PANDOX ACQUIRES THE HOTEL PROPERTY, GRAND HOTEL BORÅS



The acquisition price, including deferred taxes is approximately 70 MSEK. The operating net, on a yearly basis is estimated to be 5,6 MSEK, corresponding to a yield of 8,1 percent. Pandox income, after tax, will increase by 1,0 MSEK. Income per share will increase by SEK 0,07 and cash flow per share will improve by SEK 0,14.

In Borås the hotel market consists of 6 hotels with an average of 86 rooms per hotel. The largest is the Grand Hotel Borås with its 158 rooms, followed by Scandic Hotel Plaza with 135 rooms and Hotell Vävaren with 97 rooms.

-Borås is included in Pandox' priority cities and Grand Hotel Borås is its largest and best known business hotel. The hotel is situated in an excellent location in the center of Borås. This acquisition constitutes the fourth hotel property transaction made by Pandox in 1999 and we continue to consistently implement our strategy, says Anders Nissen, Managing Director, Pandox Hotellfastigheter AB.

For further information: <br> <br>Bengt Kjell, Chairman of the Board, Pandox Hotellfastigheter AB, 08-506 205 50 <br>Anders Nissen, Managing Director Pandox Hotellfastigheter AB, 08-506 205 50, 0708-46 02 02 <br> <br>Pandox Hotellfastigheter AB has been noted on the O-list of the Stockholm Stock Exchange since June 23, 1997 and owns 30 hotel properties in Sweden after the acquisiton of the hotel property Grand Hotel Borås. 60 percent of rental revenues are from the three largest hotel markets in Sweden, Stockholm, Gothenburg and Malmö. Result- and revenuebased leases account for over 65 percent of rental revenues. <br>

About Us

Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox's hotel property portfolio comprises 122 hotels with approximately 27,000 hotel rooms in eleven countries. Pandox's business is organised into Property Management, which comprises hotel properties leased on a long-term basis to market leading regional hotel operators and leading international hotel operators, and Operator Activities, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company's B shares are listed on Nasdaq Stockholm.

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