Pandox AB has reported a third-quarter profit of SEK 637m (£50m) and EBITDA) of SEK 1.2bn (£95m), reflecting year-on-year increases of 7% and a sharp recovery from a SEK 39m (£3.1m) loss a year earlier.
The Stockholm-based hotel property owner said total revenues rose 5% in the quarter, supported by stronger leisure demand and a full event calendar. Revenues from leases increased 2% to SEK 1.09bn (£86m), while revenues from own hotel operations climbed 10% to SEK 883m (£70m). Net operating income rose 4% for leases and 26% for own operations.
Cash earnings reached SEK 617m (£49m), equivalent to SEK 3.17 per share (£2.50). Adjusted for SEK 37m (£2.9m) in financial costs tied to the planned acquisition of Dalata Hotel Group plc, cash earnings rose 7%.
Pandox and its joint-bid partner Eiendomsspar AS announced in July a recommended cash offer for Dalata, which is expected to complete in the fourth quarter. On completion, 31 investment properties valued at about SEK 16.7bn (£1.32bn) will be added to Pandox’s leases portfolio. The hotels are forecast to generate annual rental income of roughly SEK 1.2bn (£95m) with an initial yield of 6.95%.
Anders Nissen, chief executive of Pandox, said: “The hotel market improved in the third quarter, supported by a good event calendar and a leisure travel segment that remained active. Pandox’s total revenue and net operating income increased by 5% and 8% respectively, supported by both acquired and organic growth.”
For the nine months to 30 September, revenues from leases totalled SEK 2.95bn (£233m), and revenues from own operations reached SEK 2.44bn (£193m). EBITDA for the period rose to SEK 3.09bn (£244m) from SEK 2.95bn in 2024. Profits increased to SEK 1.47bn (£116m), or SEK 7.45 per share (£0.59), compared with SEK 1.13bn (£89m) or SEK 6.02 (£0.49) per share a year earlier.
According to Nissen, the Dalata acquisition “has a clear strategic and financial logic”, describing the portfolio as “high quality” and “very profitable”, with strong positions in “dynamic and growing markets”.
He added: “Providing that the Dalata acquisition is completed at the beginning of November 2025, we will benefit from revenue and net operating income from part of the fourth quarter. The effect on our earnings will, however, be negative in the fourth quarter due to one-time costs relating to the acquisition.”
