Good morning, good afternoon, and good evening, and welcome to the Pandox Q1 2023 Earnings Call. All participants will be in a listen-only mode. Should you need any assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there'll be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I'd now like to hand the conference over to Mr. Anders Berg, Head of IR. Please go ahead.
Thank you. Welcome everyone to this presentation of Pandox Interim Report for the Q1 2023. As I was introduced, I'm Anders Berg, Head of IR at Pandox, and I'm here together with Liia Nõu, our CEO, and Anneli Lindblom, our CFO. On the line, we also have Robin Rossmann, a Managing Director at STR, who will guide us through the hotel market after we have finished our formal presentation. Robin represents a leading independent research firm focused on the hotel market, and he will share STR's view on this market. Please note that the views expressed by STR are completely separate from Pandox, and that the presentation is offered only as a service to Pandox stakeholders.
Before we let Robin in, Anneli and Liia will present a business update with financial highlights for the Q1 , followed by a Q&A session. After that, Robin will provide his external hotel market update. Next page, please. With that, I hand over to Liia Nõu, the CEO of Pandox.
Thank you, Anders. Good morning and welcome everyone. The Q1 was stable, positive, and in line with our expectations. The hotel market was strong and resilient considering that the economic headwinds we faced going into the quarter. Our earnings development was also positive with solid growth in both business segments and continued earnings recovery. Seasonality is back. Q1 is historically the weakest quarter of the year with lower demand for meetings, which has an effect on larger meeting hotels, particularly in more international destinations, such as, for example, Brussels. Also international travel and larger meetings are still trailing 2019 levels. We ended the Q1 on solid financial ground with an LTV of 46.2%. It's worth repeating that we have all our financing through relationship banks and that we have good and constructive dialogues on all future refinancing.
This is also underlined by the refinancing done of approximately SEK 5.2 billion in the Q1 . Anneli will talk more about this later in the presentation. We move to next page, please. We have a well-diversified hotel property portfolio with 158 properties with almost 36,000 rooms in 15 countries and 90 cities, with a property market value of close to SEK 70 billion. Pandox is divided into two business segments, property management and operating activities. The property management, we own the hotels and will lease them out to strong and well-known operators under long revenue-based agreements. This is about 83% of our property market value. In operating activities, we own the hotels and also operate it ourselves under different operating models. This segment makes up for some 17% of our property market value.
The focus of our portfolio is upper mid-market hotels with mostly domestic and regional demand, which is the backbone of the hotel market. It's also strength in more uncertain economic times. Next page, please. We have one of the strongest networks of brands and partners in the hotel property industry. This ensures efficient operations and revenue management, which maximize our cash flow and property values. As you can see in this picture, we work together with several well-known operators like Scandic and Nordic Choice in the Nordics, and Leonardo in the U.K. and Germany. We also have long relationship with strong international brands such as Holiday Inn, Hilton, Radisson Group, et cetera. In our operating activities segment, we also have some independent brands created by Pandox. For example, our newly renovated hotel, Hotel Berlin, which is our largest hotel with over 700 rooms. Next page, please.
After a somewhat hesitant start, hotel demand strengthened as the Q1 progressed. My view is that the hotel market is robust and in a good state for the coming quarters. Our growth was strong in the Q1 , although the comparable quarter last year, 2022, was negatively affected by pandemic restrictions. For comparable units, total net sales and net operating income increased by 47% and 45% respectively. Like for like, property management increased net operating income by 21%. As I said, our relationship with our banks are strong, and we had almost SEK 4.5 billion in cash and unutilized credit facilities at the end of the quarter. Our loan to value fell to 46.2%, which is in the low end of our financial target.
If we adjust for the dividend which we paid out in April, the LTV was 46.8%. Return on equity measured by annualized growth in EPRA NAV was approximately 15%. Next page, please. Here we see a comparison of the RevPAR level for our business segment Property Management from 2019 until today. The numbers are on a comparable basis. As you can see, RevPAR in 2023 is largely at the same level as the corresponding period 2019, which was a record year. Next page, please. Here we have a breakdown of the performance for a selection of countries, regions, and cities versus 2019. We show ADR on the vertical axis and occupancy on the horizontal axis. Thus, origo is a point corresponding to 2019 on both ADR and occupancy.
In the boxes, we indicate how much higher or lower RevPAR is compared with the corresponding period in 2019. Take for example Edinburgh on the top right-hand side. Occupancy versus 2019 is around 1%-2% ahead, and ADR is 25% up on 2019, meaning a total RevPAR of 27% above 2019. The matrix shows that basically all markets are trading above 2019 levels on rate, whereas the majority of markets is trading below 2019 levels on occupancy due to that we still are lacking international traffic, Asian traffic hasn't still started, larger meeting takes some time, et cetera. Hanover here is the only outlier, which is very much dependent on fairs and exhibitions, and this is something which is taking off in Q2 this year.
Q1 was a slower quarter when it comes to fairs and exhibitions in Germany. In terms of RevPAR, U.K. is above and Germany below 2019 levels on aggregate. In terms of RevPAR in the Nordics, regional markets are well above 2019. However, among the Nordic capital cities, only Oslo has some so far climbed past 2019 levels. Next page, please. During the Q1 , we acquired The Queens Hotel in Leeds, which is operating activities segment. This is an amazing hotel with 232 rooms in the best location in Leeds. We also acquired the Best Western Hotel Fridhemsplan in Stockholm, Sweden with 221 rooms. I'm super happy to be able to acquire a hotel in Stockholm with such great potential.
We have a long and successful history of acquiring underperforming hotel properties and increasing their profitability and value. Both of these acquisitions done were done at very attractive prices and yield levels. Very excited about both of these. Next page, please. With that, I hand over to Anneli, our CFO.
Thank you, Liia. Good morning, everyone. We are happy to report continued earnings recovery and strong like-for-like growth in this Q1 . Yes, we do have easy comps this quarter, but still, we are proud of continued earnings recovery in a traditionally weak quarter. Totally revenue based rents increased to SEK 208 million compared with SEK 98 million last year. Revenue based rents was generated in 55 out of 96 agreements, which is in line with normal seasonality. We therefore fly in the Q2 on a good level. Operator activities delivered in line with our expectations. As you know, we do have mostly large meeting hotels in international destinations in this business segment. In the Q1 it is a bit slower in that respect.
This will improve in the Q2 and even more so in the second half of the year. Next page, please. We perform internal valuations of our hotel properties each quarter. 94% of the properties have been externally valued during the past 12 months. The valuation are in line with our own internal valuations. Unrealized changes in value were a negative SEK 420 million the period, mainly increased by an increase in yield. Of this, SEK 410 million was for investment properties following an increase in yields with 0.04 percentage points. The remaining SEK 10 million was for operating properties where an increase in yields of 0.09 percentage points was almost fully balanced by higher cash flow. In the Q1 , we also had a positive realized change in value of SEK 198 million.
Firstly, a capital gain from the divestment on our hotel in Canada, Montreal, and secondly, a positive net from disposal a hotel in Germany which suffered flooding damage in 2021 and has been closed since then. As always, please remember that investment properties are recognized at fair value. According to IFRS, unrealized changes in value for operating properties are only reported for information purpose, but is included in the EPRA NAV. End of period, the average valuation yield for investment properties was at 5.62%, and for operating properties it was 6.59%. Next page, please. Yes, as you know, Pandox has two sources of financing, equity and bank loans secured by underlying properties. We have no market financing in the form of bonds and no external rating requirements. Given our business model, we focus on hotels and variable rent.
This has proven to be the most efficient and predictable financing over time. On the right, we highlight our capital structure at the end of the period. Based on the closing price of yesterday, Pandox is valued at a discount to EPRA NAV on approximately 35%. Next page, please. The slide with some balance sheets, KPIs per March 31. Loan to value as well as EPRA LTV amounted to 46.2%. Adjusted for dividend pay in April, the loan to value was 46.8%. Cash and unutilized credit facilities amounted to SEK 3.8 billion. Credit facility maturing in less than one year amounted to SEK 11 billion, of which SEK 3.5 billion will mature in the Q2 . We have SEK 6.7 billion that will mature in the Q4 .
We do have well-advanced and positive dialogues ongoing with banks regarding all of these credits. Interest costs will, of course, continue to increase a bit as upcoming maturities are refined and based on the current conditions on the market. Next page, please. With that, I'll hand back to Liia.
Thank you, Anneli. Pandox is a company driven to succeed, we are financially strong. A business model with variable revenues offer protection against both inflation and higher interest rates. We continue to see recovery potential in business and international travel, we also see a stronger trade fair and exhibition calendars than in 2022 in all of our important markets. All in all, we remain cautiously optimistic on 2023. Next page, please. We now move over to Q&A. Operator, we are now ready for questions. Please don't forget to hand the call back to us afterwards for Robin's presentation.
Thank you. We'll now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Your first question comes from Albin Sandberg from Kepler. Please go ahead. Yes. No.
Yes. Hi there. Good morning. A few questions from me. The comment you're making about seeing sort of a pick-up of demand, as I understand it, throughout Q1, is that in line with your initial expectations on how the year was going to start? Also if you could comment maybe a little bit on what you're seeing in terms of start of Q2. I guess also just trying to factor in what we're seeing of the overall macroeconomic development.
Right. Hi, Albin. Great to have you on the call. Busy, busy day, I think, with our report. Yes. As the Q1 is very much in line, or actually above what our internal expectation, the budgets for the Q1, because it is a slower quarter when it comes to the fair trade and exhibitions. We see that, as we say in the report, picking up for Q2 and forward. The book looks good on this. We are ramping up. The big meetings, the conferences, the exhibitions, the trades, et cetera, et cetera, of course, they are not booked for Q1. They're coming in. And we see this ramp up we have been expecting. Very much in line.
There's always a fear of how will private residential travel. We haven't seen any slack on that. People seem to prioritize travel. Also when and if there would be any slowdown there, we do see that the business segment is coming up compensating for that in full. In line with our own expectations or even above.
On the business segment that you mentioned there, no signs of potential, let's say, cancellations of planned meetings, and so forth on the back of maybe a weakening output? No.
No, not at all. Of course, we are humble and cautious, but as we have said all the time, people wanna meet, people need to meet. There has been a hesitation last year of booking major events, or trades, but these are booked for the rest of the year. So, no.
Then I saw in your balance sheet that you have not separately highlighted the rent receivables any longer. Is that because you're now back on a normalized level so it's not worthwhile highlighting them specifically? Also what was the lessons learned from this whole COVID? Did you actually end up receiving everything that you expected?
I mean, you're completely right. We don't highlight them like them anymore because we sort of just back to normal. I mean, we have no issues with non-payment from that period, we are sort of back on track and we did get paid all the expected amounts. That's why we don't highlight it anymore because I mean, we're sort of back to normal.
Okay, great. Then my final question is around the financing and the refinancing unless you point out. I mean, you're doing a quite substantial amount in Q1, but there is still quite a lot falling due within a year or so. Do you expect to refinance now on a quarterly basis or will we see like 1 big news coming out from Pandox saying, "Okay, now we're done with all the refinancing for this year." Also if you could make a comment on how you see margin progression maybe over the last six or nine months in your negotiation with the banks.
Okay. I mean, we are continuously working with our banks, so this is sort of normal for us to do the refinancing. We have a bunch now coming in the next quarter and then in the Q4 . This is ongoing discussions, so I mean, I do expect us to have no problems with doing the financing. To add to Anneli's point, I mean, these are very much dependent on it's portfolio financing. It may be three properties or maybe 10 properties, and it's not dependent on sort of a quarterly calendar. It's more depending on when we acquired it, was it a three or five-year term loan we put in place coming up for refinancing.
You see these sort of maturities in our reports. During the COVID, we have sometimes had shorter maturities because it's been more uncertainties around the levels on the margins. These are tightening, of course, and we are rolling them longer. Back to more normal patterns, the same patterns we had before.
I know you don't have like a stated financial target on credit maturity, but I see your, you know, your most recent report it is 2.1 years. Do you expect that to be prolonged or is this the level where Pandox would be in a steady state scenario?
No. I would guess that's sort of the level that we will have now because, I mean, we. I mean, as for now, no one actually knows where the credits are heading. My opinion, it's better to don't go that long with. I mean, unless you do, you do get a really good level from the bank. So far we sort of, we will stay on this level.
Okay.
This is where we get the best price from the banks.
Okay. Thank you very much. Those were all my questions.
Thank you.
Thank you. Once again, if you have a question, please press star then one. Your next question comes from Fredrik Stensved from ABG. Please go ahead.
Thank you very much. May I start with a follow-up on the last question? Maybe I wasn't listening carefully enough, but margin development in the last quarter or last six months or so. Okay, can you say anything about that?
Well, like we said, actually during all of the, all the, all the pandemic, the COVID, the margin were. If they were around 150 bips prior to the pandemic, they are now maybe at around 200 bips. Between 200 bips and 230 bips. It hasn't changed so much. It's just that during the pandemic we rolled the maturities shorter. Our sweet spot normally is about three years, four years. Credits tend to be a bit more expensive when banks were, I don't know, it was Basel requirements or whatever it is, but they tend to be more expensive if you go plus five years. There's like a sweet spot there, and we are going from the sort of pandemic shorter with slightly increasing margins.
Some of our maturities are now refinancing. Of course we are coming up on those. Credit margins which are more in line with 200 bips instead of 150 bips. Above that, no major differences other than that the underlying cyber.
What they're called? Not library anymore.
Cyber.
Exactly. Those have been sort of shock high.
Okay, great. Thanks. Secondly, you stated in the presentation and in the report that 55 hotels generated turnover rent now in Q1. That's sort of in line with the historical pattern. Can you state what share of hotels normally or historically or 2019 generated turnover rents in Q2, Q3, Q4?
Yeah. In 2019, which again was a record year, in the Q1 , it was about 70-73 or so hotels. About 18-20 hotels less this quarter than four years ago, coming above the sort of minimum threshold. Remember that during all of these four years, our minimum rents have been indexed with inflation, so of course targets are higher. That you have to take into, because as you have this, have inflation adjustment. Also of course, there are some hotels, especially in Germany, which have the jurisdiction taking some longer time to get out of the sort of starting blocks.
Right. Okay. Sort of if we look at the historical pattern throughout the year, if it was 73 hotels in Q1 in 2019, what was sort of the Q2, Q3, Q4 figures? I'm just sort of looking for the historical pattern in terms of pickup and when you reach that full level.
Well, in 2019, we have 95 hotels that have that are turnover based with a minimum level. I mean, usually in the basically in the Q2, Q3, and Q4 , maybe all of them except for two, three, four were at turnover-based rents. Q1 always being like 20 hotels struggling more because of normal seasonality. There have been typically one, two, three hotels which may be trailing around or just below because of renovation or something else. In normal quarters, there should be a substantial pickup during Q2 . Of course, the calendar effect needs to catch up for the Q1 . In 2018, 2019, maybe 85, 86 hotels of the 95 were at revenue based above that level.
Almost all of them then fully in Q3 and Q4, depending on, if there had been a renovation or something like that.
Great. Perfect. Thank you very much. That's all for me.
Thank you.
Thank you. Your next question comes from Edoardo Gili from Green Street. Please go ahead.
Hello.
Hello.
One question for me on the refinancing. Do you have more color around the SEK 5 billion you've managed until now in terms of locations and types of hotels as well? Just to get a bit more information around what's left for the year, do you have an easier time, you know, going through the refinancing for certain locations versus others?
Again, as I mentioned before, the refinancing has to do with when we acquired the portfolios. In Q1 , the majority part has been refinancing of the previous Jurys Inn portfolio , which we acquired in 2017, which had the financing which was a little bit plus five years, and was maturing now in the Q1 . The Jurys Inn portfolio , which has been rebranded now to Leonardo, with 21-23 hotels in U.K., so very much U.K. here, but also some other refinancing, mainly in Sweden, something in Denmark, I think. For the rest of the year, I mean, it's a diversified portfolio we have, so there will be a mix of refinancing portfolios with both on our own operations but also in the Nordics.
Understood. Yeah.
Basically one of our 13 relationship banks.
Understood. Do you have a split between the operations versus the property managements just for the rest of the year?
In what extent? Sorry.
In terms of refinancing of the hotels.
Well, there's not separate. We don't have separate financing for operations or for property management. Sometimes when we buy a portfolio, it may be a mix of them both. It little bit depends on which relationship banks and what sort of the nature of the portfolio is. Not really.
Understood. Thank you. In the next couple of months, there's gonna be more Nordics, and in the past quarter was more U.K. That's correct?
This quarter was more U.K. Absolutely. Yeah. We also had Germany next.
Yeah.
Yeah.
Perfect.
It is really a mix.
Perfect. Thank you.
Thank you.
Thank you. As there are no any further questions at this time, I'll now like to turn the conference over to Robin Rossmann, MD and STR. Please go ahead.
Well, good morning, everyone. Just checking you can hear me all right? I presume so. If not, jump in.
Yes.
Thank you very much for that. I'm gonna now hand over, or not hand over, I'm gonna take over from the slide entitled European Hotel Performance Update. Just give an overview of where performance has gone in the last quarter and expectations going into the rest of the year. Starting on the slide with the world, and showing occupancy for the Q1 or year-to-date 2023 in the big bubbles, and then the % change versus 2019. What you can see, yes, it is seasoning, especially in the northern hemisphere, a pretty lower performance quarter. When we look compared to 2019, in most places across the world, occupancy is either already recovered or exceeding 2019 levels.
You can see that in Central South America, in the Middle East, Southern Africa, not far off, or not far behind, in North America, 3% behind, Europe, 5% behind. Even China has seen a significant rebound domestically now that things have reopened and is only 3% behind. Only a quarter ago that was at, in a much worse state. The only region still really lagging is some of those important outward bound Chinese markets. International travel from China not yet recovered yet. Asia, excluding Mainland China and still trailing Australia, still trailing. Focusing on Europe, it is not far behind, but it is still not fully recovered to 2019 levels.
When trying to understand why that is, I'm gonna go on to the next slide and just show you the picture across some of the major countries in the region. The dark dotted line shows that 95 index, so just 5% below the 2019 level for the average for the continent. You can see that Ireland, United Kingdom, Portugal, Spain, Italy, all above that 95 level. The countries where that are lagging the recovery and pulling us down from that fully recovered level are France, Netherlands, Belgium and Germany.
I'll just touch on France first, even though it's in the middle, and that is definitely the impact of the unrest and the protests over the last month in particular, which has taken that hotel market from being pretty much fully recovered to, as you can see, trending downwards. That is expected to recover now that those protests are receding. Which then takes us to the Netherlands, Belgium, and Germany in particular. The reasons underlying those countries slower recovery or lagging recovery is a greater reliance on international business travel and meetings, which have not yet come back.
Unlike some of the countries at the top where that has been offset by significant growth in U.S. inbound travel, the destinations at the bottom are not as strong in terms of pulling that U.S. demand to offset other demand which has not come back yet. When we go on to the next slide, you'll see that when we look at the major gateway cities, it broadly mirrors what we've seen at a country level. Edinburgh, Dublin, London, all sort of close to fully recovered in Southern Europe, all between sort of 90% and 100% recovered.
It is that really Amsterdam, Brussels, Berlin, and some of the other countries I'll mention, the broader DACH market, Zurich, Vienna, all still trailing a bit further behind 'cause of those factors that I mentioned. Just going on to the next slide, and looking specifically at Germany because Germany did or was also the last to recover coming out of the pandemic last year. Here you can see 22 index versus 2019 and 2023 index versus 2019. It is it's consistent with last year that Germany has been weaker than the rest. Last year, Germany had some of the strongest COVID controls still in place.
Whilst those COVID controls have gone away, I think the hypothesis is that certainly the German consumer and German business traveler has reacted the most conservatively due to the concerns around the war in Ukraine and restrictions on energy supply. That certainly has played into the slower recovery that we've seen this year. However, what happened last year is even though Germany was behind in the Q1 , it did recover more in line to the rest of European countries as we headed into the second and third. Moving on to the next slide, focusing on rooms rate or ADR. Here you can see a similar graph to before. It's showing absolute rates in U.S. dollars.
It's showing the percentage change in the smaller bubble versus 2019. Slightly different sort of color coding here. Anything that is exceeding, I'll start with the teal in Europe, where rates are on average 21% above 2019 levels, similar to North America and Central America, which is just above the sort of inflationary growth between 2020 and where we are now of just under 20%. Rates either at or ahead of inflation, broader economic inflation. That compares to the Middle East and Southern Africa, where rate growth is up close to 25%-27%, ahead of inflation, and Northern Africa and South America, where rate growth is significantly higher than inflation.
The markets where, because of the slower recovery, rates have not tracked inflation is in China and Asia, excluding mainland China. We do expect that to change as that Chinese outward bound demand comes back and demand fully comes back in domestic China. Just a bit more on Europe. Last year it wasn't necessarily true that the markets that had the highest occupancy recovery had the same rate recovery. That certainly is what we have now stepped into, which is what you would expect. Those markets that have seen the strongest demand recovery ultimately enables hotels to generate pricing power and push rates up.
You can see here that Ireland at the top, but also Portugal, getting rates now that are now over 30%-40% higher than 2019 levels. As we head down to that European average of just about 20%, you can see Spain, U.K. and Italy above that, so all tracking above inflation or ADR growth in real terms. However, it's not true for all countries in Europe. France slightly below, more from a domestic perspective than from Paris, which is well ahead. Then it is Netherlands, Belgium and Germany that are certainly trailing the rest of Europe, and that is underpinned by those demand drivers that I mentioned earlier. So just a bit more on those demand drivers.
When we look into some of the outlook. The one other thing I would mention that has certainly not helped, moving on to the next slide, which is Europe luxury class ADR. Apologies, I may have forgotten to tell you to advance the slides for the last couple. If you are now on a slide that says Europe luxury class ADR tops the charts, it's start with luxury class on the left-hand side. Just on this one, the thing I wanted to explain was one of the other reasons why Germany, Belgium and Amsterdam have underperformed the rest of Europe, particularly on rate growth, is they have less luxury supply in those markets.
When we look at rate growth across the world and in Europe, it is the luxury hotel market that has seen the best rate growth coming out of the pandemic with about 43% ahead of 2019 levels, whereas the rest of the market is somewhere between mid-teens and low twenties. Now in terms of how we expect this to develop, what we've seen in the U.S. and what we expect to see in Europe is that luxury growth, rate growth will moderate and potentially even go down slightly this year. A lot of that was pent up demand, which is now spent up.
What we're seeing in the U.S. is those hotels at the bottom and the middle of the market continue to grow rates, whilst that luxury is coming down. Onto the next slide, which says outlook, and then onto the next slide, which shows GDP over the long term indexed with room demand. This is one of the key points that, you know, historically, in almost every economy in the world, because hotel activity is underpinned by broader economic activity, there is a very strong correlation between the two. However, because of certain barriers to that travel, and Europe in particular, around airlifts, around group demand, still not fully back because of concerns over logistics.
We, we have seen that although economies are either fully recovered to 2019 levels or ahead of 2019 levels, there is still this gap to demand. That is expected to close as some of those factors recede in the coming months. Just to give you an idea on group demand in particular, the U.S., which does tend to be ahead of Europe in these sort of things, has for the past four, five months had group demand that is really single digits behind 2019 levels, whereas Europe is still some 50%, 60% behind 2019 levels.
Moving on to the next slide, and just focusing for a moment on supply growth, because obviously where supply growth exceeds demand growth, that would cause occupancies to go down. What we've seen in the last couple years is that supply growth slowed down slightly in 2020 as a result of disruption. There was a bit of catch-up. Broadly, over the three years, 2020 to 2022 was about 66,000 in growth per annum rooms. Based on known rooms under construction and pipeline and anticipated delays, for the next two to three years, we expect that to remain at a similar level. No significant increases in supply. Just to give some context, there's about 6 million odd rooms in Europe.
67,000 rooms growth represents just over 1% growth in supply per year, which is broadly the same as consensus forecasts of economic growth across Europe for the next couple years, just about that 1% mark. From a high level, macro perspective, supply growth is broadly in line with demand growth, with eco-economic GDP growth being the proxy for that. However, there are still a number of factors that should help close the gap with the fact that demand growth hasn't recovered fully to the same level GDP has. One of them is if you move on to the next slide, the international arrivals. What you can see is that even though there was significant recovery in 2022, it is still below those 2019 levels.
tourism economics, who we work with are forecasting that will recover further in 2023 and even further in 2024. Certainly when you look in the airlines capacity levels, they are all back to pretty much the levels they were in 2019. Just getting on to a bit more granular data that really focuses only on the next 90 days, but it is indicative of what we expect to see this year. On slide 27, the next slide, business on the books, it shows you across the major gateway cities business on the books for the next 90 days. Rooms already sold as at the 17th of April and what that is versus same time last year.
What that's showing is that there's already much more business on the books, particularly in Rome, Lisbon, Amsterdam, Madrid, Brussels, than there was this time last year. That would be indicative of stronger actualized performance in the next 90 days than what we saw in the Q2 of last year. In summary, on the last slide, there are clearly sort of broader economic concerns across the world and then Europe. There are a number of factors that are benefiting the accommodation sector. We still have a relatively weak EUR and GBP, and we are seeing that drive stronger demand from dollarized economy. Not just the U.S., but, and the Middle East, too.
That's benefited some countries and destinations more than others. That should continue for the coming period. There is still recovery to happen in business travel, and that's being facilitated by increased airlifts. What we've seen from a rate perspective is significant growth last year due to pent-up leisure demand in particular over the summer months. There was a concern that that might tail off because business demand would not recover. However, we did see and we have seen in the actualized data that even though there's still that bit to go, that sort of 5% to go, business demand had a significant recovery and sufficient enough to certainly hold on to that rate growth that the market achieved through the summer months.
That the combination of that, the continued demand drivers as above and the limited supply growth should support the sustainability of that going forward. With that, I'd like to hand back.
Thank you, Robin, for this hotel market update. Thank you all for participating in this call. We really appreciate your time and interest in Pandox. Our interim report for the Q2 is published on July fourteenth. Thank you, enjoy spring and stay in our hotels. Thank you and goodbye.
Thank you. That does conclude our conference. Thank you for attending today's presentation. You may now disconnect.