Scandic Hotels (SHOT) CMD 2025 summary

Strategic Direction and Growth Plans

• Focus on multi-brand growth in the Nordics and selective expansion in Germany, targeting 10,000 new leased rooms and 5,000 franchise rooms by 2030, with Scandic Go expected to account for 50% of new signings.

• Strengthening Nordic leadership with 7,000 new leased rooms and 30-40 new franchise hotels, while expanding in Germany with about 3,000 new leased rooms in top cities.

• Emphasis on commercial excellence, digitalization, and operational efficiency to drive higher guest satisfaction, loyalty, and profitability.

• Strong commitment to sustainability, with science-based targets and integration of sustainability into all business areas.

• Franchise expansion to broaden Nordic coverage at low risk, with a clear program to ensure brand standards and profitability.

Financial Guidance and Capital Allocation

• EBITDA margin improved by 25% since 2019, with a target to maintain margins above 11% and leverage below 1x.

• Net sales reached SEK 22.0bn in 2024, with an adjusted EBITDA margin of 11.4%.

• Plans to distribute approximately SEK 1.9 billion to shareholders via dividends and buybacks from Dec 2024 to Mar 2026, with a dividend policy of at least 50% of net result.

• CapEx for 2025–2027 expected at 5–6% of revenues, focused on expansion, maintenance, and digitalization.

• Financial flexibility maintained through low net debt, record low net debt/EBITDA at 0.1x in 2024, and a SEK 3.7 billion financing agreement.

Market Outlook and Business Developments

• Nordic hotel market expected to see demand outgrow supply through 2030, with domestic, leisure, and mid-market segments as key growth drivers.

• Demand in the Nordics is significantly above 2019 levels, with a 13% increase in demand and 17% in supply from 2019 to 2024.

• Germany remains a fragmented but high-performing market, with selective expansion in major cities and a focus on margin contribution.

• Leisure segment outpacing business travel in growth, with increased focus on digital guest experiences and loyalty programs to capture this trend.

• Commercial partnerships, notably with SAS, to enhance loyalty program value and drive revenue growth.