Scandic looks to Norway and Finland for future growth

Hotel company strengthens position in Nordic region, aims for 12 new hotels in 2011

Scandic Hotels has reported that its total revenue for 2010 increased by 14% and revenue per room by 9%. The company has also strengthened its market position, opening 11 new hotels during the year, and managed to remain profitable. Net operating profit (EBITDA) came in at €61.8 million, giving a profit margin of 8.2%. The financial results include opening costs for new hotels of €4.4 million. Scandic was the hotel chain with “Europe’s most satisfied hotel guests”, according to the European Guest Satisfaction Index Study, published by JD Power and Associates.
Anders Ehrling, President and CEO of Scandic since autumn 2010, pointed to “a recovery in the economy leading to increased travel and a gradual improvement in occupancy rates across our market.” The company aims to open another 12 new hotels in 2011 and focus on growth – particularly in Norway and Finland.
“The increase in revenue per room has previously been driven chiefly by increased volumes, but in the second half of 2010 we saw rising room rates and a jump in activity levels in the conference and meeting segment of the Swedish market,” Ehrling said, describing Scandic as “living proof that you can be an efficient hotel operator with a progressive approach to sustainability.”