The following strategies have been defined to enable Pandox to achieve its established goals and objectives.
Pandox’ principal strategy is to own one type of property – hotel properties.
PORTFOLIO STRATEGY
In order to maximise revenues and cash flow, Pandox concen- trates on one prioritised, expansive market segment. Pandox’ market segment comprises of large hotel properties in Sweden, capitals and major cities in Europe and North America, as well as developing regions in Eastern Europe. The hotel properties shall be centrally situated in natural and strong hotel locations such as city centres, airports and exhibition centres. The hotels shall be in the medium to high price range, and focus on business travellers and tourists. Pandox believes that hotels included in these market segments have the best chances of success in a growing hotel economic cycle, while risks are limited in the event of a downturn. This is due to hotel markets in large locations being more stable and having better growth potential, as they attract more capital and people. Strong and strategic locations are always important in the hotel industry, and the size of the hotel provides profitability benefits – which in turn increases Pandox’ potential for improved return on investment.
STRATEGY FOR ACTIVE OWNERSHIP
Pandox further develops its focus and expertise in the chosen market segment through active ownership. Active ownership is adapted to each situation with regards to both procedures and partnership strategy, with the aim to add value through higher cash flow or through limiting the risk involved. Examples of active ownership are set out below.
ACQUISITIONS
Pandox has built up its own expertise in the field of acquisitions and acquisition methods. This implies that Pandox analyses, evaluates, negotiates and executes all acquisitions in-house, and enables a deep insight into acquisitions and their real potential and risks, while increasing knowledge of the market.
CHOICE OF PARTNERS
Pandox works together with all competitive market players where joint forms of cooperation can be developed and applied for the optimisation of total cash flow.
STRATEGIC ALLIANCES
Pandox can deepen the cooperation with its prioritised partners in order to jointly make acquisitions and undertake restructuring programs or major investments.
LEASES AND AGREEMENTS STRUCTURE
Pandox enters into all forms of leases and management agreements to create joint incentives and benefit the development of total cash flow.
OWN OPERATIONS
Pandox has its own expertise for operating hotels. Experience has shown that there are situations when this is the most profitable and most effective way of improving cash flow.
PARTICIPATING IN THE RESTRUCTURING PROCESS
Pandox plays an active role in the ongoing restructuring of the hotel property market. This implies that Pandox participates through acquisitions, divestments and choice of partner.
CASH FLOW STRATEGY
Pandox adapts to each individual situation with the support of the working methodology of the Pandox Model. Pandox is thus able to actively participate in the development and implementation of cash flow strategies together with its partners.
DIVESTMENTS
Pandox cultivates its portfolio in accordance with its portfolio strategy. The majority of divestments are managed directly by the Company.