Third quarter in summary
- Net sales increased by 11.1% to 3,974 MSEK (3,577) primarily due to higher RevPAR and more rooms in operation.
- Adjusted EBITDA totaled 622 MSEK (547), corresponding to a margin of 15.7% (15.3).
- An agreement was signed to acquire a 293-room hotel in central Frankfurt, which will open in early 2018.
- Agreements were signed for two new hotels in Copenhagen, totaling 989 rooms, which will open in 2020 and 2021 respectively.
- 17 MSEK in capital gain from the sale of a hotel in Finland.
- Earnings per share amounted to 3.65 SEK (4.22). Excluding currency effects related to the revaluation of loans and items affecting comparability, earnings per share amounted to 3.53 SEK (2.86).
The period in summary
- Net sales increased by 12.7% to 10,839 MSEK (9,618). The increase was due to higher RevPAR, more rooms in operation and positive currency effects.
- Adjusted EBITDA totaled 1,237 MSEK (1,056), corresponding to a margin of 11.4% (11.0).
- Earnings per share amounted to 5.33 SEK (5.78). Excluding currency effects related to the revaluation of loans and items affecting comparability, earnings per share totaled 5.51 SEK (3.96).
- Acquisition of Relstel’s hotel portfolio in Finland, that is expected to close by the end of 2017.
CEO’s comments in summary
I can affirm that we saw continued good growth during the third quarter. Net sales rose 11 percent, driven by growth in comparable units and continued development in our hotel portfolio. RevPAR for comparable units rose by 3.8 percent with a positive growth trend in Finland and Norway and a slightly lower increase in Sweden and Denmark.
During the third quarter, we have added three hotels to our pipeline. In July, we announced the takeover of a newly-renovated and centrally-located hotel in Frankfurt, our fourth hotel in Germany. In addition, we presented two new hotel projects in Copenhagen.
During my first months at Scandic, I visited more than 70 hotels and I am impressed by the quality of our portfolio. Scandic has a unique network and a strong distribution capacity. This, together with our proven strategy with variable leases and a high share of returning corporate customers, gives us good opportunities to continue growing faster than the Nordic market.
We will not, however, settle for the position we have today. In an increasingly dynamic travel industry, we need to respond quickly to changes and new opportunities. Scandic will strive for profitability that fully leverages the economies of scale we enjoy. This includes ensuring that we have effective support functions and that we work to optimize our hotel portfolio and offering.
For the fourth quarter, we expect sales to continue to grow, although at a slower pace than during the third quarter.
President & CEO
Report presentation October 26, 2017 at 09.00 CET
A presentation of the report will take place at 09.00 CET today, October 26. Scandic’s President & CEO Even Frydenberg will present the report together with CFO Jan Johansson in a webcast and telephone conference.
Details for participation by telephone: +46 8 5664 2665, +44 20 3008 9813
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.
For further information, please contact:
Henrik Vikström, Director Investor Relations
Telephone: +46 70 952 80 06
This information is information that Scandic Hotels Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 CET on October 26.
Scandic is the largest hotel company in the Nordic region with 15,000 team members and a network of close to 230 hotels with about 45,000 hotel rooms in operation and under development. Scandic Friends is the biggest loyalty program in the Nordic hotel sector with 2 million members. Corporate responsibility has always been a part of Scandic’s DNA and Scandic has been named Best Hotel Brand in the Nordic countries (BDRC). Since December 2, 2015, Scandic has been listed on Nasdaq Stockholm. www.scandichotelsgroup.com