Third quarter in summary
Net sales increased by 11.1% to 3,974 MSEK (3,577) primarily due to higher RevPAR and more rooms in operation.
Adjusted EBITDA totaled 622 MSEK (547), corresponding to a margin of 15.7% (15.3).
An agreement was signed to acquire a 293-room hotel in central Frankfurt, which will open in early 2018.
Agreements were signed for two new hotels in Copenhagen, totaling 989 rooms, which will open in 2020 and 2021 respectively.
17 MSEK in capital gain from the sale of a hotel in Finland.
Earnings per share amounted to 3.65 SEK (4.22). Excluding currency effects related to the revaluation of loans and items affecting comparability, earnings per share amounted to 3.53 SEK (2.86).
The period in summary
Net sales increased by 12.7% to 10,839 MSEK (9,618). The increase was due to higher RevPAR, more rooms in operation and positive currency effects.
Adjusted EBITDA totaled 1,237 MSEK (1,056), corresponding to a margin of 11.4% (11.0).
Earnings per share amounted to 5.33 SEK (5.78). Excluding currency effects related to the revaluation of loans and items affecting comparability, earnings per share totaled 5.51 SEK (3.96).
Acquisition of Relstel’s hotel portfolio in Finland, that is expected to close by the end of 2017.
CEO’s comments in summary
I can affirm that we saw continued good growth during the third quarter. Net sales rose 11 percent, driven by growth in comparable units and continued development in our hotel portfolio. RevPAR for comparable units rose by 3.8 percent with a positive growth trend in Finland and Norway and a slightly lower increase in Sweden and Denmark.
During the third quarter, we have added three hotels to our pipeline. In July, we announced the takeover of a newly-renovated and centrally-located hotel in Frankfurt, our fourth hotel in Germany. In addition, we presented two new hotel projects in Copenhagen.
During my first months at Scandic, I visited more than 70 hotels and I am impressed by the quality of our portfolio. Scandic has a unique network and a strong distribution capacity. This, together with our proven strategy with variable leases and a high share of returning corporate customers, gives us good opportunities to continue growing faster than the Nordic market.
We will not, however, settle for the position we have today. In an increasingly dynamic travel industry, we need to respond quickly to changes and new opportunities. Scandic will strive for profitability that fully leverages the economies of scale we enjoy. This includes ensuring that we have effective support functions and that we work to optimize our hotel portfolio and offering.
For the fourth quarter, we expect sales to continue to grow, although at a slower pace than during the third quarter.
President & CEO
Third quarter in summary