Scandic Hotels, a leading hotel company in the Nordic countries, and property company Pandox have agreed to extend the leases for 19 hotels in the Nordic region and to start a renovation programme at the hotels.

The investment is around SEK470m over a three-year period, which will be shared equally by the two firms.

The leases of 19 hotels in the Nordic countries that are being extended includes eight in Sweden, six in Finland, three in Denmark and two in Norway with the majority of the lease contracts expiring between 2017-2020.

In total, 3,437 rooms are included, of which the renovation will impact about 1,600 hotel rooms and bathrooms as well as extensive meeting and restaurant spaces.

The agreement also covers extensions that will add 73 new hotel rooms at three different hotels.

Scandic Hotels Group president and CEO Frank Fiskers said: "Given the good results we’ve enjoyed from our previous joint program, I am very pleased to once again have signed a long-term agreement that secures and also increases the competitiveness and earning potential of these hotels going forward."