Scandic hotel group sees weak demand continuing in first quarter

Scandic Hotels AB

15/01/2021 08:15

STOCKHOLM, Jan 15 (Reuters) - Scandic Hotels, the biggest
chain in the Nordics, said on Friday that low demand at the end
of 2020 was expected to spill over into the first quarter of the
new year, impacted by harder restrictions due to the
coronavirus.
    The company said the occupancy rate in December had been at
around 15%, adding it expected an average occupancy rate of
about 15% for January as well.
    "Although Scandic anticipates a gradual increase during the
coming months, occupancy is expected to continue to remain at a
low level during the first quarter," it said in a statement.
    Occupancy in the fourth quarter was around 23%, in line
with Scandic's forecast given in December, it said.
    Around half of Scandic's hotels had been closed during the
Christmas holidays, affecting occupancy negatively in December
and early January.
    The firm said market RevPAR (revenue per available room)
dropped 59-72% in the fourth quarter in the Nordics compared to
last year.
    Scandic said rent negotiations had so far led to agreements
and offers for rent reductions of around 850 million crowns
($102.1 million), adding further rent reductions will be
necessary to manage the market situation.
    Scandic, which is due to publish its fourth-quarter report
on Feb. 17, said its available liquidity at year-end amounted to
around 1.9 billion Swedish crowns.


($1 = 8.3271 Swedish crowns)





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