Scandic Hotels Group has reported a 7.9% increase in net sales to Skr5.69bn ($553.2m) in the second quarter (Q2) of 2023, compared with Skr5.27bn in the same quarter of 2022.
Its average revenue per available room (RevPAR) climbed to Skr828 in April, May and June of 2023, driven by strong performance in all its markets, marking a 10.7% growth from RevPAR of Skr749 in the year-ago quarter.
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Driven by increased demand for conferences and meetings across all markets, revenue from restaurant and conference operations rose 5.8%.
Also benefitting the quarterly performance was the decrease in net debt to Skr2.82bn from Skr4.72bn.
The average occupancy rate during the quarter stood at 63%, versus 63.2% in Q2 2022.
In the Nordic market, the quarterly average occupancy rate was 56-72%, with Denmark recording the highest occupancy and Finland the lowest.
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By GlobalDataThe Sweden-based hotel chain’s operating profit was Skr833m in Q2 2023, down from a profit of Skr1.01bn in the same period last year.
Net profit dropped to Skr271m from Skr432m.
Adjusted earnings before interest, taxes, depreciation and amortisation fell to Skr772m from Skr1.08bn.
Net financial expense rose 5% year-on-year to Skr503m. Digital development and higher marketing costs escalated the costs of central functions to Skr114m from Skr68m.
Scandic Hotels Group president and CEO Jens Mathiesen said: “Backed by our strong financial position, during the first half of 2023, we gradually ramped up activity in the company with a commercial and data-driven focus and continued developing Scandic Go.”
Recently, Scandic was also in the news for entering a lease agreement with Pandox to open a new 221-key Scandic Go branded hotel at Fridhemsplan in Stockholm, Sweden
