First Hotels AB publishes year-end report for the second half and full year of 2023


  • Net sales 38 065 (15 648) TSEK
  • Operating resultEBIT 46,483 (-4 455) TSEK
  • Result before tax 35 793 (-7 107) TSEK
  • Result after tax 36 648 (-7 107) TSEK
  • Cash flow from operating activities -6 586 (-1 386) TSEK
  • Earnings per share before dilution 0.57/-0.17
  • Earnings per share after dilution 0.57/-0.13


  • Net sales 55,113 (27,955) TSEK
  • Operating result EBIT 41 892 (-19 161) TSEK
  • Result before tax 29 996 (-22 875) TSEK
  • Result aftertax: 30 852 (-23 128) TSEK
  • Cash flow from operating activities -14 067 (-2 606) TSEK
  • Earnings per share before dilution 0, 50/-0,40
  • Earnings per share after dilution 0, 50/-0, 39


  • On June 12, Reato Group entered into a conditional agreement to acquire two connected properties, Lund Saturnus 27 and Lund Saturnus 30, as well as the operating company Hotel Planetstaden AB, from Planetstaden Holding AB.
  • The Annual General Meeting on June 21 decided on the re-election of board members Terje Nesbakken, Bruce Grant, Håkan Gustafsson, Jan Lorensson, and Anders Smedsrud, and the election of Jonatan Raknes, while Sebastian Nordvang resigned as a board member. Terje Nesbakken was re-elected as chairman of the board.
  • Reato Group secured financing of MSEK 286 for, among other things, the execution of the acquisition of hotel properties and operating companies in central Lund.


  • On February 29, 2024, the general meeting unanimously decided to change the company's name from "Reato Group AB (publ)" to "First Hotels AB (publ).”

Our results for 2023 demonstrate our strength in delivering even in a challenging market environment. We increased net sales by 27.1 MSEK from the previous year, which is a result of our ability to adapt and operate efficiently despite the challenges and changes in travel behaviors this year. The acquisition of Hotel Planetstaden with 196 rooms also contributed to our successful year. We ended with 6,636 rooms under First Franchise at the end of the period, an increase of 38.7% compared to the previous year. This represents a performance of both organic and acquired growth.

The acquisition of First Hotel Planetstaden and our successful securing of 286 MSEK in financing represent important milestones in our strategic growth plan. These initiatives not only strengthen our position as a leading franchise company but also confirm our strategic focus on property investments as well as operational responsibility for both our own and others' hotels.

During 2023, Hotel Planetstaden experienced a 26.8% increase in RevPAR, primarily due to an improved occupancy rate of 21% and a 4.9% increase in ADR (average daily room rate). Although we experienced some system-related challenges when taking over operational responsibility for the hotel in July and October, we still saw an encouraging increase from 0.65 to 0.70 in RGI from 2022 to 2023.

For the second half of 2023, after we took over operations, we recorded a 17.3% increase in RevPAR, driven by a 12.9% increase in occupancy rate and a 3.9% increase in ADR compared to the period before takeover.
We faced some challenges regarding operations and system changes during July and October, but we navigated through them safely, and we experienced very positive development from December 2023 to February 2024. During this period, the hotel performed in line with the market average (RGI = 1.0). This development gives us increased confidence that our goal of achieving a "fair share" and RGI of 1.0 for the entire year 2025 is within reach.

The launch of the First Partner Collection (FPC) program has been very well received in the market and contributed to a solid increase in the number of hotels and rooms connected to First Hotels. FPC is a fundamental link to the chain with a scalable model based on desired services. As of 2023, a total of 30 hotels with a total of 1,656 rooms were connected to the chain's platform. The program and services will continue to evolve further in 2024 to even more effectively leverage this platform's potential.

Through the First Member program, we have seen growth in our member base, indicating the attractiveness of our offerings and increasing demand for our services in both the business and leisure segments.

We have increased our investments in sales, distribution, and digitization resources to create even better results for our franchisees. In 2024, we plan to carefully review and improve our digital platforms. The goal is to ensure that both we and our franchisees are using the most efficient and profitable platforms for profiling, sales, distribution, and booking.

We expect in 2024, as in previous years, to see some turnover in our existing franchise portfolio and the number of rooms, but through our focus on property investments and operating our own and others' hotels, we still look positively to achieve net growth in the number of rooms linked to our franchise model.

We have increased our investments in resources related to sales and distribution, as well as digitization, to help create even better results for our franchisees. In 2024, we will review our digital platforms to ensure that we and our franchisees are working on the best and most profitable platforms for profiling, sales, distribution, and booking.

First Hotels AB will continue to accelerate, and our growth strategy through the franchise model as well as property investments and operating our own and others' hotels will be further clarified in 2024.

A big thank you to our employees and guests for their contributions to our success. We look forward to an exciting and successful 2024 with an increasing pace of growth and strengthening our position in the market.
- Thomas Gillespie

This report has not been subject to review by the company's auditor.