Yahoo Finance Europe’s Scandic Hotels Targets Youthful Travelers With New Economy Brand
Scandic Hotels Group has added a third brand to its portfolio with the aim of capturing more price-conscious customers.
Scandic Go will initially launch at five refurbished properties in Stockholm, Oslo and Copenhagen.
The new brand, unveiled on Tuesday, joins the core Scandic brand and the luxury Signature Hotels.
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In order to strip out costs there will be no full-service restaurant or gym with smaller rooms and free entertainment. The company wants to attract a “playful, young” audience.
“In bigger cities, we’ve seen changes in the way new and returning guests spend their time both in and outside of the hotels. Now is the perfect time to expand our offering and establish Scandic in a segment where we see strong potential to grow,” Jens Mathiesen, president and CEO of Scandic Hotels, said.
Full-Year Results
Scandic’s new brand was announced on the same day it reported its full-year results.
The company reported an 11.4 percent rise in pre-tax profit to $92.3 million (902 million Swedish crows) with revenue up 5.2 percent to $1.9 billion (18.9 billion Swedish crowns) for the twelve months until the end of December 2019.
Scandic has around 280 hotels, mainly in the Nordic countries of Sweden, Finland, Norway and Denmark. Most of the properties are operated with lease agreements.
In 2017 it initiated a major regional expansion with a deal to buy 43 hotels in Finland.
Scandic Hotels is listed on the Nasdaq Stockholm.
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