Scandic Hotels, Scandinavia’s largest hotel group, has announced a drop in 2020 Q4 net sales of 71 per cent to SKr 1,377 million (£119 million) from SKr 4,831 million (£418 million) in the same quarter of 2019. It made a loss of SKr 282 million (£24.4 million) for the period against earnings of SKr 504 million (£43.7 million) in 2019 on an adjusted Ebitda basis.
The group said that occupancy averaged just 23 per cent during the quarter due to Covid and strict international travel rules.
For 2020 as a whole, net sales fell by 61 per cent to SKr 7,470 million (£647 million) leading to a loss of SKr 1,503 million (£130 million) on an adjusted Ebitda basis. The group received rental rebates during the year of SKr 196 million (£17.0 million) and governmental support of SKr 726 million (£62.9 million).
Jens Mathiesen, president & CEO, said, “The past year has been tremendously challenging for the entire hotel industry. Both in December last year and during January this year, occupancy has been around 15 per cent…For February, the occupancy rate is expected to be around 18 per cent.”
He added, “We are convinced that the hotel market will recover during 2021. As the vaccinations are carried out, we foresee that the restrictions will be eased, which will enable increased travel, sports and cultural events and meetings.
“We foresee a recovery where occupancy increases month by month, driven mainly by domestic and intra-Nordic leisure travel combined with gradual increase in business travel and meetings for our Nordic customers.”
The group said it currently has available liquidity including credit commitments amounts to approximately SKr 1,400 million (£121 million).