Scandic Hotels, the leading hotel company in the Nordic region, has signed an agreement with property owners Pandox and Eiendomsspar to take over the operation of eight hotels in Norway, Sweden and Denmark. The agreement entails greater cooperation between the parties and a strengthened position for Scandic Hotels in the Nordic markets.
The agreement covers a total of 1,708 rooms of which 1,136 are in Norway, 357 in Stockholm and 215 in Copenhagen. Seven of the hotels are owned by Pandox and one is owned by Eiendomsspar. Pandox operates all of the hotels. The parties have agreed on long-term variable revenue-based lease agreements for the hotels. Scandic Hotels and Eiendomsspar/Rica Eiendom have also agreed to renovate and extend the existing lease for Scandic Holmenkollen Park Hotel in Oslo.
Oslo’s leading hotel, Grand Hotel, which dates from the late 19th century, is included in the agreement. In the last 18 months, the hotel has undergone an extensive renovation. Grand Hotel, which is owned by Eiendomsspar, will become Scandic’s sixth signature hotel in the Nordic countries. Signature hotels “by Scandic” have a unique character, design and offering that set the collection apart. Haymarket by Scandic and Grand Central by Scandic in Stockholm are two examples of signature hotels that were launched last year.
The Lillehammer Hotell, Meetingpoint Hafjell, Thon Hotel Fagernes and Thon Hotel Sørlandet in Norway are also included as well as the Best Western Plus Prince Philip and The Hub Hotel in Stockholm and First Hotel Copenhagen in Copenhagen. All of the hotels have a strong position within the meeting, business or leisure segments in their respective markets. They will be rebranded as soon as possible to the Scandic brand.
The transfer will be carried out without consideration and all of the hotels will contribute positively to Scandic Hotels’ EBITDA already from 2017. The hotels will be renovated and the property owners will be responsible for the majority of the remaining investments until Scandic takes over operation.
– We are now fortifying our position as the leading hotel company in the Nordic region and at the same time deepening our successful long-term partnership with Pandox. I look forward to us operating and developing these hotels further and to making Grand Hotel in Oslo into a signature hotel “by Scandic”, says Frank Fiskers, President & CEO of Scandic Hotels Group.
– This agreement is in line with Pandox’ strategy to be active across the entire value chain and to rent hotel properties to strong operators following takeovers and rebranding. Through this agreement with Scandic, our biggest partner, we are strengthening our rental portfolio through the addition of seven competitive leases with a skilled operator and further increasing our strategic scope for maneuverability, says Anders Nissen, CEO of Pandox.
The transfer of the hotels in Norway is subject to approval by the Norwegian competition authorities. According to the plan, Scandic Hotels will take over the operation of the hotels in stages during the second quarter of 2017.
Invitation to press conference
Grand Hotel Olso’s owner, Eiendomsspar, is inviting journalists and investors to a press conference that will be held at Grand Hotel Oslo on January 18 at 9:15.
Christian Ringnes, Chairman of the Board of Pandox and CEO of Eiendomsspar together with Helge Krogsbøl, Vice President Operations Scandinavia at Pandox, Frank Fiskers, President & CEO of Scandic and Svein Arild Steen-Mevold, Head of Scandic Norway will present the cooperation in more detail and answer questions.
Please RSVP Kristian Røise Dahl at +47 958 41 992 or firstname.lastname@example.org
Scandic Hotels Group (publ) is required to publish this information in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was submitted for publication on January 18, 2017 at 8:00 CET.
For more information, please contact:
Elin Westin, Director of Communications, Scandic Hotels Group
Phone: +46 702 77 75 26
Henrik Vikström, Interim VP Investor Relations
Phone: +46 760 09 05 47