Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Pandox Q4 year end for 2017 report. At this time, all participants are in a listen-only mode. There will be a presentation, followed by a question and answer session. At which time, if you wish to ask a question, you will need to press star and one on your telephone and wait for your name to be announced. I must advise you the conference is being recorded today on Thursday, February 15, 2018. I'd now like to hand the conference over to your speaker today, Anders Nissen, CEO of the company. Please go ahead.
Well, good morning, and welcome to this presentation of Pandox year end report 2017. As she said, I am Anders Nissen, the CEO of Pandox. With me I have our CFO, Liia Nõu, and Anders Berg, Head of Communication and Investor Relations. This presentation is divided in two parts. We will start with presentation of the quarter, followed by Q&A session. Let's turn to page two, please. Yes, we named this report Solid Fourth Quarter and a Strong Full Year. The total cash earnings increased by 54% for the quarter and 29% for the full year. The return on equity was 18% on an annual basis. This positive development has a few, let's call it three main drivers. High performance acquisition. We had acquired 23 hotels over the report period. We have improved profitability in both business segments. Property management has a strong rental increase.
Operator Activities has a good performance in our own hotel business. Overall, a stable hotel market. Like-for-like, the Property Management increased net operating income by 6% for the quarter and 4% for the full year. Like-for-like Operator Activities increased net operating income by 25% for the quarter and 28% for the full year. Please note that the hotel property portfolio in U.K., which we acquired in December, was included per December 20. Let's page the next page, please. Let's have a specific look at the NOI development over the quarter and the year. On the fourth quarter, Pandox net operating income increased by SEK 136 million and increased by 27%. For the full year, total net operating income increased by SEK 442 million, an increase of 23%. Again, a few strong drivers. Well-performing acquisitions, so coming in as planned.
Continued recovery in hotel market in Brussels. A positive mix effect where leases we signed out in Europe, the operator takes a bigger proportion of the property cost, which gives us a positive mix. Overall, a stable hotel market. On the negative side, there is a new room capacity in Stockholm has increased, and that put some pressure on the RevPAR, despite on good underlying demand. Copenhagen has a strong comparison in last quarter because of very strong end of 2016, which has effect on the growth negatively. If we go to the next page number four, that shows the pace throughout 2017. If we start in December 2016, we acquired seven hotel properties in Europe for EUR 415 million. That was a good start for 2017, which started already, as I said, in December.
In January, we signed seven new lease agreements with Scandic in the Nordics. That was mainly hotels we were taking over, where the former operator would not fulfill his obligation and did not want to sign market lease. Then we take them over, we develop them, and then when they were ready for lease out again, we were happy to sign up with Scandic, our biggest partner.
In April, we acquired Hotel Berlaymont in Brussels, a city center located hotel with 220 rooms. In July, we acquired 400 rooms hotels, Hilton London Heathrow, called T4, and re-entered into the U.K. market. In December, it was a lot of activities. First, the landmark transactions in U.K. and Ireland. We signed two lease agreements in NH in Brussels, where we export our business model to Brussels. We completed a direct share issue, and we divested a retail property in Brussels.
It was a Prada shop, was located in the reception area in the hotel, which we could sell for a high profit. And we also reclassified one small hotel property in Brussels to Operator Activities. If we go to page five, please. The most important event of the quarter and the year was, of course, the acquisition of Jurys Inn in U.K. and Ireland, where we are happy to acquire 21 high-quality hotel properties for a price of EUR 680 million. That is a small recap. The EUR 680 million, which was Pandox's part of the acquisition, reflecting a yield of 5.8%. As I said, 21 hotels, which establish us in full U.K. and in Ireland. Strong markets like Dublin, London, Glasgow, Belfast, and Cardiff, and also strong domestic markets like Manchester, Leeds, Sheffield, Oxford, to name a few.
All in all, 4,700 rooms, EUR 1.6 million value add per room, which is much lower than what it would cost to build new hotels. So we believe this is a very good acquisition, as we call it, a landmark. The model is that we have signed a 25 years rental lease agreement with Leonardo Hotels under the brands of Jurys Inn for these 20 hotels and one hotel we operate ourselves, that is the Hilton Garden Inn in Heathrow, a 367 rooms hotel. To sum up, we see a growth potential in the portfolio due to a stable market, but also that we see it possible to invest in hotels and some of those investments already done, have not had their full potential yet. Next page, please. Sorry. The Pandox portfolio overview has developed a step again. We own 143 high-quality hotels in the premium and upper mid-market segment.
At the end of the quarter, the property portfolio was at a total market value of SEK 50.1 billion. 127 of these are owned and leased, representing around 85% of the value, and 16 of these hotels are owned and operated, representing 15% of the property value. Next page, please. This we call the new world of Pandox. As you can see, the company grew with our geographic strategy and active strategy that we have had since we came back to the stock market, where the international share of the portfolio has increased in recent years.
We are now present in more than 80 cities and 15 countries, and we have a well-balanced and attractive mix of international and domestic destinations. You all know that has given us better potential but also lower risk. So good to have and then much stronger than to just have our base in the Nordics.
On the table to the right, we outlined the change of exposure that has taken place from 2015 to 2017. As you can see, we have increased our exposure to larger dynamic markets like in Germany and U.K. and reduced it to Nordic. Nordic is a strong hotel market, profitable hotel market, but we need to have more countries and more cities to both have a stronger potential and lower our risk. Sweden is our largest market, as you can see, for 29%, and then Germany and U.K. is there, and then you can see the rest coming in one line. Next page, please. Here we present the map of the operators and brand we work with and the share of total rooms. The table to the right, we outlined the change in exposure from 2015 to 2017.
As you can see, we have increased our exposure to new operators and brands such as Jurys Inn and Leonardo and its group in MEININGER. Scandic is still our largest business partner, but the share of total rooms has come down from 47% to 34%. So that is how it looks today. Next page, please. Overall demand in Pandox market remained good in the fourth quarter. Demand in Europe is strong, supported by strong economic conditions and strong international arrivals. Finland, Norway, and Germany shows the strongest performance in the lease portfolio. Then we have a few slides where the next one is about Stockholm, that you can see Stockholm coming from a few very strong years and now have a negative pattern due to too much new hotel rooms into the city. We believe that will continue a few quarters more.
I think also it's important to say that Pandox has not been involved in any of this investment in Stockholm at all. So we have a very solid position in the city. All in all, it's 1,000 rooms we have in the city. So in absolute city center and all 9% of the total portfolio in the greater Stockholm, but those who expecting to have the worst is negative effect in the city center. So that a quite small proportion of Pandox. However, Stockholm will continue to shows a negative development at the beginning of 2018 as well. Helsinki has the opposite pattern, coming from poor market into a much stronger, supporting by strong Finland's economy and also more international arrivals, specifically from Asia. It has a good prospectus for 2018.
If you continue with Copenhagen, the same as Stockholm, they have a very strong crown, and they meet, and together with new capacity, that is market, who will also shows a negative effect in the market. Here is about 6%-7% of Pandox total revenue is coming from Copenhagen, so also quite small proportion. Oslo is strong due to a good market, but also a couple two big hotels is out of renovation, so that is also something. Those hotels will coming back at the end of 2018. Brussels is back on track. As you can see, very strong in 2017, and we see also a good 2018 in front of us. Frankfurt, strong due to good exhibition calendar. That will take me to the end of my presentation, and I'll leave over to Liia.
Thank you, Anders. The fourth quarter and the full year developed well. Both property management and operator activities saw good growth and improved profitability. Some key numbers for the quarter and the full year, starting with property management. For the quarter, the rental income amounted to SEK 571 million, which is an increase of 25%, and the full year rental income amounted to SEK 2.2 billion, an increase of 23%. For the quarter, the net operating income amounted to SEK 490 million, an increase of 33%, and for the full year, it amounted to close to SEK 1.9 billion, an increase of 26%. For operating activities, net operating income in the fourth quarter amounted to SEK 140 million, an increase of 11%, which is strong considering previous reclassifications. Full year net operating income amounted to SEK 494 million, which is an increase of 13%.
In the fourth quarter, like-for-like, property management has reported an increase in rental income and net operating income by 3% and 6% respectively. In the fourth quarter, like-for-like, operating activities report an increase in revenues and net operating income of 9% and 25% respectively. For the quarter, the financial net amounted to a negative SEK 126 million. This includes a revenue of SEK 13 million from sales of shares in Norway. The underlying increase in financial expenses reflects the larger loan portfolio and also fees tied to unused credit facilities. For the quarter, total cash earnings amounted to SEK 482 million, an increase of 54%. This includes a repayment of tax in Germany of SEK 18 million, and the revenue of the sale of the shares in Norway of SEK 13 million.
Measured from year-end 2015, the unrealized and realized value increase for Investment Properties amounted to 5.5%, and for Operating Properties, the unrealized and realized value increase amounted to 2.4%, including the revaluation related to the sale of the retail property in Brussels that Anders talked about, the travel retail. End of year, EPRA NAV share was SEK 144.5. Adjusted for dividends and proceeds from the rights share issue, the annualized increase was 18%. Turning to the next page, please. In the quarter, property management benefited from a high-performing acquisition and good underlying demand. There was a positive mix from reclassifications as well as previous acquisitions. Individual cities with particular strong development were Helsinki, Oslo, Düsseldorf, Frankfurt, and Hannover. For the quarter, Germany accounted for 21% of total rental income. In Stockholm as a whole, rental growth was flat in the quarter.
A slight increase in Stockholm North and South compensated for a slight decrease in Stockholm City. Also, please note that 20 hotel properties in the U.K. and Ireland, as Anders mentioned before, were consolidated for 20th of December. A small effect there in the numbers. Next page, please. In the quarter, profitability and operating activities continued to improve, primarily driven by the ongoing recovery in Brussels. Earnings were also supported by a stable positive development in Canada and Germany. Here please note that one hotel property in Brussels with 100 rooms were reclassified to operating activities as of 1st of December. The hotel has since then been closed and will open after renovation during the first half of 2018. Next page, please.
For the period, total unrealized and realized changes in value amounted to approximately SEK 1.9 billion, of which approximately SEK 1.7 billion for Investment Properties and SEK 197 million for Operating Properties. For the quarter, the value increase is explained in equal parts by lower yields and higher cash flow from previous acquisitions, investments, and the market. Year to date, a total of eight hotels have been reclassified from Operating Properties to Investment Properties, and one, as mentioned, has been reclassified from investment to Operating Properties, thereby explaining the SEK 1.6 billion of assets being reclassified.
A total of 21 hotels have been acquired and consolidated to Investment Properties, and two hotels to Operator Activities respectively. End of period, the average valuation yield for Investment Properties was 5.6%, and for Operating Properties it was 7.3%. Next page, please. On this page, we illustrate Pandox's track record in creating value and our financial flexibility.
2017 in general, and the fourth quarter in particular, were very active. Firstly, Pandox completed an acquisition of 21 hotel properties in the U.K. and Ireland for GBP 800 million . Secondly, Pandox completed a direct share issue of 10 billion B shares, raising approximately SEK 1.5 billion before transaction costs. Thirdly, Pandox divested a travel retail property in Brussels for approximately EUR 34 million . End of year, EPRA NAV per share amounted to SEK 144.5 , which corresponds an increase of 18% on an annualized basis if we adjust for dividend and proceeds from the directed share issue. Loan-to-value net amounted to 50.8%. Liquid funds and long-term unutilized credit facilities amounted to approximately SEK 3.3 billion . To summarize, Pandox's financial position remains very robust. Next page, please. Pandox's board of directors is proposing a dividend of SEK 4.4 per share for 2017.
This represents a payout of SEK 737 million, corresponding to 44% of cash earnings in 2017. This is at the lower end of Pandox's financial target range and should be viewed in light of continued attractive acquisition opportunities. Next page, please. With that, I hand over to Anders for some final words.
Thank you, Liia. Final word should be that demand for hotel rooms in Europe in general was stronger than expected in 2017. We enter in this year on a high level with an overall good market condition. That's good. The underlying trend is stable, but we expect a more uneven market due to capacity increase in some of our key markets like Stockholm, Düsseldorf, and Copenhagen. The guidelines and outlook for this year is with this completed acquisition of Jurys Inn, some organic growth driven by market and profitable investment in the existing portfolio. We believe increase a good prospect for increased cash earnings for 2018. Please note that we have Easter on Q1 this year, which has a negative impact on the first quarter, and maybe a slightly negative impact on the first quarter, meaning that Q2 will be slightly better. That was the end.
Thank you very much. Operator, we are now ready for questions.
Thank you. If you wish to ask a question, please press star and one on your telephone and wait for your name to be announced. If you wish to cancel that request, please press the hash key. So star and one on your telephone to ask a question. Your first question comes from the line of Fredric Cyon of Carnegie. Please ask your question.
Good morning, Anders and Liia. A couple of questions from my side. Starting off with the supply side, you mentioned the Stockholm, Copenhagen, and Düsseldorf being markets where you see increased capacity. Any other markets where you are slightly worried about the new capacity?
Well, not worried. I believe that London has a lot of new capacity as well. We have no hotel in the city center. There are also coming some hotels out at the Heathrow market. So that maybe could have some sort of effect. Most of them will come the end of this year, so nothing dramatically. The big increase in new numbers of rooms is in Stockholm, and that are already coming in. So we see one big hotel out at Arlanda, and one or two small in the city center, then it is over. So I think it will be adjusted over the year, but the start of 2018 will be a bit tough because of too many new hotel rooms.
Okay, then moving on to the payout ratio. You mentioned that it was in the lower end of the range, and that you saw acquisition opportunities. Just a clarification on that. This is just a forward-looking statement and does not take into account the recent deals you made in the U.K. and Ireland.
Sorry, can you say the end again?
Yeah, sure. So what I wanted to discuss was whether the lower payout ratio is also, you have taken into account the higher LTV that you had at year-end compared to one year ago.
Yeah, maybe. It is a part of everything, of course. The loan-to-value is just over 50% at the moment, so has come down. We like to have the loan-to-value under 50%, but it is very close to it. That is one thing. But the most important driver is that we see opportunity for acquire hotels. As you know, we have done acquisition for SEK 17 billion over the last three years. That is still a good market for it. Of course, we believe that, as I have said before this morning, I think we do better for our shareholders to acquire hotels of the yield we have done so far, except of having increased the dividend. That is a comment we have regarding the dividend.
Regarding acquisitions, any particular region that you want to expand in or see opportunities of sellers being interesting in divesting assets?
Yesterday I said, of course, we have full focus now to implement the Jurys Inn. That is a large acquisition, and we have respect for that. Together with acquisitions, we also have done the recent year. We are full focus of internal processes to make sure that we understand what we have acquired and see the potential and lower risk everywhere. That is something we will have focus on at least the first two quarters in 2018. That takes some time when we enter into such a big market in the U.K. and such a big deal. That is number one focus. With that said, I think we can now buy across Europe a little bit everywhere because we are in most of the market. I think we don't see any specific market who is more interested than another.
We see a more attractive yield out of Scandinavia, if that be some sort of guideline.
That is very clear. Then finally on investments, you made approximately SEK 700 million in investments in the portfolio during 2017. Obviously, now the portfolio is larger. Should we expect investments to increase as much as the portfolio size?
No. I would say the SEK 740 million was a little bit more than it was normal. I would say we will be in those levels also for the coming years.
Thank you.
Thank you.
Thank you. Our next question comes from the line of Christopher Fremantle. Please ask your question.
Yeah, good morning. Two questions. First is, can you just clarify a little bit, the acquisition opportunities that you are talking about? Are they in markets where you are not currently present? Are you planning expansion into other geographies and cities? If you could just be a little bit more specific there, please. Secondly, on the cost side, given that your increased size, to what extent are you expecting an uplift in your central administrative costs, in 2018?
If we divide them into parts, Christopher, we don't look active at the moment in any specific acquisition. That has been said. We more have a general understanding and intelligence about acquisition we have looked at and contact we have in the market knowing that things are out or will come out. We see opportunity to grow. That is nothing specifically. We will come back in, as I said again, on tomorrow or next week of saying that we continue to buy. Again, the focus is on make sure that we implement those acquisitions we have done and specifically the Jurys Inn. That is a very important message for me to say. Everybody understand that we are now working more with focus on maintain what we have acquired than to acquire new.
With that said, of course, in a couple of quarter, when we are ready, we will look ahead and then what sort of geographic market are we most interested. I believe that first of all, in countries that we already are into, it's of course more attractive. It's easier. We already have the network, we have the intelligence, we have people who work there. I believe that is. With that said, of course, Southern Europe is of course interesting. Maybe Spain has proved to be too expensive, but it's a very strong market in Spain at the moment. If that is possible, we have been looking that in the past and never been successful. But maybe that will come. Hopefully, we can buy something more in U.K. 21 hotels is a big acquisition, but still very small proportion of the total market.
You can see we will not expand out of Europe. That is the main focus. We will hopefully, if we have the chance of buying something, that will be a market that we already are into. If that not happen, it will be a new geographic market, most likely in Southern Europe.
Okay. Would you consider entering less into a sort of city-focused business and tourist hotel into more of a sort of holiday type hotels?
Yeah, that is a very interesting question because if you look now and the last two years or three years maybe, the resort hotel has been extremely attractive. You are buying on a more higher yield, and the market growth is stronger. On the other hand, it is already fully booked in Spain at the moment. So what you should buy at the moment is just Turkey. Turkey is not including in our market, thank God. But if you look that, you can see that that is the market growing very quick. So resort hotel is more interesting to look now than for a few years ago. But I would say most likely, we will have focus on more business hotel that we have focus on today. It is different sort of hotels, different assets, different sort of operator, and different market segment, which is a bit new for us.
If that will come, then it has to be a very attractive deal.
Thank you.
Thank you.
About the administration, you want to say something?
Well, there won't be any major increases. We're not planning for any major changes. Of course, as a growing company, there is always structural work and processes put in place, and there's one more person being added, et cetera. The expansion in U.K. and Ireland, for this sake, a year ago, we already implemented the international What was that position again?
The area manager.
The area manager—
Yeah.
—who will also take care of the new acquisition in Leuven. There will be some increases, but they are more marginal than any big step-ups.
We use our big network and our very well-developed network when we grow in a business size like this. There will not be any major changes.
Thanks.
Hello?
Your next question comes from the line of Albin Sandberg of Handelsbanken. Please ask your question.
Yeah. Hi there. Three questions from my side. I start off with the tax. Even adjusting for that positive one-off, it seems like the quarterly tax rate on an actual pay tax at least was on the low side, which is not necessarily negative. But I just thought you had some guiding for tax rate maybe to come up a little bit on the back of your portfolio being more international. So just wondering if there is anything specifics in Q4, and if you could give any indication for 2018 in terms of tax rate.
Absolutely. Well, as I said, we are not too unhappy that we have sort of with the tax rate. We have some one-offs. There is still, as you know, the tax deficits, the tax
Taxation gap.
They are in the Nordic countries, and as we are expanding, especially in Germany and in U.K., the tax rate going forward will increase. We do expect it to be maybe south of double digits, but still, if it is around 7%-8% now in total underlying, we still believe that it will continue to increase as a percentage as the U.K. and Germany and Belgium part is increasing profitability and a part of the portfolio.
Okay, thanks.
That guidance is still valid.
Yeah. All right. One aspect of just the dividend payout. Assuming that you are not finding any acquisitions and we roll forward one year, market situation similar, would it then be possible for you to raise the payout ratio? I guess the reason why I am asking is just that I totally understand what you are saying, but I guess it could be seen a bit on the defensive side as well to kind of hold the dividend back. You are obviously below the target now, so there is nothing else that is holding you back from this dividend apart from these potential acquisitions, I guess is the real underlying question.
I think we are saying that we are within our payout ratio. We are between the 40% and 60%, as we have stated. There is a 2.8% dividend yield in 2017. It is a real increase. That together with looking at the loan-to-value with the future acquisitions, we believe, or the board believes this is a sort of a robust dividend. What will happen in one or two years' time, it is of course a decision for the board, but we do believe it is a sensible increase in actual terms. Please remember that the SEK 4.40 is based on the new amount of shares with 167 million, which was after the direct share issue.
Okay, thanks. My final question is on the kind of the RevPAR outlook for the group as a whole, and maybe tying that back to the hotel day that you had here during the fall. I guess I came away with the impression that you were talking about some maybe low single-digit growth. I guess maybe that was for the market as a whole. If that is correct, then maybe if you look at your own portfolio, is that a reasonable assessment still that you are still looking for growth on a RevPAR basis if you look at across your specific portfolio?
Yeah, that is correct.
If you break that down, Anders, is it a combination of the occupancy and pricing, or is it anything specific that you think stand out in that outlook?
If you see in Nordic, it is more price. In Europe, it is more volume, specifically in the U.K. So that is a combination, I think. That is the beauty by having a big geographic base. I would say in the end goal, as we said before here, we enter into 2018 in a bit higher level than maybe we expected when we had the market day, and that created good conditions for continued growth in the market. The only negative thing is that a few of those markets have too much new capacity. With that said, the trend is clear, is the acceleration that we have said for a few years. In absolute terms, the market is very good.
The operator are profitable, we are profitable, and that creates a good condition also for driving investment in our existing portfolio, which is, of course, a strong driver also for growth in Pandox.
Okay. Thank you very much.
We take market shares. Yeah.
Yeah. Thank you.
Thank you. Your last question comes from the line of Niclas Höglund of Nordea. Please ask your question.
Yes, good morning. Two questions from me, if I may. Firstly, could you share some more thoughts and maybe share targets on the implementation of Jurys Inn? You are talking about an attractive yield of 5.8%, you are talking about investments that have yet not given the full result. Could you share some thoughts on implementation and timing and the sort of potential on the yield side? Thank you.
Yeah. For Jurys Inn, what we are doing now on Jurys Inn is to make sure that each hotel should have this investment plan which was mostly decided already before we acquire, and that will maybe be maintenance. So we really can achieve this higher level in the market. That is something that will be going on the full 2018 with investment in most of these hotels. So I think you will see a positive trend at the end of the year, and that we will start to take market shares in quite good markets. I think in 2019, you will see the full effect.
What is the full effect?
Yeah, the full effect is we haven't guide to say more than this 5.8%, but of course, that will be above 5.8% in a year from now. I think that is what we can share at the moment. Let's come back to Jurys Inn in the next few quarters when we are even deeper into the business there.
Okay, thank you. Just a final question on refinancing opportunities or risks as you see it. Your LTV are continuing on a pretty high level, although down due to the devaluations, of course. But your financing costs remain on a slightly higher level than we see among other companies in the sector. Do you see opportunities for spreads coming down? Do you expect to increase your duration in the portfolio and keep the current still low financial cost?
Yeah. It's a mix of a lot of things that are also working in different directions. The interest rates and the margins outside the Nordics are somewhat higher than in the Nordics, which means that there is an higher interest rate or interest, total interest, or all-in cost when we acquire outside the Nordics. But on the other side, the yields are much higher there as well. We have maturing, sort of the swaps which we have entered into previously, which are maturing. But at the same time, we are keeping to our finance policy and having a sort of a sustainable and solid and robust interest hedging in place. So of course, depending on the ratio, how long we go, then there is some sort of some there.
All in all, possibilities of course, when the existing swaps are maturing, but at the same time as we're expanding outside the Nordics and also depending on where the interest rates are going forward. It's pretty stable, I think.
Okay. Just to follow up then, you have a 3.4% swap maturing within a year, although it's not a major volume. Would you then still expect this sort of average funding cost to stay at this level? I think it'd be difficult to see you paying a 3.4% if you're not going really long. Isn't there some opportunities here for lower costs into 2018?
Well, of course. Yes, absolutely. If we didn't enter in, of course, the swaps are entering. I don't have the exact which contract or the amount which are 3.4%. Well, it's SEK 697 million. Of course, our total loan portfolio is close to SEK 27 billion, so it's a small part of this. Of course, when you release the SEK 700 million of swaps at 3.4%, that part will come down. So yes, of course, there is an effect of that. But also when we entered into new financing with the Jurys Inn and with that, then that comes to a slightly higher cost than when entering into the same financing in Sweden.
Thank you very much. Thank you.
Any more questions? Hello? Is there any more questions?
Yes, can you hear me?
Yeah, we can hear you now. Yeah, please. Yeah.
Sorry. I just wanted to ask one more question on Sweden.
Yes.
Obviously, your tenant, Scandic, released a relatively disappointing result a few weeks ago, citing some weakness in Sweden. Can you just let us know what your like-for-like revenue growth was in the Swedish business, please?
2017?
Yes, and Q4 if you have it.
In Stockholm, it was zero in quarter four for us. In regional city, it was 2%-3%. Many markets. Most of the market in Sweden was very strong. Malmo was a little bit weaker, but most of the regional city was positive or very good. Gothenburg, very good. Stockholm was, in general, good, but not city center. Of course, there is some sort of de-acceleration in Stockholm as well. In general, that's reflecting in our report. Those who have many hotel rooms in the city center of Stockholm, they will have a stronger press on the rental. We only have 1,000 rooms in the city center, so there will not be any big disappointment from Pandox side because of these new hotels.
On the other hand, it's coming one more out at the airport that can have some effect at the end of this year. In the end, Stockholm is not a big problem for us.
Great. Just to be very clear, your Q4 Sweden like-for-like figure was low single-digit growth.
Yeah. This is still a good market, specifically out of Stockholm City, Sweden is strong. The only reason why Stockholm is not strong is because of too much new capacity over a short period.
Yeah. Just so we can compare the fourth quarter to the full year, what was the full-year figure for Sweden overall, if you have that number?
Yeah, that number is similar to what the Q4 is. Say at three, in interval from 2%-4%, and the same in Q4. In Stockholm, it was a good start of 2017, but as I said before, it was negative at the end. Not for us, but in general for the market.
Okay. That's very helpful. Thank you.
Thank you.
Thank you. There are no further questions on the line, sir. Please continue.
Then thank you for your interest. Please note that we have an annual general meeting on the 9th of April, will be held in Hilton Stockholm Slussen. The notice will be sent out due to course. If you have more information, you can visit our webpage for Pandox. Thank you very much for your interest, and have a good day.
Thank you. That does conclude our conference for today. Thank you all for participating. You may all disconnect.