Press Information from The Swedish Exhibition & Congress Centre in Göteborg, Sweden: A step closer to Triple Towers

In 2009, the Swedish Exhibition & Congress Centre successfully overcame the effects of the worst economic crisis since the 1930s.

The Board of the Swedish Exhibition & Congress Centre, therefore, has decided to proceed with its plans to extend Hotel Gothia Towers.

“If everything pans out as we hope, the decision on the hotel extension will be taken at the end of this year,” says Lennart Mankert, President and CEO of the Swedish Exhibition & Congress Centre.

** Group turnover at SEK 785 million (SEK 794 million) is on a par with turnover in the last three years. The same applies to cash flow, SEK 96 million, and to earnings after financial income and expenses, SEK 27 million. Operating income was SEK 68 million. The importance of the Swedish Exhibition & Congress Centre in generating spin-off business in Gothenburg remained at a high level.

** In 2009, we anticipated a tough year for all Group business operations due to the global financial crisis and rapidly shrinking economy. The crisis that shook the world in the autumn of 2008 struck directly at our hotel business.

Although the recession was deeper than we could have imagined, the Swedish Exhibition & Congress Centre coped with the difficulties and was able to demonstrate profitability in all its business activities. This was due to our organisational adaptability and effective cost-cutting measures in combination with our potent exhibition and conference programmes.

** The planned extension of Hotel Gothia Towers is for a third tower, 29 storeys high, to the east of the existing two towers. The new tower will house 478 rooms, a panoramic-view restaurant and a conference floor. In addition, the 19-storey centre tower, Crown Tower, will be extended by a further five storeys, making it 24-storeys high. The extra five storeys will contain 51 new rooms of five-star standard, a gourmet restaurant and an exclusive fitness/wellness section.

The three towers, which will contain a total of 1,208 rooms, will have a common lobby and will be joined by glazed footbridges.

** The details of the extension plans were decided in spring 2008, but the Swedish Exhibition & Congress Centre, which owns and operates the hotel, chose not to proceed with the project at that time.

“It just wasn’t the right time for it then. But now there’s a whole new outlook,” says Lennart Mankert.

“Following the downturn in 2009, we’re now seeing the economy recovering. We also believe that, in the long term, there are good prospects for strong growth in Gothenburg’s tourist and visitor industry, of which the Swedish Exhibition & Congress Centre is an integral part.”

** The planning work for the extension is expected to be completed at the turn of the year 2010/2011, at which time construction will be all set to commence. The construction cost is estimated at around SEK 800 million. The new hotel would then be ready by the turn of the year 2012/2013, in time for the European Athletics Indoor Championships 2013.

** Roger Holtback, Chairman of the Board of the Swedish Exhibition & Congress Centre, sees the hotel extension as an important part in the development of Gothenburg as a meetings city.

“Triple Towers will strengthen Gothenburg’s position as a destination and the Swedish Exhibition & Congress Centre as the leading meetings organiser in Scandinavia. Our city will become more attractive to our target groups, not least the growing group of wealthy meeting travellers,” he says.

As far as incoming tourism was concerned, the Swedish Exhibition & Congress Centre accounted for 24 per cent of tourism turnover in Gothenburg and approximately 30 per cent of the total hotel occupancy. The Swedish Exhibition & Congress Centre today generates tourism spin-off effects to the tune of more than SEK 2 billion.

“That’s almost three times our turnover. Our goal, with the new expanded hotel complex, is to eventually increase our impact on tourism to SEK 3 billion.”


Want to know more?
Call Lennart Mankert, President and CEO, Swedish Exhibition & Congress Centre, tel +46 (0)31 708 80 10, or Roger Holtback, Chairman of the Board, Swedish Exhibition & Congress Centre, tel +46 (0)31 10 70 90.

412 94 Göteborg. Besöksadress: Mässans Gata/Korsvägen.
Tel: 031-708 80 00. Public Relations: 031-708 80 06, 031-708 80 07. Fax: 031-708 84 60.
E-post: press@svenskamassan.se www.svenskamassan.se

Svenska Mässan Stiftelse, Säte/Registered Office: Göteborg, Org.nr/Reg.No: 857201-2444