Growing up in the small

Transcription

1 INSPIRING THE BUSINESS WORLD Being a CEO was plan B. A young Anders Nissen dreamed of leading Sweden to victory on the sporting pitch, but today the Pandox CEO wouldn t swap his triumphs in the business world for anything. WORDS CHRISSIE MCCLATCHIE IMAGES PANDOX SMART QUESTIONS +EVERY LEADER NEEDS TO ASK ARE YOU READY FOR THE WORKPLACE OF THE FUTURE? ISSN The New Monacos SAN FRANCISCO MELBOURNE & TEL AVIV The cities attracting the world s wealthiest The Business of FASHION Tommy Hilfiger CEO Daniel Grieder discusses dominating in denim and disrupting the status quo DAN PRICE PUTTING PURPOSE BEFORE PROFIT WILL CHINA CAUSE THE NEXT GFC? In talks with THE WORLD S BEST FEMALE CHEF As featured in The CEO Magazine For more info visit theceomagazine.com theceomagazine.com 61

2 INSPIRE Interview Growing up in the small village of Kristianstad in southern Sweden, Anders Nissen always dreamed of representing his country in handball. That was plan A, but obviously I didn t succeed, he laughs, adding: Being a CEO was plan B. In hindsight, the man who has been Pandox CEO since 1995 appears more than happy with the way life has panned out for him, but concedes that some habits from the sporting arena have still found their way into his corporate environment. I see myself more as a sports coach these days, getting ready for action every morning. I love the sports atmosphere, he says. The boardroom may now be his stadium, but Anders remains every bit Pandox top 10 brands Scandic: 44 hotels Leonardo: 16 hotels Independent Brands: 13 hotels Nordic Choice Hotels: 12 hotels Radisson Blu: 7 hotels Hilton: 5 hotels NH: 5 hotels Holiday Inn: 4 hotels First Hotels: 3 hotels Crowne Plaza: 2 hotels a sportsman who continues to draw much inspiration for his off-field role from on-field experiences. Still a familiar presence on the handball courts and football pitches of Stockholm, where Pandox is headquartered, a sporting attitude is reflected in his leadership style and peppers The CEO Magazine s conversation with him. I like to compete; to hopefully be the best, he answers, when reflecting on what has kept him motivated in the role. He has been CEO since Pandox s inception, 22 years and counting. It s obvious that his athlete-like drive and determination has played a significant role in transforming what started out as a small group of 17 hotels in Sweden into one of Northern Europe s leading hotel owners. Today, Pandox s portfolio comprises 120 hotels with a total of 26,240 rooms in 10 countries. Its current market value of the property portfolio is more than SEK38 billion. Our motto since day one has been to focus on one asset, he explains. The only thing we have ever invested in is hotels. Its strategy is to acquire full-service hotels in regional or international centres, and its business model is to enter longterm revenue-based lease agreements with some of the most recognisable operators Anders has cultivated an original and proprietary approach to hotel investment, fuelling Pandox s successful evolution into a market-leading hospitality company. He loves challenging preconceptions and gets it right, through research and good judgement. Once decided, he acts quickly. Mark Wynne Smith, Global CEO Hotels & Hospitality Group, JLL We share the same ambitions Full page advert JLL jll.com 62 theceomagazine.com

3 Success is possible anywhere. Nordheimer building with conference facilities adjacent to InterContinental Montreal. But only when you have the right partner. KPMG advises and supports you as a globally operating company in all phases of your international investments made in Germany. You can count on our efforts and expertise in Audit, Tax, Consulting and Deal Advisory anytime and anywhere. For more details please visit Anticipate tomorrow. Deliver today. Contact: Oliver Dörfler T odoerfler@kpmg.com Full page advert KPMG 2017 KPMG AG Wirtschaftsprüfungsgesellschaft. All rights reserved. in the world, often sharing the responsibility of developing the property with them. Where a suitable partner cannot be found, Pandox runs the hotel itself. Currently 80 per cent of hotels are leased and 20 per cent are owner-operated. Although Anders believes that Pandox s capacity to do every type of deal in the hotel market is what has driven such impressive growth, underperforming is a characteristic that many of its acquisitions have shared. As you can imagine, it takes a few years to bring these hotels back to a certain standard before we can lease them out; we may have to change the brand or the management, he explains. He does emphasise, however, that there is one category the company has no interest in. We will never invest in small hotels, he says. They have no critical mass. Sweden, followed by its Scandinavian neighbours and Germany, are Pandox s largest markets, according to Anders, although its presence extends as far as Canada where it operates two of Pandox is an entrepreneurial company having an easy-toreach, straight-to-the-point attitude. As adviser, you are part of it and right in the middle where things happen. They look for pragmatic solutions right on the spot and that makes it extremely interesting. It was a pleasure working with the whole Pandox team. Oliver Dörfler, Partner, International Tax, KPMG Park Hotel Amsterdam. Montreal s landmark hotels: the Hyatt Regency Montreal and the InterContinental Montreal. Anders is brimming with enthusiasm for our beautiful, dynamic market called hospitality, which is growing year on year, he says, and is excited about the market outlook as he and his team look to expand their global presence. There are a number of positive factors influencing the industry, he explains. We re witnessing an increased disposable income and a growing middle class who are more eager than previous generations to travel. He sees it as a sector that has earned its place in the sun. theceomagazine.com 65

4 The Hotel Brussels. Photo by Olivier Pirard. From being a small, fragmented industry, it has become very international. Hotels have become crucial to a city s destination planning. Also, as a profession, hospitality is now seen as a respected career path. That was not the case when I first started out, he says. In fact, back in 1995, Anders recalls the challenges the newly established company faced because the hotel property market didn t even exist. The real estate sector hadn t yet been divided into the residential, commercial or industrial categories that we have today, he says. It all came under the same umbrella. Two years after its establishment, Pandox listed on the Nasdaq Stockholm the first hotel company to do so in Europe. We were just coming out of the recession that hit at the start of the 90s. All hotel markets in Europe suffered from a period of negative yield growth, Stockholm in particular, he explains. So trying to convince potential shareholders that they should invest in a sector that, only a few years before, had been one of the worst investments to make was tough. Especially when no-one really understood what the hotel property market was in the first place, he explains. Despite the challenges, the IPO was a success and enabled Pandox to establish a presence outside of Sweden. Seven years later the shares were delisted when the company was acquired in 2004 by industrial investors. The Pandox growth trajectory continued unhindered. In the aftermath of the GFC, Pandox acquired Norgani Hotels and its portfolio of 72 properties for close to SEK10 billion in 2010 the largest hotel transaction in the world that year. Of course, it was a tremendous, fantastic deal, but how many people would be brave enough to do it? he asks, recalling a long, hot summer spent at his holiday house breaking for exercise in between the maze of calculations. Did he ever doubt himself? When you play in the World Cup final, you cannot start to question yourself. You have to believe in your plan, he responds. In 2015, Pandox relisted on the Nasdaq Stockholm; the same year it celebrated its twentieth anniversary. The difference this time was that we were returning as a stronger company and one of the largest players in Europe, he says. We received a great reception and many of our original shareholders reinvested, which was In his CEO comment to open Pandox s 2016 year-end report, Anders said: The hotel market has demonstrated good growth over a long period, and this development is supported by a number of strong trends in the world around us. amazing. He believes its ability to generate a good return in a variety of economic climates is what makes Pandox an attractive choice for investors. For someone who was only 25 when first appointed to the position of hotel general manager, Anders can relate to the bright young talent that Pandox has no problem attracting. You also get the feeling he has the energy to match their enthusiasm. The Pandox team, he says, is small but highly skilled. Why have a playing roster of 30 when you only rely on the talent of the top 10? he asks, drawing upon another sporting analogy. And it is his role to train them and inspire them, to ensure that they can lift themselves up to the next level and are always ahead of their own game plan. Considering the successes he has driven Pandox to, there s no doubting him when he concludes that, as a leader, I am normally nice and friendly, but of course I can be very demanding. Eastdil Secured feels privileged to have transacted on 25 hotels with Pandox in dealings marked by very smooth and swift processes. Pandox is a highly professional company with a strong execution track record, allowing it to be considered for off-market opportunities. Giorgio Manenti, Managing Director, Eastdil 66 theceomagazine.com theceomagazine.com 67

5 NEW YORK LOS ANGELES LONDON FRANKFURT DUBAI* HONG KONG ATLANTA CHICAGO WASHINGTON, D.C. Celebrating 50 Years as The Real Estate Investment Banking Company SAN FRANCISCO BOSTON DPS page advert EASTDIL SECURED DPS page advert EASTDIL SECURED SEATTLE ORANGE COUNTY DALLAS LAS VEGAS SILICON VALLEY A WHOLLY OWNED SUBSIDIARY OF WELLS FARGO & COMPANY Securities products offered through Wells Fargo Securities, LLC member FINRA/SIPC *Location in which Eastdil Secured has an affiliate presence