as well the whole country by 5 percent compared with last year. After but are not a huge adjustment if you work with a good ten months, the overall decrease in traffic is just over 2 per- team like I do at Hotel BLOOM! cent. However, the statistics are better for Stockholm Arlanda. Air traffic to and from Arlanda up to September increased by 4 percent compared with the same period last year. 2 We are a bit curious, have there been any special surprises as you take up your new role as the General Manager of Hotel BLOOM!? Jan: I was very surprised by how weak weekend demand is considering how much Brussels has to offer. There seems to be some type of festival almost every week and the city is an easy drive from the Netherlands, Germany and France plus rates are low. The same goes for how slow the summers are. 3 What do you believe is the difference from now being a non-branded operator compared with your previous positions? What significance do you believe a brand or hotel name has for your operations? Jan: My objective is to enhance the BLOOM! brand to become as successful as the pervious companies I have worked for. The difference is that previous positions were at hotels that had already reached a higher level of brand awareness. future, and mobile websites and apps are expected to com- Choosing a brand for a property is difficult. The advantage of choosing to run it as pete with the traditional booking sites. an independent hotel is that you can create a tailor-made product for a specific The sector and employer organisation Visita is interested market and audience that can inspire a higher level of interest and guest loyalty in the question of reservation patterns, and has ordered a since it cannot be replaced by just any other hotel room. broad mapping and analysis of the market – partly to see 4 what the organisation as a whole can do and relate to the Hotel statistics for Brussels for the first nine months of 2012 were booking channels, and partly to be able to provide advice to relatively weak. How do you feel about the Brussels hotel market for hotels within the new sales scenario. The mapping has star- the forthcoming year? ted and is expected to be ready in the beginning of next Jan: My impression is that Brussels is a very stable market. We are expecting year. UpGrade is following the results with great interest! demand to be in line with targets for this year. 5 Hotel BLOOM received a top ranking from TripAdvisor last year, and was selected #13 of the Trendiest Hotels in the World. What would you say is unique about Hotel BLOOM? Jan: A rating like this is only possible if you have a great team taking care of every aspect of the guest experience. This, combined with the well thought-out design of the property, created the enjoyable experience that made our success possible. mar ket information from Pandox 11
  • 12. Pandox news News from the world of Pandox Cirque du Soleil at Crowne Plaza Brussels Workout with a view! At The Hotel Brussels, the view The hotel staff at Crowne Plaza Antwerpen was over the city from the fitness centre is magnificent. invited to the spectacular opening show of Cir- que du Soleil – “Corteo”– as a special thanks for all appreciated service and hospitality during their long term stay at the hotel during the sum- mer months. The show was just amazing and the Antwerp Team is now looking forward to host the next show in Antwerp again! Much appreciated circus art in Antwerp. 1 million new guests Inspired by similar urban projects and in coo- Great skyline view at The Hotel Brussels peration with experts The Hotel Berlin, Berlin The 10 top floors of the 27 stories high building have been completely renovated and have been has set up twenty beehives on the roof. Each given a surprising elegant new identity. Guests can now fully enjoy more than 120 rooms and sui- beehive counts around 50,000 bees which tes, The Urban Spa & Fitness, the Panorama Lounge and eight meeting rooms on the top floors. All mean the hotel now has around 1 million new come with the new timeless and stylish decor, combined with fantastic skyline views of Brussels! guests. The hotel aim to continue the activities around the successful F&B concept ‘Sense & Season’, to focus more on seasonal and regio- nal culinary offers and to be protective of highly Grand prix at Hyatt Montreal – huge success valuable and important bees. With hardwor- Hyatt Regency Montreal hosted Les Prix Gémeaux king bees on the roof, more than the annual annual awards in October. One thousand guests requirement of the hotel is covered. including celebrities from Quebec’s television indu- About 15 kg of honey will stry gathered to recognize their peers in a memo- be produced per month! rable evening. The awards were presented at Montreal’s Performing Arts Centre followed by a New arrivals at the gala at the SIX Resto Lounge at the hotel. Hotel Berlin, Berlin. Party atmosphere with TV personalities at the Hyatt Montreal. Street art in Hotel Bloom! When it comes to graffiti, Belgium street artist, Bue the Warrior, is in a league of his own. He is single- handedly turning the concrete jungles of Belgium into a colorful, happy, whimsical world that is inha- bited by a whole race of friendly-faced creatures. Now the artist has expressed himself creatively in Diamond fever the lobby of Hotel BLOOM! and the result is great! for happy finder at the Holiday Inn Brussels Airport. Colour and fantasy at the Hotel BLOOM! in Brussels. Diamonds are forever At the occasion of the 60th anniversary of Holiday Inn Hotels Group eight one-carat diamonds were left under the pillows of eight rooms somewhere in Europe. One of the diamonds was found at the Holiday Inn Brussels Airport by this lady on the picture next to GM Charles Boelen. She discove- red the diamond only the next morning! That’s Read more news about what we call a good night’s sleep! Pandox at www.pandox.se