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CEO

Message

Dear Shareholders,

On 1 April, I took up my new position as CEO of Quartiers Properties. This quarterly report thus marks the first quarter in which I have served as CEO.

I want to start by saying how proud I am of what has been achieved in recent years, despite the setbacks of a pandemic and a faltering global economy. We have created a real gem in Marbella, which we aim to turn into one of the region’s largest hospitality businesses.

In a short time, we have built a brand that can compete with the very best and which we look forward to expanding into new areas. What’s more, we’ve assembled a great team that genuinely cares about our customers, resulting in the highest customer satisfaction ratings in the market. My expectations have definitely been exceeded.

With the transformation of our business into a company focused entirely on the development and operation of hotel properties largely complete, our focus in the second quarter has been on creating the conditions for growth and preparing to take Boho Club to new destinations. At the same time, we continue to develop our existing operations in Marbella to their full potential. A milestone in this work is the upcoming name change to Boho Group that we communicated a couple of weeks ago.

In Marbella, we are now investing in expanding the hotel with more revenue-generating units that are expected to contribute to an increase in turnover equivalent to approximately 20% per year for Boho Club as a whole. The high profitability of the projects is also expected to have a positive impact on earnings. Already in Q4 this year, we will start to see the effects of these investments, with full impact in 2025.

We have also started planning the future expansion of the Boho Club together with the world-leading architectural firm Rafael de la Hoz Architects. I look forward to presenting these plans to you soon.

More broadly, we have partnered with Catella Corporate Finance to reduce our financing costs and, most importantly, to develop an ambitious growth plan that will take Boho Club to new attractive areas around the Mediterranean.

At the same time as we invest in growth, we are constantly reviewing our costs to balance them with where we are today. I can report that in the first half of the year we reduced our central administration costs by 30% compared to the same period last year. The combination of increased revenues, lower financing costs and adjusted overheads and operating costs should give us a sound basis for the future.

It is a big task to take Boho Group to new levels, but the second quarter has been a clear step in the right direction, and we hope to see that what we have done is already bearing fruit in the second half of the year.

I look forward to sharing more about what we are doing on an ongoing basis and staying in close contact with you, our shareholders.

Thank you for your continued support and trust.

Yours sincerely,

Andreas Bonnier
CEO Quartiers Properties