First quarter in summary
- Net sales increased by 19.3% to 3,095 MSEK (2,594) due to higher RevPAR, more rooms in operation and positive currency effects.
- RevPAR LFL grew by 12.2% driven by higher occupancy and increased average room rates.
- The Easter holiday fell entirely in April which is why the quarter is not fully comparable with the first quarter 2016. Calendar effects are estimated to have had a positive impact on net sales- and RevPAR growth for comparable units of 7 percentage points.
- Adjusted EBITDA increased to 154 MSEK (40), corresponding to a margin of 5.0% (1.5%). The margin was impacted positively by the fact that the 2017 Easter holiday fell in April.
- Earnings per share increased to -0.35 SEK (-0.98).
- Scandic signed agreement with Pandox and Eiendomsspar to take over the operations of eight hotels in Norway, Sweden and Denmark. The agreement includes Grand Hotel in Oslo, which will become a signature hotel.
- Scandic signed an agreement to operate a new hotel with 148 rooms at Helsinki Airport. The hotel will open in 2018.
- Scandic signed an agreement to operate a new hotel in central Gothenburg with 362 rooms that will be completed at the end of 2020.
- Even Frydenberg will take over as President & CEO from July 31, 2017.
CEO’s comments in summary
Scandic got off to a good start this year with strong sales development and improved earnings. RevPAR LFL has developed positively in all markets and additionally, the new hotel openings in 2016 have contributed to growth. Our reported sales growth of 19 percent was affected by the fact that Easter fell during April this year, but it was still double-digit after adjusting for the Easter effect.
The Nordic hotel market is continuing to develop positively. It is gratifying that we also now see breadth in market growth with encouraging development in the Norwegian market as well.
During the quarter, ten hotels with a total of 2,218 rooms were added to our pipeline. Scandic now has a strong project portfolio and a balance sheet that provides good financial flexibility for continued expansion.
Our assessment is that market conditions will remain favorable in 2017.
President & CEO
Report presentation May 10, 2017 at 09.00 CET
A presentation of the report will take place at 09.00 CET today, May 10. Scandic’s President & CEO Frank Fiskers will present the report together with CFO Jan Johansson in a webcast and telephone conference.
Details for participation by telephone: SE+46 8 5664 2509 or UK +44 20 3008 9808
Please call in 5 minutes before the start.
The presentation will be held in English.
You can view the webcast at www.scandichotelsgroup.com. The interim report and presentation slides will also be available on the website.
Scandic Hotels Group (publ) is required to publish this information in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication May 10, 2017 at 07:30 CET.