Company Announcement nr. 50 - 2024
This company announce contains inside information.
24 May 2024 11.25 (CEST)
 

Malmö, Sweden - Movinn has signed a long-term lease to operate the former Duxiana Hotel in Malmö, Sweden. The existing hotel will be handed over and re-open under a new brand in the second half of June 2024. In parallel increments, the Hotel will be transformed into a 21-unit premium boutique aparthotel, branded to match the exclusive profile of the property and quality of the units. The property is handed over to Movinn fully furnished and equipped with top quality DUX beds and classic design furniture like Jetson chairs and similar, meaning the concept will be premium throughout. There will also be a high quality restaurant in the ground floor - operated by a third party professional restaurant-operator - meeting facilities and a roof-terrace in the inner court yard. 

The property will be uniquely branded to honour the history of the property and the current upscale appeal and to give it an international sense of flair. It will be operated under the Movinn group, with both a separate profile and website – and also linked to the movinn.com-platform for direct bookings and a higher level of visibility. The units will be available for short or extended stays, both serving the Company's existing swedish portfolio of corporate clients, but also short stay business and leisure travelers looking for a premium product in central Malmö.

The Property is located in a prime location on the corner of Mäster Johansgatan and Norra Vallgatan in the historic city center of Malmö with walking distance to the large business district of the inner Harbour, the high streets of the Oldtown as well as walking distance to the central train station for easy commute to Copenhagen (Denmark), Copenhagen Airport, Hyllie and Lund. 

When fully operational, the full year revenue effect of the apartment hotel is expected to be 6.5 - 8.5 mSEK. We expect the full year EBITDA effect to be 1.3 - 2.0 mSEK. As there are no significant FF&E investments, the annual write downs in the property will be close to zero, meaning the expected full year EBITDA and EBIT will be more or less identical.  

Patrick Blok, CEO, states: "Happy with this result. It's a beautiful house that has been well taken care of by the former owners. It's a fantastic location that will serve as a flagship product of our activities in Skåne. The quality of the property and interior is extremely high, making it a great plug-and-play opportunity for us to grow substantially and deliver on fundamental metrics without tying up too much capital. The deal is perfectly aligned with our sourcing strategy as well, making the deal a tangible example of our focus and ability to execute. We couldn't do it without our local real estate partners though, so I am very happy with that relationship: None mentioned, none forgotten".