Occupancy at Scandic Hotels
has increased from just 36 per cent in June to 58.5 per cent in July and 53.5
per cent in August, with domestic business travel and meetings driving demand on
weekdays, the group has said.
The greatest
increase in occupancy has been in the larger cities with Denmark and Norway having
the highest occupancy rates; activity levels in Finland are at a considerably
lower level.
The company said: “There is a great pent-up need for meetings
among Scandic’s customers after a long period with extensive restrictions and
many people working from home. Although customers are continuing to act with
short lead times, there is a clear increase in booking activity related to
meetings. This is apparent not least in Sweden after the government recently
announced that restrictions on the number of participants at public gatherings
and events will end on 29 September.”
Scandic
continues to estimate that an occupancy rate of around 40 per cent is needed to
achieve positive adjusted EBITDA and about 50 per cent for positive cash flow. The company expects occupancy to exceed 50 per cent in September.
Jens Mathiesen, president & CEO of Scandic Hotels, said, “It is
extremely gratifying to see that our occupancy rate has remained higher than 50
per cent from the second week of July up until today. This clearly shows that
an increased demand for business travel and meetings has compensated for the
reduced leisure travel on weekdays in connection with the end of the holiday
period in mid-August. The increased booking activity we’re now experiencing
means that we have a positive outlook on development in the coming months.”