Scandic Results Q1&2, 2009
Maintains its strong position in tough market
- Revenue amounted to EUR 318.0 (383.2) million. For comparable hotels and at a fixed exchange rate, revenue fell by 12%.
- For comparable hotels and at a fixed exchange rate, revenue per available room (RevPAR) fell by 12%.
- Operating profit (EBITDA) came in at EUR 23.2 (55.8) million, giving a profit margin of 7.3% (14.6%)
- Over the year, four new hotels opened, with a total of 518 rooms, and two new hotel projects were launched, involving 491 rooms in total.
"The global economic crisis has had a dramatic impact on business travel and 2009 has been one of the weakest years ever in the hotel industry. In this tough market, Scandic has maintained its strong market position and our business model, geographic spread and customer mix have helped us to manage the economic downturn better than the market as a whole. Scandic’s positioning in the mid-market segment, strong brand and attractive loyalty programme have enabled us to capture market share in the majority of our markets."
"Scandic initiated cost-cutting measures already back in autumn 2008, when we saw the market starting to weaken. These measures have now been fully implemented and are expected to generate savings of EUR 32 million across the whole of 2009. This has enabled us to compensate for some of the loss of revenue in 2009."
"Scandic’s sustainability work continues at full pace. Scandic won the Grand Travel Awards prize in the class "Environmental Initiative of the Year" for being the first major hotel chain to replace bottled water with water dispensed on site at all our hotels. During 2009 we are seeing an increase in energy and water consumption per guest night compared with the previous year, due to reduced occupancy."
"Our expansion plans remain on track and we are constantly considering interesting projects that will strengthen Scandic in our Nordic home markets and build up a presence in the European market. During the year, we have taken over two hotels in Copenhagen, significantly strengthening our position in this key destination. Scandic has also taken over the operation of two hotels in Sweden. We now have 11 new hotels, with 2,844 rooms in the pipeline, due to open during 2010-2011."
"The market remains difficult to predict. There are signs that the downturn has eased and that the economy has started to stabilise, but at a low level for the moment. There are indications in the hotel market that the fall in occupancy has levelled off, while room prices continue to come under pressure. The cost adjustments carried out, coupled with a focus on strengthening Scandic’s concept and hotel portfolio, makes us well equipped to get through the current tough times and to seize the opportunities that arise when the market turns," explains Frank Fiskers, President and CEO of Scandic.
Phone: +46 (0)709-73 52 03
About Scandic Hotels
Scandic is the largest hotel company in the Nordic region with 14,400 team members and a network of close to 230 hotels with about 44,000 hotel rooms in operation and under development. Scandic Friends is the biggest loyalty program in the Nordic hotel sector with 1.9 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.