It was 104°F last week in Dubai, 106°F in Riyadh and Abu Dhabi temperatures rose past 120°F in June.
17.07.2024 - 16:00 / skift.com / Sean Oneill
Scandic Hotels Group reported results for the first-half of the year, and the operator of about 280 hotels is now targeting expansion through its Scandic Go brand and conversions of office buildings.
The company opened its first Scandic Go hotel in Stockholm last September. Its second Scandic Go is slated to open this October. The hotel group recently announced two new signings for its Scandic Go brand in Gothenburg and Umea.
The Scandic Go pipeline now totals nearly 900 rooms, representing almost 50% of the overall group’s growth pipeline.
Notably, two of the new Scandic Gos are conversions of office buildings, with planned openings in 2026. In some urban markets, demand for commercial office space has outpaced supply.
“The sentiment among property owners has improved, and there is particular interest in converting office buildings, which suits the Scandic Go brand well,” said CEO Jens Mathiesen on Wednesday.
Scandic Go’s design is meant to reduce costs – it lacks a full-service restaurant or gym, for example. It joins the group’s core brand, Scandic, and its luxury brand, Signature Hotels.
“Right now, there’s a lot of property owners with a lot of office space available, and they need to find alternatives for this,” Mathiesen said. “It’s not always easy to convert into private housing and things like that. So, they’re wondering: should they rent it out for a lower rent, or should they look at alternatives?”
“Hotels have a good future, with it expected that the hotel industry will grow year-on-year, like 3% on average in the Nordics in the coming years,” Mathiesen said.
Executives claimed that their sharp focus on cost control and efficiency contributed significantly to Scandic Hotels’ improved margins.
“Based on current bookings, we anticipate a continued good summer and a positive start to the conference season in the fall,” said Mathiesen.
“For the third quarter, we expect occupancy rates to be in line with last year’s and price levels to be slightly higher,” he said. “Household demand for travel and leisure activities remains high, and a more stabilized economy in the Nordics is paving the way for continued positive development in the hotel market.”
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.
Read the full methodology
It was 104°F last week in Dubai, 106°F in Riyadh and Abu Dhabi temperatures rose past 120°F in June.
As Lisbon's popularity among travelers grows, so does the number of top-notch hotels that open in the city.
Crystal Lagoons continues to revolutionize cities worldwide by bringing the tropical beach lifestyle through its Public Access Lagoons® model, also known as PAL® model. The global expansion of the multinational innovation company, which totals 1,000 projects in different stages of development and negotiation in 60 countries, is now evident in Europe with a new complex in Seville, a Mediterranean city and one of the most iconic and attractive in Spain, which will have a Caribbean atmosphere thanks to the new project of the company.
American Airlines CEO Robert Isom outlined numerous steps the airline is taking to “course correct” after abandoning a direct distribution strategy it embarked on in 2023.
A TikToker has racked up nearly a million views in a recent video that explained how Europe is becoming a hotbed for American tourists.
Equinox Hotels, a revolutionary leader in high-performance luxury hospitality, is proud to announce plans for the opening of Equinox Resort Treyam, one of Magna’s twelve destinations, located on the coast of the Gulf of Aqaba. Magna’s destinations, including Treyam, are part of NEOM, the evolving regional development, taking shape in northwest Saudi Arabia.
The UK’s leading provider of adult short break experiences, Warner Hotels, has revealed an exciting new rebrand, to be rolled out across its collection of unique country and coastal properties.
Low-cost Icelandic airline Play is helping travelers plan a European shoulder season vacation by offering 25 percent off fall and early winter flights.
Selina Hospitality, a hotel and experiences brand focused on youth travelers, said Monday it “no longer has any reasonable prospects of avoiding an insolvency.”
Hyatt is reportedly near to closing a transaction with Standard International, owner of the luxury lifestyle brand The Standard and other brands.
One of the simple pleasures of traveling is checking into a hotel room and being greeted by miniature bottles of shampoo, conditioner, and body wash from luxurious brands that you’d never splurge on for yourself.
Hyatt is close to a deal to buy Standard International, the operator of the upscale The Standard Hotels, according to reports on Thursday.