Scandic and Pandox have agreed to extend the leases for 15 hotels and one conference property. Pursuant to the agreement, the rental terms will remain unchanged, enabling good profitability and balanced risk for Scandic. The parties have also agreed on a joint renovation program for the hotels.
Scandic and property owner Pandox have agreed to extend the leases for 15 hotels in the Nordic region, of which 12 are in Sweden, two in Finland and one in Norway. In addition, the agreement for the Marina Congress Center in Helsinki has been extended. The agreement includes a total of 3,598 hotel rooms.
The lease agreements are revenue based, have a contracted minimum level and expire in 12 to 20 years. The terms of the agreements will remain unchanged, enabling good profitability and balanced risk for Scandic.
In connection with the extensions, the parties have also agreed on a joint 700 MSEK renovation program that will also add 15 rooms. Pandox has also agreed to make investments in ventilation and heat recovery in a number of hotels, which will reduce energy consumption and operating costs while increasing guest comfort.
- I am very pleased that we’ve made this long-term agreement with our biggest property partner. Over time, we have developed a successful model together with Pandox based on close collaboration and revenue-based rent. These investments will further strengthen the competitiveness and earning capacity of the hotels in the future, says Jens Mathiesen, President & CEO of Scandic Hotels Group.