Hello, and welcome to Pandox Q3 Report 2022. Throughout the call, all participants will be on listen-only mode, and afterwards there will be an opportunity to ask questions. If you have any questions, please press zero one on your telephone keypad. Today, I am pleased to present Anders Berg, Head of IR. Please go ahead. Thank you very much, and welcome to this presentation of Pandox Q3 2022. I'm here together with Liia Nõu, our CEO, and Anneli Lindblom, our CFO. Hopefully, in line with our tradition, we will have STR with us also today, represented by Robin Rossmann, Managing Director at that firm. He represents a leading independent research firm focused on the hotel market, and he will share STR's view on the market. As you know, the views expressed by STR are completely separate from Pandox, and the presentation is offered only as a service to Pandox stakeholders. Also please note that Robin's presentation will be held after we have completed our earnings presentation, including the Q&A. The presentation is as usual divided into three parts. First of all, Liia, Anneli, and myself will present a business update with financial highlights for the third quarter, followed by a Q&A session. After that, Robin will come in and provide the external hotel market update. Next, page, please. With that, I hand over to Liia Nõu, CEO of Pandox. Thank you, Anders, and welcome everyone. I'm really happy to report another strong quarter for Pandox, and the second in a row, and our best so far in Pandox's seven-year long history. It's quite remarkable given the pandemic and the uncertainty we have seen over the last two years. The third quarter was the first restriction-free quarter since the fourth quarter 2019, and hotel market demand was strong. The combination of a stronger hotel market and a well-executed business model with variable revenue resulted in a strong earnings improvement for Pandox. Revenue-based rents increased, and our own operations improved considerably, which confirms the power and performance of our business model. We end the quarter with a solid financial position with LTV of 47.1%. It's worth repeating that we have all of our financing through banks, and together with them we have a good and constructive dialogue on future refinancing. Next page, please. Pandox has a well-diversified hotel property portfolio. We have 157 hotel properties with approximately 35,500 rooms in 15 countries and 90 cities, and with a property market value of more than SEK 68.3 billion. We are divided into two business segments, property management and operating activities. In property management, we lease hotels to strong and well-known operators under long revenue-based agreements. This segment makes up for some 81% of our property market value. The other segment, operating activities, we operate the hotels ourselves under different operating models. The operating activities makes up for some 90% of our property market value. The focus of our portfolio is upper-mid-market hotels with mostly domestic demand, which is a strength in more uncertain economic times. Next page, please. Pandox has one of the strongest networks of brands and partners in the hotel property industry. This ensures efficient operations and revenue management, which maximizes the value. As you can see in this picture, we work together with several well-known operators. For example, Scandic and Nordic Choice in the Nordics, Jurys Inn in U.K., and Leonardo Hotels in Germany. We also have long relationships with strong international brands such as Hilton, Holiday Inn, Radisson Hotel Group, et cetera. We are very happy to have added Axiom Hospitality to our network during this quarter. They are managing the operations at our newly acquired DoubleTree by Hilton Bath. In our operating activities segment, we have also some independent brands created by Pandox. For example, our newly renovated Hotel Berlin, which is our largest hotel with over 700 rooms. Next page, please. The third quarter was the first quarter since 2019 without any significant pandemic restrictions. The hotel markets have now returned to a more or less normal seasonal pattern and business mix. RevPAR have fully recovered to pre-pandemic levels, mainly driven by higher average prices. Hotel demand is broadly anchored, and business and group travel have increased. The strong market recovery translated into strong growth and profitability for Pandox in our third quarter. For comparable units, net sales and net operating income increased by some 78% and 84% respectively. Like for like, property management increased operating income by 39%. Our relationship with our banks remains strong, and we have almost SEK 4.5 billion in cash and unutilized credit facilities at the end of the quarter. Despite considerations paid for two acquisitions equivalent to around SEK 878 million krona, Pandox loan to value fell to 41.1%. Return on equity measured by annualized growth in EPRA NRV grew substantially and was approximately 18.18%. Next page, please. Here on this picture, 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, and as you can see, 2022 started weak due to travel restrictions, but saw a strong bounce back during the spring and early summer, a trend that has continued since then. In the third quarter, the hotel demand developed strongly in all our markets. The comparison to 2020 and 2021 is no longer relevant, as the current performance is now much more in line with 2019 since we have now moved out of the pandemic. Hotel demand in many larger cities increased significantly, while smaller and regional cities continue to develop well. Next page, please. Here we see Pandox total portfolio categorized based on type of location with RevPAR index versus 2019. Almost all segments in the hotel market are now trending in line or above the 2019 level. This is mainly explained by strong average price development. Occupancy has recovered but has a little bit left to go until we reach 2019 level. You can also see that the spread in performance between the different segments is currently very tight, which is a clear signal that the hotel market is almost normalized. Next page, please. On this slide, we see the same segments as the previous slide, but with occupancy instead of RevPAR index versus 2019. As you can see, occupancy has stabilized in all segments just under 2019 level. This is mainly explained by the fact that some demand segments still haven't fully returned to 2019 level. These are international long-haul travelers and to some extent, larger groups and events that have a longer lead time in its ramp up. Next page, please. In the beginning of August, we announced the acquisition of NH Brussels Louise with 246 rooms in central Brussels for EUR 35 million. Brussels is a growing hotel market that we have been active in for almost 25 years and know very well. We now own eight hotel properties in the city, six of which in operating activities and two in property management, making us a significant hotel property owner and hotel operator in the city. We are currently evaluating the best commercial alternative for the hotel, and with our strong local commercial and technical platform in Brussels, I am confident that we will be able to generate a good return on our investment in NH Brussels Louise. Next page, please. In September, we announced the acquisition of DoubleTree by Hilton Bath for GBP 40 million. The hotel is well invested and has a strong central location in Bath, which attracts both leisure and business travelers. Around 3.8 million people visit the city each year, and the destination has a UNESCO World Heritage status, which guarantees its long-term position as a high-quality destination. The hotel will be reported in the business segment operating activities and will be operated under management agreement with Axiom Hospitality. Next page, please. In September, we announced that we will divest InterContinental Montreal for a total transaction value of CAD 80 million. The hotel has 357 rooms, and we have owned it since 2007. For us, this transaction is well timed, and the price is attractive. We lock in value and free up capital to be recycled into continued expansion in our core markets. Closing is planned for the first quarter of next year. Next page, please. We continue to invest SEK 1 billion annually in our existing portfolio. These are investments with a good return and can, for example, be more rooms in hotels, renovation of rooms and public spaces, and conversion of non-productive areas. Lately, two examples from our portfolio are Scandic Park in Stockholm and Hotel Pomander in Nuremberg. Scandic Park have undergone one of the biggest modernizations in the hotel industry. All areas have been refurbished with the ambition of finding a way back to the hotel's origins in the early 1970s. The new products start up very well in the inner-city competition. I can really recommend an after-work visit to check out the public area. Hotel Pomander is the former Maritim Hotel Nuremberg, which we acquired in late 2019. Since mid-2021, we have been renovating the hotel and its 311 rooms into a modern high-quality product that will set a new standard in central Nuremberg. Next page, please. With that, I hand over to Anneli Lindblom, our CEO. Thank you, Liia. Good morning, everyone. This is a strong result if you look year-over-year, but also sequentially. It is an indication on what normalized earnings for us are in a normal functioning hotel market. It shows the strength in our business model and our ability to generate strong cash earnings. The biggest earnings improvement in the quarter was recorded in the operator activities, where the net operating margin rose to 22%, adjusted for government support. This is well in line with 2019 levels. All outstanding government support relating to COVID-19 were received during the quarter, with SEK 37 million in operator activities and SEK 48 million in property management. Repayment on deferred rent was made according to plan, and invoicing is now made according to original lease conditions. Next page, please. On this slide, we can see a comparison of the variable rent in our leases over the past seven quarters. In total, we have 96 leases with revenue-based rent and with the minimum contractual rent, and 32 leases which are purely revenue-based without minimum levels. On top of these, we also have seven fixed leases. In the third quarter, total variable rent amounted to SEK 378 million. The number of minimum leases generating variable rent continued to increase and reached 73, as you can see on the graph to the right on this slide. A few more leases are expected to cross over in the fourth quarter. Next page, please. Pandox performs internal valuation of the hotel properties each quarter. 97% of the properties have been externally valued during the past 12 months, and the valuations are in line with our internal valuations. Value changes were positive in the period as higher cash flow outweighed a slight increase in yields. In the first nine months, total changes in value amounted to a positive SEK 1.5 billion. Out of this, SEK 1.2 billion for investment properties and a positive SEK 300 million for operating properties. As you might know, according to IFRS, unrealized changes in operating properties are only reported for information purposes, but it is included in the EPRA NRV. Okay, the average valuation yield for investment properties was 5.45%, and for operating properties, it was 6.43%. Next page, please. On this slide, you can see the accumulated changes in value in our property portfolio since the start of the pandemic. During the most un certain phase, we had the negative changes in value in six quarters in a row, mainly due to lower cash flows. From the third quarter, 2021, based on gradually improving cash flows, changes in value have been positive. Measured from the start of the pandemic, total unrealized changes in value are still a negative 2.4%. Next page, please. Yes. As Liia Nõu said, we have two sources of financing: equity and normal bank loans secured by underlying properties. We have no market financing in formal bonds, and we have no external rating requirements. Given our business model, which focus on hotels and variable rents, 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 yesterday, Pandox is still valued with a discount to EPRA NRV around 40%. Next page, please. Okay. On this slide, we run through some balance sheet KPIs. Loan-to-value amounted to 47.1%, while EPRA LTV was 47.0%. This is in the lower end of our financial target range. Cash and unutilized credit facilities amounted to SEK 4.5 billion. Credit facilities maturing in less than one year amounted to SEK 12.7 billion, on which the majority in the first and the second quarter next year. We do, of course, have positive dialogues about the refinancing ongoing regarding all these credit maturities. We do, of course, expect some increase in costs gradually in 2023, given the development in the credit market. But with that said, we currently have a strong interest coverage ratio. Pandox also have some commercial paper program that are used to optimize Pandox financial costs via interest rate arbitrage. Commercial paper issued are always fully covered by our RCFs. Next page, please. On this slide, we continue with how some important balance sheet metrics have developed since 2016. With the exception of the interest coverage ratio, these metrics have remained relatively stable over the period. Just a few highlights. Loan-to-value declined to 47.1 in the third quarter, which is clearly lower than before the pandemic. The interest coverage ratio, as I mentioned on the previous slide, has improved quarter by quarter. The 4.8 recorded this quarter is a bit out of the ordinary on the positive side. Looking at the graph to the right, we see an uptick in average interest rates reflecting the development we have seen lately in the credit markets. Average repayment period and average fixed rates period have come down a bit this quarter, which is a natural effect as we haven't made any refinancing this quarter. With that, I hand over to Anders Berg, Head of IR, to guide us through what happened in the hotel market in the quarter. Thank you very much, Anneli. Yes, as Liia said from the beginning, the third quarter was the first restriction-free quarter since the fourth quarter of 2019. The recovery, which we already saw in the second quarter continued in the third quarter. For the first nine months, RevPAR largely recovered to pre-pandemic levels. RevPAR in the third quarter isolated actually surpassed 2019 levels with a good margin. Demand growth was broad-based with good growth in all Pandox markets. Domestic leisure demand remained strong during the summer. The domestic business demand also improved before and after the holiday season. We are now more or less back to normal seasonal pattern in business mix, although some international demand elements are still trailing 2019. ADR continued to strengthen in all demand segments in the third quarter as hotels worked actively with revenue management and prioritized rate in an environment with operational cost pressures. Larger cities saw their biggest relative recovery, while smaller cities continued to perform well, in line with a normalization of the hotel market. So far, rising inflation and higher energy prices have not had any clear negative impact on hotel demand. Next page, please. In the following six charts, we track occupancy, average daily rate, and RevPAR for Nordic regional, Nordic capitals, Germany, Frankfurt, UK regional, and London, and how they compare to 2019. The data points are monthly and year to date. The bars in the graphs are indexed to occupancy and ADR for 2019, and the lines are nominal RevPAR in local currency, except for Nordic regional and Nordic capital, where RevPAR are in Swedish krona. Starting with Nordic regional. As restrictions were eased in the second half of the first quarter, demand came back quickly and ADR began to rise from an already solid level. The resilience in average daily rate has been strong all through the pandemic. In the third quarter, supported by strong summer, average daily rate increased well above 2019 levels. RevPAR crossed over 2019 levels in March and have trended above those, and above 2019 since then. Supported by the strong third quarter, RevPAR for the nine months was clearly higher than 2019. The recovery is broad-based, but Finland remains a slightly weaker performer than the rest of the Nordic countries. Next page, please. As you know, it's been a general trend all through the pandemic that larger cities with a high dependence on international demand have seen a slower development than smaller and regional cities. During the second and third quarters, Nordic capital cities recovered relatively strongly in both occupancy and ADR. 2022 RevPAR was largely in line with 2019 levels in the third quarter, but is still trailing 2019 on a year to date basis due to the slower start of the year. However, year to date RevPAR is now only some 10%-12% below the 2019 level. Next page, please. Restrictions in Germany were lifted the latest, I would say, of in our markets actually on the twentieth of March, which meant that it started its recovery later than most of the Nordic countries. As you can see, occupancy and ADR have improved steadily from the reopening. In the third quarter, 2022 RevPAR exceeded 2019 by a clear margin. Also here, due to the weak start of the year to date, Germany is still some 18% below 2019. Next page, please. Frankfurt remains a good illustration of the rapid recovery in large and more international destinations that we have seen in recent months. In the third quarter, both occupancy and ADR were on aggregate on a good level, and RevPAR exceeded 2019 levels. Also here, due to the weak start of the year to date, RevPAR is still approximately 30% below 2019. This is explained by some international demand segments still having some way to go until full recovery. Next page, please. UK regional, as you know, has been the strongest performing market both during the pandemic and in the recovery phase after it, and it remained a solid performer also in the third quarter. The UK's open early strategy meant that UK regional hit the ground running in the second quarter, already at relatively high occupancy and ADR levels, and that run was extended in the third quarter. With the exception of January 2022, RevPAR in UK regional has exceeded 2019 every month this year. Year to date, RevPAR is approximately 13% higher than 2019. Next page, please. London continued to improve in the third quarter with 2022 RevPAR trending clearly above 2019. Despite a slow start to the year, explained by restrictions, closed offices, and limited international inbound travel, year-to-date RevPAR is now on par with 2019. Next page, please. With that, I hand over to Liia Nõu again. Thank you, Anders. With RevPAR at or above 2019 levels, it's fair to say the pandemic is behind us. Even if we have been missing some international demand, the business mix is now more or less normal, and we are starting to see the hotel market move in line with normal seasonality. I am proud of our journey through the pandemic, and on behalf of all the hardworking people at Pandox who report such a strong result. It clearly shows that our business model is super strong and that we have a world-class team in our company to support it. As the hotel market has gradually normalized, so has our earnings. Through a combination of operational improvements and prudent management of our balance sheet, our financial position is strong. A large percentage of Pandox revenue is variable, which offers protection against increased energy costs and financial costs. We therefore have a good starting point in more uncertain times. How this tug of war between strong underlying demand in the hotel market and risk relating to disposable income and business cycle will play out is too early to tell. However, based on our experience, the hotel market demand is normally quite resilient, and our focus on upper mid-market hotels with mostly domestic demand is a strength, particularly in uncertain times. Next page, please. Before we move over to the Q&A, I would like to remind you that we have our Hotel Market Day coming up. The date is fifteenth of November, and we promise you an interesting afternoon. The topic of this year is future of work and what that means for hotels. If you haven't registered, please do. You'll also be able to follow the event online at our website. Next page, please. We now move over to the Q&A. Operator, we are now ready for questions, and please do not forget to hand the call back to us afterwards for Robin's presentation. Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. That is zero one if you would like to register for a question. There will now be a brief pause while questions are being registered. As a reminder, if you do wish to ask a question, please press zero one on your telephone keypad now. There seems to be no audio questions at this time, so I will hand the word over to Robin Rossmann, Managing Director of STR. We have a couple of questions from the web. Maybe we can go through them first. The first question is, how are bookings looking for Q4 given current market conditions? Well, the booking for the Q4 and for the beginning of the year looks good. As said, we don't see anything on the market disturbances, but the performance is looking good. How are you expecting energy costs to impact profits going forward? Well, as we said, about 80% of our portfolio is in property management, where the operator bears these costs and where we have a sort of strong resilient ADR, which has been compensated with that. In our own operations, which is less than 20% of our market value, then of course, energy costs will be an increasing part of the cost. There are, however, especially in our Brussels platform, we have a number of agreements which have been fixed, so there will be a prolonged time before we exactly see those increase. We also have a resilient and increasing ADR compensated for this to a large extent. How strong do you see the reliance in the yield used in valuation given rising interest rates? We have to remember that the yield we see today are actually higher than in 2019. The hotel industry, we have not been part of the yield decrease or the yield squeeze, which has been going on for the last two-three years. There is a sort of a buffer in that. Of course, there is some pressures in the yield, and we have taken into account that, as you see in our quarter reports already. Even though the cash flow, the strong kinda cash flow more than offsets that. I should add that those questions were from Simen Mortensen at DNB. We have a question from Anders Sandli at Kepler. Can you please elaborate on bank financing? On bank financing? Yes. As you know, we have only bank relationship banks and so the bank loans. We have during the pandemic been in close dialogue, and we're confident with the banks consistently. We see actually a more active environment when it comes to discussing new financing with our banks. Even though, of course, there are market disturbance and pressures on the underlying interest rates. When it comes to margins and the sort of increase in margins, we have to a large extent already seen that during the pandemic, and it's also already sort of when it comes to margin already in the numbers. Of course, there's some pressures on the refinancing. Those were the questions from the web. Now we are ready for Robin's presentation. Good morning, Anders. Can you hear me? We can hear you. Please go ahead, Robin. Well, that is wonderful news. Good morning, Anders. Good morning, Liia. Good morning, everyone. It is very good to join you today. I'd like to just carry on from, I think the most important statement from a certainly from a hotel market performance perspective that both you, Liia, and Anders mentioned in your presentation, and that Q3 was a return to normal. I'd like to just add on to that in particular, what is really important is it's not just the summer bit of Q3 that it was returned to normal, but it was September, and as we go into October too. The reason why I'm starting by just pulling that out is, some may remember that, many, including Bill Gates, called out during the early and middle days of the pandemic that business travel would never be the same. In fact, Bill Gates said that there would be a 50% decline in business travel. I can say with great confidence, given we have actual data now, that has not transpired in any way. As we've gone through the months coming out of the leisure season into the business season, we have seen a return to almost normal business travel. Still some constraints there that have been mentioned, but certainly nowhere near the kind of scenario that many thought would happen. The reality is, as with many things in post-pandemic, things are returning to normal, and people are valuing and recognizing that travel in person is fundamental to a successful business. On that sort of opening note, I'll go on to my presentation. I'll move over the cover slide, which is holding on to gains, facing economic pains, and talk a bit more about that last question, particularly towards the end. I will start again, moving over from global overview onto page 33. Just giving that global picture and really highlighting that when you look at where we've reached in September, for the month of September, again, this is more a business month than it is a leisure month. If you look at Europe, 77% occupancy, which is only 5% behind 2019 levels. From a rate perspective on the following slide 34, you can see that has been done with a monthly ADR growth of 22%, really quite spectacular, and year-to-date ADR growth of 17% for Europe as a whole. Moving on to slide 35. What that means is for the month of September, 16% RevPAR growth, and 3% year-to-date, given the slower start with COVID restrictions. Onto the following slide, last sort of global picture. One of the big trends over the last three months has been the recovery of global gateway cities that have been more reliant on international travel. You can see even in the year-to-date picture, occupancy index to 2019 for most, except those in Asia and underpinned by, you know, continued zero COVID-19 policy in China. Excluding Asia, most are recovered almost 90% year-to-date, which is pretty amazing given the start to the year. Just drilling down on Europe, cover slide next, and then going over onto slide 38. Looking at. Really this is just purely to show the trend line of all the major countries across Europe. The trend line is one where we've seen since July, August, things settle into a bit of a new normal. Most important, you'll see for the most of these countries, even though we've gone into October, occupancies have been trending at broadly the same level. Some countries like Ireland, Italy, Turkey fully recovered. Other countries less so and still in recovery phase. Like was mentioned before, Germany was a bit later to open up and still recovering there at about 91%. Going on to the next slide 39. This again is just stepping back, looking at aggregated European numbers, looking at occupancy week by week indexed to 2019 split between weekday and weekend, starting with the fifth of June on the left, ending with sixteenth of October on the right. A bunch of information to absorb there. Really what this is intended to show is how the recovery has trended week by week, split between weekday demand, which happens to be more business-led demand, particularly in the non-summer months, and weekend demand, which happens to be more leisure-based demand. What you can see is that there was a steady improvement in both all the way up until the last week of summer. The last week of August. Then we did have going into September a bit of a transition phase where we saw the recovery drop back by one week. Obviously, sometimes people take a few days upon getting back from holiday to finalize their travel plans. Don't usually do that first week of September. Quickly thereafter, we've seen it recover to that mid-single digit level of occupancy below 2019 levels on the weekday, and a bit better than that, 2-4 percentage points on the weekend. The reason why that recovery is not fully there is as we mentioned before, if you go into slide 40, it's that certain types of demand, some international demand hasn't come back. Also group demand, you can see on the left-hand side there, is still trending about 30% behind 2019 levels. If you go ahead into the future, and you can often do that in the hotel industry by looking at what's happening in the U.S., you would see that group demand is now single digits behind 2019 levels in the U.S., so only about 5%. We do expect that to recover as we go into next year because it does have just a longer lead time. That transient demand is definitely there and in excess of 2019 levels. Going on to the next slide 41. Just touching on some cities in particular, because as I mentioned, they were the last to recover. Cities as we got into July were anywhere between you know, mid- to low 90s% recovered, up to 100% recovered in some cases. There obviously are some exceptions either side of that. The real question though was, and we've been tracking this for a while, is going back to how I started this presentation. Would the recovery hold true or be resilient as we headed into reliance on business travel? When we looked at business on the books, going on to the next slide, we looked at business on the books for the next 90 days. We looked at what was there at the beginning of September and compared it to what was at the beginning of June. Now bear in mind, June, July and August was one of the strongest summers for many markets in Europe. With longer lead times because people were planning their leisure breaks for I think more than usual this year going into the summer. When we look at business on the books for the three months going into September, October, November, and compared it to June, July, and August, what we saw was encouraging, even though there are negative numbers there. Because what those negative numbers mean is that there was less rooms already sold for the next 90 days going into the business period than there were going into the leisure period. However, the difference was not that big in most cases. Typically business demand has later pickup. We expected that negative variance would, for the most part, if it was mid-single digits, be absorbed through the later booking pickup of corporate travel. What I can say is, if you go onto the next slide, that that did materialize. That if you look at September for those cities, again, you can see that with the exception of those that had double digits sort of differences in business on the books like Edinburgh, that was underpinned by things like the Fringe Festival, which is a bit of an exception. If you take those out, generally, anything that had mid single digits negative business on the books pacing recovered that, and we saw that occupancies held true through to September. I'll talk about the rest of Q4 later. Before I do, going on to the next slide, looking at ADRs. What we have seen is that because there was that huge pent-up demand for leisure travel, particularly on the luxury end, we saw rates really accelerate in the summer months. You can see here ADR across E.U. 27 countries, indexed to 2019 by week, showing the total combined bar being nominal ADR indexed and then the dark blue portion being real ADR adjusted for inflation. Really since July or even before actually May, we've seen real ADRs being in excess of 2019 levels with the summer months, that's translating to almost 30% nominal ADR increase. In recent months, as we have expected, we expected that 20%-30% ADR increase to drift back to something mid-teens because that real pent-up leisure demand was going away. We've seen it do exactly that. We've seen it drift back to around that mid-teen% and stabilize broadly there, which would leave real ADRs back at 2019 levels, which would, for the most part, be enough to get profit margins back to 2019 levels, taking into account cost inflation. Next slide, please. When you look at slide 43, you'll see that again, this is just to show the trend. It's a bit more varied than looking at occupancy. ADR has, you know, broadly stabilized across countries with the slight adjustment being as shown in the aggregate version that we have seen things drift slightly back towards mid-teens% in the recent months. Next slide, please. Just looking at those cities again. Almost all cities showing rate growth ahead of 2019 levels on a year-to-date basis. Next slide, please. If we focus on the summer months, we can see that again, that is an even more positive picture. Next slide, please. Slide 48. One thing that has materialized this year and it was consistent with what we saw coming out of the 2008 financial crisis, but more accentuated and that is because of that pent-up demand. We have seen that push rates at the luxury end of the market higher than the rest of the market. Rates for luxury ho tels year-to-date across Europe, up 46%. Index 146 to 2019 on the left-hand side there. The rest of the classes indexing in a relatively narrow range, anywhere from double digits up to sort of mid-teens. In terms of occupancy recovery, that's been broadly the same across all the segments, except for economy, which has attracted a faster occupancy recovery, so close to 100% recovery. As we go forward, we expect this trend to sort of normalize, in the sense that we think, you know, luxury will move back down towards the rest of the market's ADR indexing. Just a bit onto the outlook. Next slide, please. Past that slide too to the next slide, which is across major markets, business on the books is much improved. This slide shows the teal bars being this year's business on the books for the next 90 days from the beginning of October or middle of October to the same time last year, the blue line. The good news is that it is improved, and it would also be expected that it's improved given at this time last year many of us were having to relook at our travel plans and pause them as COVID cases were on the rise across Europe. What we see there is those green lines in particular are filling up the areas that we're missing last year, which is that midweek demand. The blue spikes are the weekends, and the green line is midweek. Really what this reflects is a continuation of the trend that I showed previously, which is business on the books is suggesting that we're not gonna see a massive fallback in the recovery. Business demand is there that should continue to hold occupancy recovery, at least at sort of current levels for the next few months based on that data that we have. Next slide, please. On the just a couple more trends to talk about or really one more trend is that this is using London and the regional U.K. as a proxy for what we're seeing across most of Europe. That we did see regional markets recover occupancy to 2019 levels far sooner because they were less reliant on international travel more resilient with domestic demand. We've seen that remained resilient all the way through to October. Regional markets and regional U.K., As an example, is maintaining that near 100% recovery. What we are seeing is that gateway cities like London are catching up. Based on the business on the books, we would expect that the gap to continue to close from an occupancy perspective because international travel is now coming back and in particular, driven by a weaker euro, a weaker sterling. We're seeing a lot more transatlantic demand come through, particularly for cities that attract, you know, American-based demand. From a rate perspective, next slide, please. You can see that what that's driving is rates for regional markets have, you know, grown and are stabilizing, sort of drifting slightly from that 20% odd level. The cities which took a longer time to recover have caught up on that and are trending to exceed that in the coming months. Typically what we do see with a weak euro, weak sterling, is that does help provide upside momentum to rates in those cities that have a lot of dollar-based demand, whether that be from the U.S. or the Middle East. With that, I will go on to the conclusions, and that is kind of where I started. The really important data point not to ignore is that the risks around business travel coming back have not materialized. It has indeed come back even though we're still in the early months out of the pandemic. Group demand is not back yet, but it is slowly recovering. ADR growth has been exceptional, and while it is sort of drifting down slightly from those leisure highs in the summer months, it is stabilizing in the sort of mid-teen level. There is no doubt that the worsening economic outlook definitely represents a downside risk. The hotel industry is, like many industries, cyclical and is dependent on economic activity and consumer confidence. Those represent downside risks to future performance. Nonetheless, those risks have been there for a while, and the industry has remained resilient nonetheless. Based on business on the books, it is still resilient for the time being. There are some significant upsides to those risks. The strong dollar and weak euro, weak pound will help drive both occupancies and importantly rates on markets that benefit from international demand. There is still pent-up business demand. There is still like leisure demand. There was pent-up leisure demand. There is still pent-up business demand that is taking its time to work through into materializing, people planning events, getting back together, going seeing clients for the first time in a long time. That is still there, and there is recovering group demand. The other upside risks that I haven't actually put on here is that the one major market, particularly for countries like Germany that hasn't come back is China. While there are currently no signs of when that market might open up, when it eventually does, that will help drive increased demand from that segment, which is not come back yet. On that note, I will hand back to you, Anders and Liia, and say thank you for having me this morning. Unless there are questions. Thank you very much, Robin. I would like to check with the operator whether we have any additional questions from the telephone. Yes, we do. We have a question from Fredrik Stensved from ABG Sundal Collier. Please go ahead. Thank you very much. Good morning. A couple of questions from my side. Firstly, on the number or the share of leases generating turnover rent now in Q3, it's up to 73 leases or 76%. Quite a step up versus Q2. I was wondering if you could share any sort of data or insights into the 25% not generating turnover components today. Is that due to a weak Q1, or is it below the turnover hurdle if you look at Q3 isolated as well? It is related to the fact that we had a slow or poor Q1, and as well remember Germany easing the restrictions in the middle of Q2. Then again, the minimum rents, especially in Germany, are on a higher level because the transactions made was so they're on a higher number. It is more difficult number to beat. Right. If you looked at Q3 isolated with sort of a normal Q1, Q2, can you share what the corresponding number would be? 73 leases today. Well, we don't have it on the top of my head. But it would of course be higher. Of course, Q3 is a normalized quarter. Without having that exact number, but without having the drag of the first five months, then we would of course be on a majority part of available leases. Yes. I would say it would have been the same as in 2019, I guess. Yes. Perfect. Secondly, the sort of delayed COVID relief payments that you're receiving Q2 and Q3, will there be any more of those coming going forward, or are we done now? No, we are done. We are definitely done with those. We have it all in the Q3 report. I mean, we have also checked because there is a discussion regarding if this could be a restriction for us to give dividends, but it's not. It's still up to the board to decide on the dividends. The government support that we have received this year will not be a restriction for giving dividends. Perfect. Thank you. Last question. If that's possible to answer, do you know or can you share the FX impact on sales sort of Q on Q from Q2 to Q3? What is the FX impact? The FX impact on EPRA NRV, meaning or on No, on top line, sales turnover. Compared to 2019? Wow. No, not compared to 2019, just sort of the FX impact on a sequential basis. Okay. From the last quarter you mean then? From the last quarter. Mm-hmm. Mm-hmm. Exactly. We don't have Anneli here. No. We have to come back to you with that one. No, we don't have that. Understood. Thank you very much. That's all from me. Yeah. You also have the rates in the note five if you would like to compare to some. The one used in the report. Thank you. Okay. That's all, folks. Thank you for participating in this call, and we really appreciate your time and interest in Pandox. Our fourth quarter report will be published next year on ninth of February. Thank you. Have a great autumn. Go out and see and stay at our hotels and enjoy life. Goodbye. Thank you. This now concludes today's.