news
Hotel News
World’s tallest hotel opens in Dubai 2024
The Ciel Tower hotel will soar 365 metres into the sky with 82 floors of luxury suites and serviced residences.
Hotels & Resorts
Accor Announces Global Launch of Its All-Inclusive Collection
Accelerating its expansion in the fast-growing market with a unique platform of multi-branded luxury and premium offers.
Hotel news
Ambitious Plans for Spectacular Scandic Holmenkollen Park
Modernised hotel reopens with 376 rooms and room for 1,200 conference visitors.
Changing of the guard
Peter King
to depart after 11 successful years.
hotel news
Hotel Sustainability Basics Launched at Leading Industry Summit in Manila
Set to drive responsible travel and tourism and to help every hotel address and improve their environmental impact.
hotell news
Scandic to Open Third Hotel in Tromsø
New hotel planned for 2025, with 305 rooms on 12 floors in the new Vervet area.

Global Business Travel’s Landmark Sustainability Study Reveals
What It Will Take to Get to a Greener Future.
Covid-19-Award
Double gold for Austria Center Vienna
at German Stevie Awards
The man, the myth, the legend
Patrick Delaney Honoured With Hall of Fame Award
Travel trade veteran receives 2022 Hall of Fame award at annual AIPCO conference.
hotelnews
Scandic Kiruna
first commercial enterprise to open in new city center.
RSS
rss_icon
Links
Scandic’s Occupancy and Bookings Continue to Increase in Line With Q2 Forecast

Booking and occupancy levels at Scandic’s hotels are continuing to improve gradually from a record low level in mid-April in line with the company’s forecast in its interim report for the first quarter 2020 that was published on May 20. As announced earlier, Scandic is preparing additional cost-saving measures to enable profitability at lower occupancy levels than before.

Since mid-April, there has been a gradual increase in average occupancy at Scandic’s hotels. In general, activity levels have improved somewhat in part as a result of governments and authorities easing some of the restrictions that were introduced to reduce the spread of the coronavirus. In May 2020, average occupancy at Scandic’s hotels was 8 percent compared with a record low level of 6 percent in April. Occupancy also continued to rise during the first week of June.

Booking activity has also gradually improved since the middle of April. The number of hotel bookings per week is now more than twice as high as a month ago. After the Swedish government announced on June 4, 2020 that the restrictions on domestic travel will be lifted, a clear increase in the number of bookings for the Swedish hotels was immediately noted.

For June 2020, Scandic continues to expect occupancy to increase a few percentage points compared with May and further improvement is expected once the holiday season starts as a result of domestic tourism.

At the beginning of May, more than half of Scandic’s hotels were temporarily closed. In Sweden and Poland, all hotels were open during the entire period and it is in these markets that activity levels have been highest. In Norway, Finland and Denmark, most hotels have been closed and until recently, all hotels in Germany were also closed. Scandic has now started to open hotels again and at the end of June, about 220 hotels, or about 80 percent of the total portfolio, are expected to be operating. Additional hotel openings are planned during the summer and in principle, all Scandic hotels are expected to be open by the end of August. The hotels’ food and beverage and meeting operations, however, will be adapted to the current situation.

By the start of the second quarter 2020, Scandic had reduced cost levels excluding rent by approximately 70 percent as a result of Covid-19. This has been achieved by lowering variable costs, reducing staffing levels extensively and introducing measures to lower the general cost level. Additionally, the company received State aid including support for furlough and covering fixed costs. Scandic is preparing further cost-savings measures and among other things, the company is evaluating fixed and guaranteed rental levels to find solutions together with the property owners that make it profitable to conduct hotel operations at lower occupancy levels than before.

Scandic confirms its previous forecast in the company’s interim report for the first quarter regarding an increase in occupancy of a few percentage points per month in May and June as well as continued improvement during the holiday period. Scandic expects the hotel market to continue to improve gradually during the second half-year and that net sales for 2020 will be more than halved compared with 2019.


Photo: Scandic Frankfurt.