Pandox AB Class B · OMXSTO:PNDX_B
Pandox AB Class B — Q2 2023 Earnings Presentation
26 slides from Pandox AB Class B's earnings presentation, Jul 14, 2023
Slide 1: European Hotel Performance Update
European Hotel Performance Update Pandox Earnings Call 14th July 2023 All information is provided “as is” and only as of the date referenced and may change. While the information is believed to be accurate, neither CoStar Group nor STR guarantees that it is free from error, omission or misstatement.
Slide 2: Do we need to worry about a recession?
Do we need to worry about a recession? Source: STR. © 2023 CoStar Group 2
Slide 3: Hotel occupancies have all but returned to pre-covid levels
Hotel occupancies have all but returned to pre-covid levels Global Occupancy indexed to 2019, June 2021 – May 2023 120 96 100 80 60 40 20 0 Jul-21 Jul-22 Jun-22 Jan-22 Jun-21 Sep-21 May-22 Sep-22 Jan-23 Apr-23 May-23 Aug-21 Aug-22 Nov-21 Feb-22 Apr-22 Mar-22 Nov-22 Feb-23 Mar-23 Oct-21 Oct-22 Dec-21
Slide 4: Post-COVID occupancy recovery now in line with GFC
Post-COVID occupancy recovery now in line with GFC Global* occupancy recovery index, GFC and COVID 2007 Occ Index (Dec 07 - Nov 13) 2019 Occ Index (Dec 19 - Apr 23) 120 100 80 60 40 20 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 Months *Ex
Slide 5: Recovering airline capacity should stimulate further demand
Recovering airline capacity should stimulate further demand Global airline capacity (seats) Source: STR. © 2023 CoStar Group 5
Slide 6: Which clearly translates into occupancy recovery by region
Which clearly translates into occupancy recovery by region Occupancy (Std), May YTD 2023 and YTD % change to 2019 Europe North America Mainland China 64% 62% -5% 62% -4% -3% Middle East Northern Africa Central America Asia (excl. Mainland China) 68% 56% 64% 63% 0% -9% -5% 7% Australia & Oceania 58%
Slide 7: COVID ADR cycle two years shorter than GFC
COVID ADR cycle two years shorter than GFC Global* ADR, USD, constant currency, recovery index, GFC and COVID 2007 ADR Index (Dec 07 - Jan 2012) 2019 ADR Index (Dec 19 - May 2023) 140 120 100 80 60 40 20 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Months *Excl. Turkey, Le
Slide 8: ADR growth in most regions except China is ahead of inflation
ADR growth in most regions except China is ahead of inflation ADR (USD & CC), May YTD 2023 and YTD % change to 2019 Europe North America Mainland China 142 156 26% 69 19% 3% Middle East Northern Africa Central America Asia (excl. Mainland China) 188 120 127 170 27% 17% 83% 20% Australia & Oceania 10
Slide 9: What's driving performance going forward?
What’s driving performance going forward? Source: STR. © 2023 CoStar Group 9
Slide 10: Europe: Recovery to continue despite economic challenges
Europe: Recovery to continue despite economic challenges % relative to 2019 levels Source: STR. © 2023 CoStar Group 10
Slide 11: What about Europe? RevPAR growth rebounded last spring
What about Europe? RevPAR growth rebounded last spring Europe, % change to 2019, January 2022 – May 2023 Occ % change ADR % change RevPAR % change 40% 30% 20% 10% Avg. RevPAR index 116 0% -10% -20% -30% -40% -50% jan-22 feb-22 mar-22 apr-22 maj-22 jun-22 jul-22 aug-22 sep-22 okt-22 nov-22 dec-22 jan
Slide 12: Lead by Italy, Ireland, France & UK
Lead by Italy, Ireland, France & UK European Countries, RevPAR (STD &LC), indexed to 2019, May YTD 2023 Why is DACH behind? 99 127 • More conservative domestic demand 106 95 • Lack of group recovery (Germany) 113 • Limited luxury & leisure 92 139 • Limited dollarized travellers 111 138 124 115 98 12
Slide 13: Gateway cities no longer lag country level performance
Gateway cities no longer lag country level performance European markets, RevPAR (Std & LC), indexed to 2019, May YTD 2023 Under 80 80 - 89 (EUR) 90 – 99 100+ Source: STR. © 2023 CoStar Group 13
Slide 14: Hamburg has highest occupancy YTD, and Mannheim is in demand
Hamburg has highest occupancy YTD, and Mannheim is in demand Occupancy (Std), May YTD, 2019 & 2023 2019 2023 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: STR. © 2023 CoStar Group 14
Slide 15: Situation improving, Hamburg & Cologne exceeding 2019 occupancies
Situation improving, Hamburg & Cologne exceeding 2019 occupancies Occupancy (Std), January – May, 2019 & 2023 2019 2023 Berlin Frankfurt Hamburg Cologne Munich 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jan Feb Mar Apr May Jan Feb Mar Apr May Jan Feb Mar Apr May Jan Feb Mar Apr May Jan Feb Mar Apr May S
Slide 16: ADR shows a sea of green
ADR shows a sea of green European markets, ADR (LC), indexed to 2019, May YTD 2023 Under 80 (EUR) 80 - 89 90 – 99 100+ Source: STR. © 2023 CoStar Group 16
Slide 17: ADR consistently ahead wherever you go across Germany
ADR consistently ahead wherever you go across Germany ADR (EUR), May YTD, 2019 & 2023 2019 2023 140 € 120 € 100 € 80 € 60 € 40 € 20 € 0€ Source: STR. © 2023 CoStar Group 17
Slide 18: Berlin & Hamburg showcasing consistent rate increases
Berlin & Hamburg showcasing consistent rate increases ADR (Euros), January – May, 2019 & 2023 2019 2023 Berlin Frankfurt Hamburg Cologne Munich 180 € 160 € 140 € 120 € 100 € 80 € 60 € 40 € 20 € 0€ Jan Feb Mar Apr May Jan Feb Mar Apr May Jan Feb Mar Apr May Jan Feb Mar Apr May Jan Feb Mar Apr May Sou
Slide 19: Unlike the US, Europe is still seeing growth across the week
Unlike the US, Europe is still seeing growth across the week Europe*, Occ % change YOY, Jan 2023 – May 2023 Jan Feb Mar Apr May 70% 60% 50% 40% 30% 20% 10% 0% Shoulder (Sun, Thu) Weekday (Mon-Wed) Weekend (Fri, Sat) *Excluding Turkey Source: STR. © 2023 CoStar Group 19
Slide 20: Weekday / corporate demand is driving recovery now
Weekday / corporate demand is driving recovery now Europe, occupancy % change to 2019, weeks ending 29 Apr – 24 Jun 2023 15% 10% 5% 0% -5% -10% -15% -20% 29 Apr 24 Jun 29 Apr 24 Jun Weekday Weekend Source: STR. © 2023 CoStar Group 20
Slide 21: … and group demand appears to follow suit
… and group demand appears to follow suit Europe, segmentation Demand % change to 2019, weeks ending 29 Apr – 24 Jun 2023 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% 29 Apr 24 Jun 29 Apr 24 Jun Group Demand Transient Demand Source: STR. © 2023 CoStar Group 21
Slide 22: This is enabling resilient ADR growth although it may taper from July
…..this is enabling resilient ADR growth…..although it may taper from July Europe*, ADR % change YOY, Jan 2023 – May 2023 Jan Feb Mar Apr May 30% 25% 20% 15% 10% 5% 0% Shoulder (Sun, Thu) Weekday (Mon-Wed) Weekend (Fri, Sat) *Excluding Turkey Source: STR. © 2023 CoStar Group 22
Slide 23: However, business on the Books is still looking strong
However, business on the Books is still looking strong Occupancy on Books, percentage point change vs STLY at 26th June 2023 Edinburgh +5 London Amsterdam +2 +7 Dublin +4 -7 Berlin Brussels +7 +15 Budapest Paris 0 +10 Zurich Rome +7 +6 Madrid -10 Istanbul Lisbon +7 Source: STR. © 2023 CoStar Group 2
Slide 24: Long-term outlook remains robust
Long-term outlook remains robust European cities*, KPIs indexed to 2019, Historical 2019 – 2022, Forecast 2023 – 2027 Demand Occ ADR (EUR) RevPAR (EUR) 40% 20% 0% -20% -40% -60% -80% -100% 2019 2020 2021 2022 2023 2024 2025 2026 2027 *Aggregated performance of Amsterdam, Athens, Amsterdam,Athens,Bar
Slide 25: Conclusions
Conclusions Area Takeaway 1. Hotel demand Globally, very close to fully recovered 2. Room rates Recovered in real terms, growth in 23 harder 3. Business travel Back and with potential for further recovery 4. Leisure Loosing last year's lustre 5. Outlook Industry is resilient to recession risks to da
Slide 26: Thank You!
Thank You! Thomas Emanuel | Senior Director – STR temanuel@str.com Source: 2023 STR, LLC / STR Global, Ltd. trading as "STR". © CoStar Group. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR is strictly prohibited. Any such reproductio