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Scandic strengthens its position in the Nordic region

Scandic strengthens its position in the Nordic region

Scandic’s total revenue increased by 14% and revenue per room by 9% over the full year 2010. Remaining profitable, the company has strengthened its market position, not least by opening 11 new hotels in 2010. Scandic also came out as the hotel chain with ‘Europe’s most satisfied hotel guests’, according to the European Guest Satisfaction Index Study, published by JD Power and Associates.“With Scandic ending 2010 on such a strong note, I am cautiously optimistic about the rest of 2011,” says Anders Ehrling, President and CEO of Scandic since autumn 2010.

“Scandic has advanced its position in the key Nordic market, with a recovery in the economy leading to increased travel and a gradual improvement in occupancy rates across our market. We’re opening another 12 new hotels in 2011 and remain focused on growth, not least 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. I am proud to say that Scandic is living proof that you can be an efficient hotel operator with a progressive approach to sustainability – and achieve even greater profitability”, says Anders Ehrling.

  

Results for the period January – December 2010

· Revenue increased 14.1% to EUR 754.3 (661.0) million. For comparable hotels and at a fixed exchange rate, revenue rose by 3.6%.
· Revenue per available room (RevPAR) was up 8.8%. For comparable hotels and at a fixed exchange rate, RevPAR rose by 3.1%.
· Net operating profit (EBITDA) came in at EUR 61.8 (61,6) million, giving a profit margin of 8.2% (9.3%). The financial results include opening costs for new hotels of EUR 4.4 million.
· Over the year, 11 new hotels opened, with a total of 2,123 rooms, and five new hotel projects were launched, involving 687 rooms in total.
· Demand for hotel services improved in all of Scandic’s markets.
· In 2010, Scandic came out top for most satisfied hotel guests, according to the European Guest Satisfaction Index Study, published by JD Power and Associates.

Group results January – December 2010 for Scandic Hotels Holding AB

Full 2010     Full 2009 H2 2010 H2 2009
Revenue, EUR millions 754.3 661.0 408.3 343.0
Gross profit, EUR millions 279.0 246.2 159.8 132.8
Net operating profit (EBITDA), EUR millions 61.8 61.6 45.4 38.4
EBITDA margin, % 8.2 9.3 11.1 11.2
Revenue per available room (RevPAR), EUR 57.7 53.1 61.2 54.6
Occupancy, % 62.1 60.8 65.7 63.6

No. of hotels in operation (31 Dec) 1) 147 138
No. of rooms available (31 Dec) 1) 27,204 25,070
No. of employees (full-time equivalents) 2) 6,902 6,496

Unsorted waste, kg per guest night 3) 0.52 0.57
Energy consumption, kWh per guest night 3) 47.3 46.8
Water consumption, l per guest night 3) 216 220
Fossil carbon dioxide emissions, kg per guest night 3) 2.6 2.5

1) Includes hotels with leasing, management and franchise agreements
2) Calculated as total no. of hours worked/annual working hours
3) Based on hotels that have been operational for the full yearFor more information, please contact:
Anders Ehrling, President & CEO, Scandic, tel: +46 709 73 52 03
Gunilla Rudebjer, CFO, Scandic, tel: +46 709 73 51 64
Christine Kullgren, Head of Corporate Communications, Scandic, tel: +46 709 73 56 34There are hotels that are more exclusive, hotels that are cheaper and hotels that are trendier – but there is no hotel as smart as Scandic. Smart, because you get a more conscious and inspiring hotel experience on so many levels. Visit scandichotels.com presenting more than 160 hotels in 9 countries and many exciting offers.