Scandic's occupancy rate is expected to amount to at least 35 percent in June and business on the books for July is clearly higher than it was at the same time last year. Scandic expects occupancy in
Higher occupancy
Since Scandic published its interim report for the first quarter 2021 on
As previously announced, Scandic's occupancy was approximately 20 percent in April. Since then, demand has grown and occupancy was about 25 percent in May and is expected to amount to at least 35 percent in June. The increase has been broad, with higher occupancy at almost all destinations on both weekdays and weekends.
Domestic leisure travel is increasing in all markets. Currently, demand is strongest in the Norwegian market, with occupancy rates of around 40 percent. Scandic's operations in
Demand has increased in all of the Nordic capitals, with the greatest growth in
Reduced cash outflow
RevPAR (average revenue per available room) was
As a result of increased occupancy and RevPAR, Scandic's cash outflow per month has dropped compared with the previous quarter. Scandic continues to estimate that positive cash flow will be achieved at an average occupancy rate of around 50 percent. During the second quarter, Scandic expects to receive direct state aid of at least 200 MSEK.
Improved booking trend
During 2020, Scandic's occupancy rose from just 6-8 percent in April and May to 42 percent in July. The improvement was driven entirely by domestic tourism and occurred despite very limited demand in the capital cities. Although customers are continuing to act with short lead times, it is clear that the business on the books for July is clearly higher than it was at the same time last year. Currently, about 22 percent of Scandic's capacity is booked for July compared to 14 percent at the same time last year. Compared with 2020, the largest rise in booking activity has been seen in the larger cities due to eased restrictions.
In light of the improved booking situation, Scandic expects occupancy in
Scandic's half-year report will be published at
Presentation on
Scandic's President & CEO
To participate by phone, call +46 850 558 354 in
Please call in five minutes before the start. The presentation will be held in English.
You can view the webcast at www.scandichotelsgroup.com. Presentation slides will be available on the website.
For more information, please contact:
Henrik Vikström, Director Investor Relations,
Email: henrik.vikstrom@scandichotels.com
Phone: +46 709 52 80 06
This information is information that
About
Scandic is the largest hotel company in the Nordic countries with more than 280 hotels, in operation and under development, in more than 130 destinations. The company is the leader when it comes to integrating sustainability in all operations and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and the company is one of the most attractive employers in the region.
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