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Expansion plans "undiluted" despite downturn
Scandic Hotels has reported an 8% increase in operating profit and a 5% rise in revenue in 2008 despite an industry-wide fall in occupancy.
Frank Fiskers, Scandic's president and ceo, said the chain's expansion plans - which resulted in 2,382 rooms and 5,000 room refurbishments last year - remain "undiluted" for 2009.
The hotel chain's revenue stood at €758.5m last year, an increase of €38m. But operating profits experienced the strongest growth, rising from €103m in 2007 to €111.1m this year.
Occupancy was the only figure to suffer, falling from 65.6% in 2007 to 64.9%. This fall was offset by an increase in revenue per available room (revPAR) from €61.6 to €63.2.
Gross profit rose from €276.5 to €311.5, an increase of €35m.
"I am very happy to report such a reassuring sales increase for 2008," said Mr Fiskers.
"It is always tough comparing revenue figures with record highs and 2007 really was a record year for Scandic."
"However, we still managed to continue the positive trend during the first half of 2008, although autumn was naturally weaker."
Mr Fiskers said Scandic's focus on the mid-market segment made it less vulnerable to the economic downturn and the resulting decline in global travel.
"Scandic captured market share in most markets during 2008, which shows the importance of having a strong brand in these times," he said.
Waste, carbon emissions and water and energy consumption across the Scandic chain were all down compared to 2007.
Mr Fiskers challenged other hotels to publish all their key figures in financial reports, including "green" results.