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CEO

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The second quarter marked a clear turning point for Boho Group. After an unusually challenging first quarter, characterized by exceptionally high rainfall along the Costa del Sol, we saw in the spring how the market gradually normalized while the improvements we have implemented in the business began to have full impact. The combination of a stronger market and a more efficient organization created the conditions for a significantly better quarter. Overall, EBITDA for the first half of the year improved by just over SEK 5.5 million, despite a largely unchanged turnover – a clear confirmation that our strategy is delivering results.

The quarter also marked an important financial milestone. The refinancing with Deutsche Bank is now having a clear impact and reduces our annual interest costs by over SEK 6 million.

Turnover in the second quarter increased by 2.3 percent compared to the same period last year, while the result strengthened significantly. Behind the development is a long-term effort to streamline the business, increase the quality of the guest experience and optimize operations. When the market becomes more selective, it is quality, not price, that creates competitive advantages.

We also experience that the market is developing in a more positive direction than at the beginning of the year. As the weather improved, demand returned, the booking rate increased and activity among international guests strengthened. Although the world around us continues to be characterized by uncertainty, we see a more stable market today, which gives us a good foundation for the rest of the year.

The hotel continues to be the strongest driving force in our development. During the first half of the year, hotel revenues increased by around seven percent, driven by a higher average room rate and a continued strong premium position on the Golden Mile. In Food & Beverage, Boho Club is also being developed as a destination. During the spring, we redesigned one of our restaurants to the “Bungalow 21” concept. With an international restaurant concept, we are strengthening the destination’s attractiveness and creating better conditions for long-term value creation. In wellness, we are also continuing to develop our own Boho Wellness, where we see significant potential.

During the quarter, our ownership base was also strengthened when Luxembourg Finance House, together with Frank Zweegers, Fernando Moreno, Felix Ruiz Hernandez and Mattias Kaneteg, announced that they intend to pool their ownership in a joint investment company. This is a clear confidence in our strategy and the significant value potential that exists in Boho Group.

At the same time, work continues on our most important long-term value driver – the expansion of Boho Club on the Golden Mile. Following the municipality’s approval, we are now in the next phase of the detailed planning process. The vision is to develop the current facility from approximately 40 rooms to up to 260 rooms, complemented by restaurants, beach club, wellness and commercial activities. The combination of operational excellence and long-term property development is what makes Boho Group unique.

We are now entering the most important quarter of the year – the period that historically accounts for a significant part of the year’s results. With a gradually stronger market after the weather-challenging start to the year, a business that is developing in the right direction and an organization that is stronger than a year ago, we enter the summer season with great positivity and high expectations for a strong third quarter.

Finally, I would like to extend a warm thank you to our employees, our guests and our shareholders for your continued trust. Together, we continue to build Boho Group with the ambition of creating one of Europe’s most attractive hospitality companies and long-term value for our shareholders.

Yours sincerely,

Andreas Bonnier
CEO Boho Group