Scandic Hotels improved profits 2012
Scandic Hotels increased revenues and improved its operating profit in 2012. Over the year, Scandic opened six new hotels and launched an extensive refurbishment programme for its roadside hotels. The Group also upped its focus on its restaurant business, not least by introducing ‘Scandic Classics’ to the menu, which helped to drive up restaurant sales. At the same time, Scandic reduced its impact on the climate and the environment.
Revenues for Scandic Hotels rose by 9.6 percent in 2012 to EUR 923.0 (842.6) million. Despite investments in new hotels affecting the operating margin, it still increased from 8.7 to 9.1 percent, with operating profit (EBITDA) also up to EUR 83.7 (72.9) million. Revenue per available room (RevPAR) also rose by 2.8 percent over the year.
Scandic currently operates 156 hotels in eight countries. 2012 saw the opening of six new hotels with a total of 1,400 rooms. Additional hotel projects amounting to 400 rooms also began in 2012.
“Practically all our new city hotels have turned a profit in their first year. We’ve opened no fewer than six new hotels: Scandic Aarhus City in Denmark, Scandic Tampere Station and Scandic Paasi in Finland, Scandic Fornebu in Norway and Hamburg Emporio in Germany. We’ve also taken over an Ibis hotel in Sundsvall,” explains Scandic CEO Anders Ehrling.
Scandic has begun refurbishing many of its roadside hotels. Until 2014 Scandic will, in cooperation with the property owner Pandox, invest EUR 185 million in around 40 hotels. The purpose of this work is to improve the overall hotel experience and to meet the needs and travel habits of future guests.
Scandic has increased the focus on its restaurant business. ‘Scandic Classics’ was a new feature introduced in 2012 – four dishes that are served at every hotel in the Nordic region. The combination of popular dishes, high quality ingredients and choice at excellent prices is intended to also attract guests who are not hotel residents. Sales in the Food & Beverage business rose by 9.7 percent in 2012, compared with the previous year.
Scandic’s longstanding investment in environmental and climate measures continued to move in the right direction in 2012. Scandic cut its unsorted waste, energy consumption, water consumption and fossil carbon dioxide emissions per guest night. Accessibility issues are also close to Scandic’s heart. Last autumn, the UN praised Scandic’s commitment to ensuring that everyone – including people with various kinds of disability – enjoys the same standards and the same rights.
For more extensive information on Scandic 2012, see the attached pdf file or go to scandichotels.com
Group results January – December 2012 for Scandic Hotels Holding AB
|Revenue growth, %||9.6%||11.7%||8.9%||7.9%|
|Revenue growth comparable hotels at constant currencies, %||1.0%||3.8%||-0.9%||2.8%|
|Gross profit, MEUR||356.4||317.3||193.0||173.2|
|Operating profit (EBITDA), MEUR||83.7||72.9||51.0||47.9|
|EBITDAR margin, %||33.2||32.7||34.8||34.8|
|EBITDA margin, %||9.1||8.7||10.6||10.9|
|Revenue per available room (RevPAR), EUR||63.7||62.0||64.6||63.2|
|Average room rate (ARR), EUR||104.6||99.6||103.6||97.5|
|No. of hotels in operation (31 Dec) 1||156||153|
|No. of rooms available (31 Dec) 1||29,849||28,875|
|No. of employees (full-time equivalents) 2||7,536||7,264|
|Unsorted waste, kg per guest night 3||0.50||0.52|
|Energy consumption, kWh per guest night 3||45.9||48.3|
|Water consumption, l per guest night 3||201.9||216.0|
|Fossil carbon dioxide emissions, kg per guest night 3||1.9||2.0|
|1) Includes hotels with leasing, management and franchise agreements
2) Calculated as total no. of hours worked/annual working hours
3) Based on hotels that have been operational for the full year
The net operating profit (EBITDA) and net operating profit before rent (EBITDAR) include opening costs for new hotels of EUR 7.2 (7.4) million.
|Growth in RevPAR and revenues 2012 compared with 2011|
|Growth 2012 compared with 2011||(EUR)||(%)||(MEUR)||(%)|
|Exchange rate effects||1.6||2.5%||22.2||2.6%|
For further information, please contact:
Anders Ehrling, CEO Scandic, tel: +46 709 73 52 03
Gunilla Rudebjer, CFO, Scandic, tel: +46 709 73 51 64
Margareta Thorgren, VP Group Communication, Scandic, tel: +46 721 70 92 53