Scandic to acquire Restel's hotel operations in Finland

Scandic Hotels Group announced on June 21, 2017, that it has signed an agreement to acquire Restel's hotel operations in Finland. The transaction, subject to regulatory approval, is expected to be completed in late Q4 2017. Upon completion, Scandic will become the largest hotel operator in Finland, solidifying its role as the leading hotel company in the Nordic region.

The acquired portfolio includes 43 hotels with approximately 7,600 rooms, primarily operating under the Cumulus brand. These hotels will be converted to the Scandic brand over time. The acquisition price is EUR 114.5 million on a cash and debt-free basis. Scandic anticipates revenue growth and margin improvements within the acquired portfolio.

Frank Fiskers, President & CEO of Scandic, stated that the acquisition is a significant step in strengthening Scandic's Finnish market presence. Aki Kyhkö, Managing Director of Scandic Hotels Finland, highlighted the complementary nature of the portfolios, which will expand Scandic's reach into 15 new Finnish locations.

Scandic expects to enhance profitability through rebranding, expanded offerings, and administrative and procurement synergies. The company estimates that the acquired operations have the potential to generate an adjusted EBITDA margin exceeding the Group's long-term target of 11 percent over time.