Pandox AB (publ) and Scandic Hotels renew leases for 19 hotels in the Nordic region

The hotel property company Pandox and the hotel operator Scandic Hotels have
renewed and extended lease agreements for 19 hotels in the Nordic region. The
lease agreements have a duration of up 15 years and include a joint renovation
programme of MSEK 470 over three years, of which Pandox’s share amounts to
approximately
half.

“Scandic Hotels have successfully operated the hotels over a long period of time
and we are pleased to be able to present an extension of the lease agreements.
With renewed leases and joint investments we are strengthening both our
strategic partnership and joint product offering in the Nordics”, says Erik
Hvesser, Vice President and Area Manager Sweden & Finland at Pandox.

The lease extension includes 19 hotel properties in the Nordic region with
Scandic Hotels as hotel operator, of which eight in Sweden, six in Finland,
three in Denmark and two in Norway with lease expirations particularly during
2017-2020. The total number of rooms amount to 3,437.

As part of the lease extension the parties have agreed to invest a total of MSEK
470, of which Pandox’s share amounts to approximately half, in renovation of
some 1,600 hotel rooms and bathrooms, upgrades of the hotels’ Food & Beverage
offering, conference facilities and public areas, as well as some technical
upgrades. Included in the investment, which is expected to be made 2017-2020, is
the creation of 73 new hotel rooms. The implementation follows the cooperation
model established by Pandox and Scandic Hotels in the earlier completed Project
Shark, which comprised renovation, upgrade and development of 40 hotels in the
Nordic region.

The lease extension and investment combined will contribute to an increase of
the revenue potential for both Pandox and Scandic Hotels through more
competitive hotel products.

FOR MORE INFORMATION, PLEASE CONTACT:
Anders Nissen, VD, +46 (0) 70 846 02 02
Erik Hvesser, VP, Area Manager, Sweden & Finland, +46 (0) 70 770 01 19
Anders Berg, Head of Communications and Investor Relations, +46 (0) 76 095 19 40
Pandox AB (publ) is required to publish this information under the Swedish
Securities Market Act and/or Financial Instruments Trading Act. The information
was submitted for publication on 30 June 2016 at 08:00 CEST.

About Pandox
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 113 hotels with more than 24,000 hotel rooms in
eight 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, as of 18 June 2015, listed on Nasdaq Stockholm. www.pandox.se