Scandic, Hasselbacken, sell, buy, Abba, museum, Stockholm, Pop House, owner, new, Djurgården, revenue, operations, profit, loss
Scandic Hasselbacken (photo: Scandic Hotels)

ABBA museum firm to buy Scandic hotel

Pop House AB, which also runs the nearby ABBA The Museum and Pop House Hotel, will buy the Hasselbacken in Stockholm.

Scandic has signed an agreement for the sale of the Scandic Hasselbacken in the Swedish capital to Pop House, a company which among other things also operates the nearby ABBA The Museum and Pop House Hotel with its restaurant and bar.

Pop House AB also recently acquired the historic Cirkus Theater complex located next to the Scandic Hasselbacken.

Located on Stockholm’s Djurgården island, the property has 113 guest rooms and 17 meeting rooms and has been operated by Scandic since it was built in 1992.

The sale price amounts to around SEK 230 million (€21.85 million) “on a debt-free basis”, Scandic says, adding that the transaction is expected to result in a capital gain for Scandic of around SEK 180 million.

The new owners are scheduled to take over the operations of the hotel as soon as March 1.

In 2018, the Hasselbacken contributed approximately SEK 90 million to Scandic’s net sales and SEK 10.5 million to its adjusted EBITDA. The sale will be recognised in the accounts in the first quarter of 2019.

The move comes amid lower earnings in its Swedish operations as well as a change of leadership.

Unique location
“We’re very happy to have reached an agreement, and we’re certain that Pop House AB will be successful in further developing the hotel with their other operations nearby,” says Peter Jangbratt, head of Scandic Hotels Sweden.

Jens Mathiesen, the new president and chief executive of Scandic Hotels Group, added: “Scandic Hasselbacken has a unique location near the new owner’s other operations, and as we hand over the operations of the hotel we are convinced that it will play an important role in their concept.”

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