Scandic enters another long-term strategic agreement with Pandox
– renovating and prolonging leases for 19 hotels in the Nordics
Scandic Hotels, the leading hotel company in the Nordic countries, and the property company Pandox have agreed to prolong the leases for 19 hotels in the Nordic region and to start a renovation program at the hotels. The investment amounts to 470 MSEK over a three-year period that will be divided equally between the parties.
Scandic and Pandox have agreed to extend the leases for 19 hotels in the Nordic countries, including eight in Sweden, six in Finland, three in Denmark and two in Norway with the majority of the lease contracts expiring between 2017-2020. In total, 3,437 rooms are included, of which the renovation affects about 1,600 hotel rooms and bathrooms as well as extensive meeting and restaurant spaces. The framework of the agreement and investment also includes extensions that will add 73 new hotel rooms at three different hotels.
- Given the good results we’ve enjoyed from our previous joint program, I am very pleased to once again have signed a long-term agreement that secures and also increases the competitiveness and earning potential of these hotels going forward, says Frank Fiskers, President & CEO of Scandic Hotels Group.
Implementation will follow the powerful model of cooperation that Scandic and Pandox established during the previous successful renovation project, which was called Shark 1.
This project included the prolongation, renovation and development of 40 hotels in the Nordic region with a joint investment of approximately SEK 1.6 billion.
Scandic’s costs for the upcoming renovation program, which is called Shark 2, fit within Scandic's annual investment budget, the total of which corresponds to approximately 3-4 percent of the Group’s annual net sales.
Scandic Hotels Group (publ) is required to publish this information under the Swedish Securities Market Act and/or Financial Instruments Trading Act. The information was submitted for publication June 30, 2016 at 08:00 CET.
About Scandic Hotels Group
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 1.7 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