ANNOUNCEMENTS

NPRO - RevPAR in May for Norgani

Norgani's Swedish hotels saw a continued positive development in May. RevPAR year to date for the Swedish hotels is now positive.. In Norway and Finland the development is somewhat weaker, partly du to reduced travelling activity as a consequence of the volcanic eruption on Iceland.

RevPAR (Revenue Per Available Room) as reported from the operators of Norgani's hotels in May were (performance in 2010 compared to same period in 2009):

RevPAR, change from 2009 to 2010  

 

May
This period
Year to date (per May)
Last period
Year to date
(per April)
 

Norgani revenue split 2009
Norway -3.2% -6.9% -7.9% 23%
Sweden +2.1% +0.1% -0.6% 45%
Finland -11.4% -3.0% -0.4% 27%

 

Norgani's revenues are generated as a percentage of the hotel operators' revenues (room revenue and other revenues). Improving RevPAR will consequently be positive for Norgani's revenues going forward. Norgani has 3 hotels in Denmark which currently only generate minimum rents or pay fixed rents.

CEO Anders Vatne in Norgani comments:

- Sweden comprises approximately 45% of Norgani's revenues, and we are glad to see that RevPAR year to date is in positive territory.
- In light of the volcanic eruption on Iceland that negatively impacted the travelling activity in the beginning of May, it is not surprising that the development is somewhat weaker than in April, which was a very strong month.
- The development is still volatile, and we expect to see single months with large changes compared to the same period last year.

 

Norgani intends to publish RevPAR figures for June in early August. General market data for May has already been or will be published in juli by the statistical authorities in the respective Nordic countries.

 

For further information, please contact:

 

Anders Vatne, CEO Norgani
Tel.       +47 92 69 77 00

 

Svein Hov Skjelle, CFO Norwegian Property
Tel.       +47 93 05 55 66

 
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)