During 2013 – 2015, Scandic and Pandox co-operated in a unique project named Shark. 40 existing Scandic hotels were renovated and developed through a joint investment of SEK 1.6 billion. This boost has made the hotels truly attractive and popular again. In the wake of this successful approach, the partners have agreed to give birth to a new similar project amounting to 470 MSEK.
Launching shark 2
During the summer, Scandic and Pandox announced an agreement to prolong the leases of 19 hotels in the Nordic countries. The package includes eight hotels in Sweden, six in Finland, three in Denmark and two in Norway. The new lease contracts have a duration of up to 15 years. In addition, the agreement also includes a substantial renovation program of the hotels. This investment amounts to 470 MSEK over a three-year period and will be divided equally between the parties. The name of this new scheme is Shark 2 as it is a sequel to the earlier Shark project that was brought to a close in 2015. The scope of the new Shark 2 is not of the same size as its predecessor, but figures are anyway quite impressive. In total, 3,437 rooms are included, of which the renovation affects roughly half of them as well as bathrooms and extensive meeting and restaurant spaces. The investment also includes an important addition of 73 new hotel rooms in three different hotels.
Never change a winning team!
The implementation of this new strategic and longterm investment will follow the unique and powerful model of co-operation that Scandic and Pandox established during Shark 1.
“We created an independent project organization to realize Shark 1. This approach was very smart and constituted the basis for the successful execution. It brought a sharp focus on the job to be done and everyone was 100 percent committed. Given the good results we enjoyed from this effort, we will use the same working model for Shark 2”, says Jesper Engman, Vice President of Business Development at Scandic.
Adds Erik Hvesser, Vice President and Area Manager Sweden & Finland at Pandox: “Scandic Hotels have successfully operated the hotels over a long period of time and we are pleased to be able to present an extension of the lease agreements. With renewed leases and joint investments we are further strengthening Scandic’s and Pandox’s strategic partnership and joint product offering in the Nordics”.