Scandic hotel group sees stronger market ahead as profits rise

Scandic Hotels AB

15/10/2021 07:36

STOCKHOLM, Oct 15 (Reuters) - Scandic Hotels  SHOTE.ST  said
expected a positive market development in the coming months as
COVID-19 restrictions ease across the Nordic region after it
reported a sharp rise in third-quarter profits on Friday.
    The biggest hotel chain in the Nordics said adjusted EBITDA
in the July-September period increased to 709 million crowns
($82.15 million), up from 90 million in a year-ago quarter which
that was hard hit by the pandemic.
    Scandic, which is due to announce full third-quarter
earnings on Oct. 28, said occupancy in the quarter was 55.1%,
more than double compared to the previous quarter, while sales
rose to 3.73 billion crowns from 2.09 billion. 
    It added that the improvement was also driven by strong
demand for domestic leisure travel during the summer.
    "Scandic is continuing to experience increased booking
activity, not least for meetings, which is being driven by the
gradual easing of restrictions in the company's markets," it
said in a statement on its preliminary results.
    Scandic also said that its net debt decreased by just over
500 crowns during the quarter.
($1 = 8.6302 Swedish crowns)

 (Reporting by Helena Soderpalm; editing by Niklas Pollard)
 ((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))