Brief: Scandic Hotels Group Comments On Market Situation And Ongoing Rent Negotiations

Scandic Hotels AB

15/01/2021 07:29

Jan 15 (Reuters) - Scandic Hotels Group AB  SHOTE.ST :
    * SCANDIC COMMENTS ON MARKET SITUATION AND ONGOING RENT
NEGOTIATIONS
    * IN DECEMBER, SCANDIC'S AVERAGE OCCUPANCY RATE WAS
APPROXIMATELY
15 PERCENT WITH CONTINUED WEAK DEMAND IN ALL MARKETS
    * ONGOING RENT NEGOTIATIONS HAVE THUS FAR LED TO AGREEMENTS
FOR
RENT REDUCTIONS AND OFFERS FROM LANDLORDS TOTALING APPROXIMATELY
850 MSEK.
    * BASED ON CURRENT BOOKING TRENDS, AVERAGE OCCUPANCY IS
EXPECTED
TO BE ABOUT 15 PERCENT IN JANUARY.
    * SCANDIC'S AVAILABLE LIQUIDITY AT YEAR-END AMOUNTED TO
APPROXIMATELY 1.9 BILLION SEK.
    * ALTHOUGH SCANDIC ANTICIPATES A GRADUAL INCREASE DURING
COMING
MONTHS, OCCUPANCY IS EXPECTED TO CONTINUE TO REMAIN AT A LOW
LEVEL DURING Q1.
    * AGREED AND PROPOSED RENT REDUCTIONS APPLY MAINLY FOR
PERIOD
2020-2022, OF WHICH MORE THAN HALF APPLY FOR 2021
    * CONSIDERS FURTHER RENT REDUCTIONS TO BE NECESSARY TO
MANAGE
CURRENT MARKET SITUATION AND NEGOTIATIONS ARE ONGOING WITH A
NUMBER OF PROPERTY OWNERS

Source text for Eikon:  ID:nWkr9VGbcY 
Further company coverage:  SHOTE.ST 

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