Scandic Hotels finally completes purchase of Restel and Cumulus
Scandic Hotels has completed the acquisition of Restel’s hotel operations in Finland, a purchase it initially announced on June 21 last year for €114.5 million.
The transaction was finally approved by the Finnish Competition and Consumer Authority in December, subject to the divestment of one hotel in Lahti, one in Pori and one in Kuopio.
Additionally, Scandic has committed not to participate in certain announced hotel projects in Lappeenranta and Vantaa.
Restel’s hotel business had sales of €203.4 million in 2016 and an adjusted EBITDA of €13.7 million.
Scandic says it sees “good opportunities for sales growth and margin improvement in the acquired hotel portfolio in the coming years”.
There is potential for increasing revenue through rebranding the hotels under the Scandic name and expanding Scandic’s offering in the Finnish market, the group adds. Costs are also expected to decrease through coordinated administration and procurement.
Cumulus to Scandic
Scandic has 230 hotels in operation and under development, 28 of which are in Finland, managed under Finland Scandic Hotels Group.
Restel’s portfolio includes about 7,600 rooms in 43 hotels, so with the acquisition Scandic will have a nationwide hotel coverage in Finland and becomes the country’s biggest hotel operator.
Seven of Restel’s 43 hotels are operated under franchise agreements with Intercontinental Hotels Group. Most of the hotels are operated under the Cumulus brand. Over time, they will be converted into Scandic hotels. For four of the hotels, the seller will remain the landlord.