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In a press release on September 9, the company announced that it expected 30-35% occupancy in September, after achieving 42% occupancy in July and 34% in August.
Overall, for the third quarter, the company estimated an occupancy rate of 35 percent versus just over 75 percent in the same period last year.
The result now shows a 36% occupancy rate and a 60% drop in revenue compared to last year.
Revenues fell from around SEK 5.2 to 2.1 billion.
The accounts for the third quarter, which were released on Tuesday morning, also show that the company has received a total of SEK 371 million in state crisis aid.
Thanks to the strong cost cuts, the company was thus able to obtain a slightly positive pre-depreciation result (so-called Adjusted EBITDA) of SEK 90 million. That is 733 million weaker than in the same period last year.
So far this year, that is from January to the end of September, Scandic’s turnover has fallen by 57 percent from SEK 14.1 to 6.1 billion. Adjusted ebitda has fallen by almost SEK 2.8 billion from more than SEK 1.55 billion last year to minus SEK 1.22 billion this year.
The Scandic hotel chain had a 60 percent drop in revenue in the third quarter. This is Scandic Nidelven in Trondheim. (Photo: DN)
Put pressure on hotel tenants: lower rent payments
In a company statement, CEO Jens Mathiesen writes that “the crown crisis will have consequences for the hotel industry for a long time, and it will be several years before we return to pre-pandemic occupancy levels.” He also writes that the company is now intensifying negotiations with hotel owners for deals that represent what he calls “balanced risk sharing.”
“Some hotels, especially in large cities, today have a rent that exceeds the billing of hotels, which is not reasonable,” he writes, adding that “now we are intensifying negotiations with hotel tenants and therefore we will reduce rent payments until we have agreed new agreements. ‘
The publicly listed hotel real estate company Pandox, with Christian Ringnes and brothers Christian and Helene Sundt as the largest shareholders, owns several hotels that are rented from Scandic.
– I have understood so that Scandic will exit fixed leases and land on the model that we have had for many years between companies with agreements based on minimum rent billing, writes Anders Nissen, CEO of Pandox, in a text message to DN on Tuesday morning.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
