Scandic has released its interim report for the first quarter of 2025, showcasing a solid performance driven by strong sales, increased occupancy, and positive organic growth. The company continues to demonstrate resilience in the hospitality sector, with key metrics showing improvement across various operational areas.

Quarterly financial overview

For the period of January 1 to March 31, 2025, Scandic saw net sales rise by 2.9% to SEK 4,546 million, compared to SEK 4,419 million in the same period last year. Organic growth, which excludes the impact of acquisitions and disposals, increased by 3.8%, benefiting from favorable calendar effects. This growth reflects the brand’s strong presence and ongoing recovery in the market.

Key operational highlights

Scandic’s operational performance in the first quarter was marked by an increase in occupancy and revenue per available room (RevPAR). The average occupancy rate rose to 55.1%, up from 51.9% in the previous year. Meanwhile, RevPAR improved to SEK 655, up from SEK 619 in Q1 2024, reflecting better room rates and higher demand.

The company also reported a significant increase in operating profit, which totaled SEK 194 million, compared to SEK 126 million in the first quarter of 2024. Adjusted EBITDA showed a notable rise, reaching SEK 101 million, up from SEK 33 million in the same period last year. Excluding non-recurring items, adjusted EBITDA was SEK 59 million, a significant improvement from SEK 27 million.

“Scandic delivers a solid start to the year, and based on the booking situation, we expect a good second quarter. Despite geopolitical uncertainty, the assessment here and now is that spring and summer will be characterized by good demand, driven by stable levels of travel, tourism and a good event calendar.” - Jens Mathiesen, President & CEO at Scandic

Cash-flow and financial health

While Scandic posted a free cash flow of SEK -680 million for the first quarter, the company’s financial position remains stable. Earnings per share, excluding IFRS 16, improved to SEK -0.58, up from SEK -1.10 in Q1 2024.

Share buyback and new hotel developments

During the quarter, Scandic successfully completed its share buyback program, repurchasing approximately SEK 300 million worth of shares. As of the report date, the company held 4,030,622 treasury shares, and the total number of shares, including treasury shares, was 219,157,922. 

Future growth and investments

According to  Jens Mathiesen, President & CEO of Scandic, during the quarter, Scandic signed an agreement for a new hotel in Berlin, with 214 rooms scheduled to open in the second half of 2026. The company’s pipeline now includes 12 hotels and 2,700 rooms, representing about 5% of the total rooms in operation. Scandic is set to open three new hotels in 2025, adding over 600 rooms to its portfolio.

In addition, the company is preparing to launch a new website and app, aimed at enhancing the guest experience. Scandic also continues to develop its strategic partnership with SAS, including the introduction of a status-matching feature between the two companies' loyalty programs in the second quarter. These initiatives reflect Scandic’s commitment to providing more personalized and seamless experiences for customers.

Performance by region

Scandic's performance varied across its key markets. According to  Jens Mathiesen, in Sweden, the development was stable, although affected by a weaker event calendar in Stockholm compared to last year. Norway, on the other hand, experienced its best first quarter ever, driven by strong market conditions and high operational efficiency. Finland showed a positive trend, although it remains cautious, with growth compared to last year from a low base.

Looking ahead

Scandic’s positive performance in the first quarter reflects continued progress in its recovery and growth strategies. The company remains focused on enhancing its operational efficiency, expanding its portfolio, and maintaining a solid financial position as it looks to navigate the rest of 2025.