40 hotels. 1.6 billion investment. 3 years. Those are the key figures behind the joint Scandic/Pandox project to upgrade, renovate and develop the major part of the two partners’ joint hotel portfolio. Today, this megaproject has reached the finishing line and the summing up is simple: A huge success.
Code name Shark
In 2012, Scandic and Pandox made a unique agreement by investing together SEK 1.6 billion in renovating and developing 40 existing hotels. The project included mainly hotels in motorway locations, but also large hotels located in key destinations. The common denominator was that these hotels were step-by-step losing market shares and needed a boost to become truly attractive again. The project was scheduled to run during 2013-2015.
To renovate one hotel is in general a complex assignment. To renovate 40 hotels at the same time is a true and unequalled challenge. Bearing in mind that the hotels cannot be closed, but must conduct business as usual while the work is being carried out. This gave name to the project: Shark, as risky, daring, respectful, big and a bit frightening.
A well-oiled project organization
The scope of the assignment called for an unconventional approach. The Shark project was therefore handled by an independent project organization. Martin Creydt, Chief Operating Officer of Scandic, was chairing the team.
“I think this approach was very smart and it constituted the basis for the successful execution. It brought a sharp focus on the job to be done. Everyone was 100 percent committed. And we managed to achieve lots of positive synergies through large joint sourcing. We actually saved so much on the original budget that we could expand the project, all for the benefit of our hotel guests”, says Martin Creydt. “The way we’ve cooperated with Pandox has also given us both a better understanding of our different ways of working and thereby strengthened our relations. It has really created a ‘win-win’ partnership”.
In the beginning of this year, the last steps were taken to bring the project to completion. 40 hotels and 4,000 rooms have been refurbished and redesigned according to a new concept. The informal and relaxed atmosphere has been strengthened by creating more social meeting places. The new hotel concept is characterized by flexibility and innovative solutions that cater for new family constellations, travel patterns and trends. Including everything from the car park, reception, lobby and restaurant to the hotel rooms. All for the guests’ needs and satisfaction.
Martin Creydt: “Our figures speak a clear language. Revenues have increased. We’re attracting more guests and they are spending more at each stay. Actually, all graphs in relation to the Shark project are pointing in the right direction from our point of view.
It’s all about creating value
“This is one of the biggest joint investment agreements ever made between a hotel operator and a property owner in the Nordic countries. The project creates value and is strategically important for both Scandic and for Pandox,” says Anders Nissen, Chief Executive Officer of Pandox.