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Win-win investments Scandic Hamburg Emporio, Germany

Win-win investments

Win-win investments Scandic Hamburg Emporio, Germany

Win-win investments

Scandic’s model for cooperation with landlords combines mutual trust and the ambition to create win-win solutions. Here are three recent examples of how this works in practice.

A new floor in Hamburg

Hamburg is enjoying above-average growth in tourism and other areas compared to Germany’s other most popular cities. With the Hafen City development and the new Elbe Philharmonic Hall in the pipeline this trend is anticipated to continue. In view of the steadily increasing number of tourists and corporate guests Scandic and Union Investment have decided to extend the capacity of the Scandic Emporio hotel. The 8th floor will be converted from office space to hotel rooms. 16 new hotel rooms and a breakfast area. Everything will be in full operation in the beginning of next year.

A spokesman for Union Investment says: “For us, successful asset management is about maximizing the asset value by optimizing hotel operations and balancing the interests of all partners involved. This approach underscored the mutual decision for the extension of the hotel. Our goal was both to increase the hotel market value and to lay the foundation for the future growth of the hotel performance. This strengthens the existing cooperation and partnership.”

Extending a long partnership

In the autumn of 2014, Scandic and the landlord for Scandic Frimurarhotellet in Linköping, Sweden agreed to extend the hotel’s capacity by some 50 new rooms and add new conference facilities. This is a natural step in a long-lasting relationship.

“For many years, we as landlords have had a smooth cooperation with Scandic as hotel operator. This is manifested in the work we are presently conducting to expand the hotel. Scandic’s deep know-how in technical and functional issues – both from their local and central management – is transferred to us fast and effectively. Together, we are creating a comfortable, effective and for both parties profitable extension that will be classified according to the highest environmental standards”, says Lars Brunskog, project manager and responsible architect at Frimurarsamhället. Work is in progress according to plan and the new facilities will be ready in the beginning of 2017.

A stronger connection

Midstar is since 2015 the landlord for Scandic in Karlskrona. By buying nine properties from Pandox, Midstar has extended its partnership with Scandic since five of these properties are hosting Scandic hotels. At Scandic we are looking forward to a long and fruitful partnership. This point of view is shared with Midstar CEO Peter Tengström:

”We are extremely happy to now take our partnership with Scandic one step forward by the acquisition of these five Scandic hotels from Pandox. We have an extremely positive view of Scandic and consider them a proactive and professional partner and are looking forward to further develop the six hotels we now have shared interest in. As property owner, our ambition is to be active in the process of creating better hotels by renovating, developing and refining them together with our hotel operators. Our ambition is to build a substantial hotel property company in the Nordics as well as in Germany and the UK. We hope that a continued cooperation with Scandic will be beneficial for us in this ambition.”