Quartiers Properties

SHORT-TERM IMPACT ON DEVELOPMENT - WEATHER PLAYS A PART
The period was characterised by persistent bad weather in Marbella, which meant a decline in occupancy compared with the first quarter of 2024. At the same time, the company has invested in building an organisation to establish Boho Club as a destination in the growing retreat segment. Something that will contribute to a reduced dependence on both season and weather.

JANUARY - MARCH 2025

• Revenue from operator activities totalled SEK 14,181 (15,476) thousand, corresponding to a decrease of 8.4%. The decrease can be attributed to lower occupancy in the hotel as a result of persistent bad weather, while average revenue per night remained at the same level.

• Income from the disposal of properties during the period totalled SEK 5,166 thousand (13,963) and relates to the sale of an apartment in the Hacienda Collection.

• Operating profit before depreciation and amortisation (EBITDA) amounted to SEK -8,977 thousand (-5,754), corresponding to a decrease of SEK 3,223 thousand compared with the previous year. Operating profit adjusted for the result of divested properties totalled SEK -9,485 thousand (-5,917).

• The company’s cash flow from operating activities including the disposal of operating properties amounted to SEK -4,891 thousand (-9,201).

• Gross profit decreased by SEK 3,516 thousand and totalled SEK -8,388 (-4,872) thousand. In addition to lower income, the result was negatively affected by temporarily increased personnel costs.

• The result after tax totalled SEK -15,792 (-20,221) thousand.

• Earnings per share for the period 1 January - 31 March 2025 amounted to SEK -0.27 (-0.35).

• Reported equity as at 31 March 2025 amounted to SEK 166,630 thousand (222,789).

SIGNIFICANT EVENTS IN THE FIRST QUARTER
No significant events have occurred during the period.

EVENTS AFTER THE END OF THE PERIOD
At the end of April, Marbella Municipality granted approval to Boho Group’s application for an exemption from the current zoning plan. The approval paves the way for the creation of 28,400 square metres of hotel space and is the first exemption of its kind granted to a hotel project in the municipality.

DEAR SHAREHOLDERS,
Boho Club has started 2025 with an extraordinary weather challenge and we reached an important milestone for our upcoming building rights at Boho Marbella.

The quarter has been characterised by the worst weather Marbella has experienced at this time of year in over 70 years - and the wettest in over 20 years. This has affected the entire market in Marbella and the surrounding area, a region that usually averages 320 days of sunshine per year.

Nevertheless, we enjoyed a strong start in January, with an average occupancy rate of close to 60% and increased room revenue compared to the same period last year. This is particularly noteworthy as 2024 was a record year for Boho Club, confirming that our investments in organisation and structure were the right strategy and setting expectations for a positive quarterly result. Unfortunately, the joy was short-lived as cancellations increased with the extremely bad weather and new bookings failed to materialise in anticipation of better weather.

Despite these conditions, we managed to outperform the market. With an occupancy rate of 58% in March, we outperformed our competitors’ average of 55%. For the first quarter as a whole, our average occupancy was around 57%, compared to the market’s 53%. This shows that Boho Club continues to stand strong - even when external factors challenge us.

In addition, we had organised our operations to handle a significantly higher flow of customers. Unfortunately, it is not possible to adjust the level of costs at the same pace as the weather changes, which resulted in a cost base that was too high in relation to revenue. We take this very seriously and are actively working on structuring our costs to be more adaptable to weaker market conditions. At the same time, we recognise that demand can return quickly, and we are therefore seeking a balance where we reduce our costs without compromising the customer experience.

Finally, I would like to highlight a milestone that means a lot to the company: the approval of our application for an exemption from the current zoning plan, which is the first exemption of its kind granted to a hotel project in the municipality. This decision shows the municipality’s willingness and faith in our development project and gives us the opportunity to continue working to ensure the development of 28,400 square metres of hotel space. This event is the single most important in the company’s history, as it provides a significant increase in the value of our properties in the long term, while giving Boho Group the opportunity to establish itself as one of the leading hotel operators in the region.

We take important lessons from this challenging quarter and continue to build on our strong appeal and the trust we have with our guests. With a dedicated team, a unique offering and a growing reputation as one of the Costa del Sol’s most popular destinations, we look forward with confidence to continuing to deliver memorable experiences - whatever the weather.

Yours sincerely
Andreas Bonnier
CEO Quartiers Properties

Boho Group AB (publ) is required to disclose this information under the EU Market Abuse Regulation. This information was provided for publication through the agency of the contact person above at 08.00 a.m. on 15 May 2025.