Scandic and Stena Line announce co-operation

Scandic and Stena Line announce co-operation Stena Line and Scandic Hotels have announced their intentions to co-operate with one another, with effect from 1 January 1999. The practical implications of the co-operation are firstly that Scandic will assume responsibility for the operational management of Stena Line's three Danish hotels, and secondly a co-operation between the two companies in the areas of marketing and sales. At the turn of the year, Scandic will take over the responsibility for managing Stena Line's three hotels in Denmark: Scandic/Stena Line Hotel Fredrikshavn, with 215 rooms, and Stena Line Hotel Hoffmans, with 74 rooms - both located in Fredrikshavn - as well as Scandic/Stena Line Hotel Grenaa in Grenå, with 100 rooms. As regards the hotel business, the co-operation will be formalized by a management contract, which means that Stena Line will continue to own the properties and Scandic will manage the hotel operations on behalf of a principal. "This co-operation with Scandic presents Stena Line with a number of significant advantages," says Bengt Håkansson, Manager for Stena Line's Danish traffic. "Scandic's experience and knowledge of the industry will be essential for meeting the existing and future demands of travellers. Scandic's extensive chain of hotels and its operational systems, sales and marketing programmes will strengthen the competitive edge of Stena Line's hotels, and this will be an essential asset for securing future development and profitability," continues Bengt Håkansson. "Stena Line's three hotels provide an ideal complement to the Scandic chain," says Hans Frank, Business Area Manager for Scandic Hotels Denmark. "Our portfolio will expanded with hotels situated in important strategic hubs for Nordic ferry traffic and will accordingly provide the market with a Danish hotel chain well suited to cater for the significant number of ferry passengers travelling between the Nordic countries. In Stena Line, we also gain a valuable partner for development of the Nordic business and leisure travel." Both Stena Line and Scandic operate in the travel and tourism industry, and the one company's customer base provides a mirror image of the other's. Stena Line's customers are predominantly leisure travellers, and the company has its peak period during the summer months, Christmas and New Year, other bank holidays, weekends and school holidays. Scandic's customer base, by contrast, consists largely of business travellers and, as a result, the company has a high capacity utilization on weekdays. Stena Line's goal is to increase the number of business travellers and to this end, the company has recently offered an extended service to this customer group, an example being the marketing concept tailored for business travellers using Stena Carisma, the high-speed ferry. Scandic is looking to increase occupancy levels during the weekends, bank holidays and other traditional holiday periods. "Co-operation in the areas of marketing and sales will help both companies reach their respective goals for increasing travel and occupancy levels," agree Bengt Håkansson and Hans Frank. For further information, please contact: Hans Frank, Business Area Manager, Scandic Hotels Denmark, @ +45 (0)33 48 04 50 Gunnar Brandberg, Vice President, Marketing & Investor Relations, @ +46 (0)8 715 352 12 Bengt Håkansson, Manager for Stena Line's Danish traffic, @ +46 (0)31 85 83 14, or +46 (0)705 88 83 14. Scandic Hotels AB is the largest hotel company in the Nordic Region, with 122 hotels in 9 countries. Scandic's strategy is to be a dedicated hotel operator. Its business mission is "to offer many people the highest value for money when staying in its hotels, during work and leisure." The Stena Line Group is an international transport and travel service company, and one of the world's largest ferry companies. The consolidated route network comprises 12 strategically located ferry routes in Scandinavia and around the UK. Almost 17 million passengers travel, and about 3 million private cars and 1 million freight units, i.e. trucks, trailers, containers and railway carriages are annually transported on Stena Line's ferries. [REMOVED GRAPHICS] Scandic Hotels AB (publ) Box 6197, SE-102 33 Stockholm Tel: +46 (0)8 517 350 00, Fax: +46 (0)8 517 352 80 E-mail: info@scandic-hotels.com, Internet: www.scandic-hotels.com Org. no.: 556299-1009 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/12/09/19981209BIT00180/bit0001.pdf http://www.bit.se/bitonline/1998/12/09/19981209BIT00180/bit0002.doc