Scandic’s interim report Q1 2022
First quarter in summary
- Net sales rose by 194.0 percent to 2,733 MSEK (930).
- Average occupancy rate was 39.1 percent compared with 17.5 percent during the first quarter last year.
- Occupancy was impacted negatively by extensive pandemic restrictions in Scandic’s markets during January and February.
- The market improved toward the end of the quarter and in March, Scandic’s occupancy rate rose to 53.5 percent.
- The average room rate (ARR) was 1,011 MSEK (841) during the quarter and average revenue per available room (RevPAR) was SEK 395 (147).
- Adjusted EBITDA totaled -237 MSEK (-775). The results were positively impacted by state aid of 63 MSEK (247) that Scandic received during the first quarter of 2022
- Excluding IFRS 16, earnings per share totaled SEK -2.73 (-4.90).
- During the quarter, Scandic opened the new 160-room Scandic Örebro Central in Örebro, Sweden.
Events after the reporting date
- Prior to the 2022 Annual General Meeting, Scandic’s Nomination Committee proposed Gunilla Rudebjer as a new Board member and announced that Ingalill Berglund had declined re-election.
- In April, Scandic opened the new 230-room Scandic Kiruna in Sweden.
CEO’s comments in summary
The first quarter of 2022 ended on a positive note after a weak start to the year. During the first two months, demand was limited by the restrictions introduced at the end of 2021. As these were gradually lifted from the beginning of February, as expected, there was a clear improvement in demand and our occupancy rate rose sharply, from 25 percent in January to 53.5 percent in March.
Market development has remained positive at the beginning of the second quarter. Occupancy in April is expected to be at the same level as in March despite the negative effect of Easter falling in April. Bookings for meetings are strong for the coming months and we expect that the hotel market will benefit from significantly higher activity related to events this summer compared with the past two years.
The terrible war that has broken out in Ukraine and the uncertain geopolitical situation can lead to consequences for the global economy and we are following developments very closely. So far, however, it has not had a significant effect on hotel demand in the Nordic region.
Before the summer, we will strengthen our offering by opening a number of attractive new hotels. We recently opened Scandic Örebro Central and Scandic Kiruna, and during the second quarter, we will open two more Swedish hotels in Gothenburg and Helsingborg. In addition, we will open two hotels in central Copenhagen during the quarter at the same time as we will to reopen Scandic Holmenkollen outside of Oslo after a major renovation and extension. It is, of course, gratifying that we will be launching these new hotels during a period with good demand for hotels.
As we’ve said earlier, Scandic has a clear ambition to further strengthen the resilience of its business model to ensure higher and more stable earnings over time. This is happening in a number of areas. We will ensure that we maintain the efficiencies that have been implemented in recent years, especially in central functions, while continuing to work actively to further improve our hotel portfolio. We also see potential to increase space efficiency at our hotels and to continue taking steps to improve profitability in our restaurant operations.
Profitability does not derive solely from lower costs and greater efficiency. Average room rates in the Nordic hotel market have now returned to about the same level as before the pandemic, and we now also need to ensure that we fully compensate for underlying cost inflation.
We look forward with confidence to an exciting period when we will strengthen our offering with a number of new hotels in an improved hotel market.
President & CEO
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 below, at 07.30 CET on April 27, 2022.
For more information, please contact:
Henrik Vikström, Director Investor Relations, Scandic Hotels Group
Phone: +46 709 52 80 06
Report presentation April 27, 2022 at 09.00 CET
A presentation of the report will take place at 09.00 CET today, April 27. Scandic’s President & CEO Jens Mathiesen will present the report together with CFO Åsa Wirén in a webcast and telephone conference.
Details for participation by telephone: Sweden: +46 8 505 583 53 , UK: +44 3333 009 262. 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.
Please join us to listen and ask questions.
About Scandic Hotels Group
Scandic is the largest hotel company in the Nordic countries with more than 280 hotels, in operation and under development, in more than 130 destinations. The company is the leader when it comes to integrating sustainability in all operations and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and the company is one of the most attractive employers in the region. Scandic Hotels is listed on Nasdaq Stockholm.