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1. Company Snapshot

1.a. Company Description

Scandic Hotels Group AB (publ), together with its subsidiaries, operates and franchises hotels in Sweden, Norway, Finland, Denmark, Germany, Poland, and other European Countries.The company operates hotels under the Scandic, Hilton, Holiday Inn, Crown Plaza, and Indigo brands.As of June 10, 2022, it operated approximately 280 hotels.


The company was founded in 1963 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on SHOT

Scandic Hotels Group AB's recent performance was driven by robust first-quarter earnings, with significant EBITDA improvement and strategic initiatives poised to drive future growth. The company's strong EBITDA growth was a notable highlight, underscoring its ability to navigate a challenging market. Additionally, Scandic's expansion into new markets, including the recent agreement to lease an alpine hotel in Sälen, demonstrates its commitment to strategic growth. Furthermore, the company's announcement to expand in Sweden with a 236-key hotel in Uppsala, slated to open in 2028, showcases its ambitious development plans.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Scandic Hotels Group AB (FRA:10H) Q3 2025 Earnings Call Highlights: Strong Sales and Strategic ...

Oct -30

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Scandic Hotels Group (OM:SHOT): Exploring Valuation After Steady Share Price Performance

Oct -03

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Scandic Go to launch first Norway hotel

Aug -20

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Scandic Hotels Group AB (FRA:10H) Q2 2025 Earnings Call Highlights: Strategic Expansion and ...

Jul -16

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Scandic expands in Sweden with 236-key hotel in Uppsala

Jun -18

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Scandic broadens footprint in Sweden with alpine hotel in Sälen

Jun -06

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Scandic Hotels Group AB (FRA:10H) Q1 2025 Earnings Call Highlights: Strong EBITDA Growth and ...

Apr -16

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Lars-Åke Bokenberger nominated for Scandic Hotels board

Mar -03

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.58%)

6. Segments

Room

Expected Growth: 3.5%

Scandic Hotels Group AB (publ) achieves 3.5% room growth driven by strategic expansion into key Nordic markets, increased demand from business travelers, and effective yield management. Additionally, investments in digitalization and loyalty programs enhance customer experience, leading to higher occupancy rates and revenue growth.

Restaurant and Conference

Expected Growth: 3.8%

Scandic Hotels Group AB's Restaurant and Conference segment growth of 3.8% is driven by increasing demand for meetings and events, strategic location of hotels, and improved food and beverage offerings. Additionally, the company's focus on digitalization, loyalty programs, and operational efficiency have contributed to the growth. Furthermore, the segment has benefited from the increasing trend of bleisure travel, where business travelers extend their stay for leisure purposes.

Other Hotel-related

Expected Growth: 3.2%

Scandic Hotels Group AB (publ)'s 3.2% growth in Other Hotel-related segment is driven by increasing demand for meetings and events, strategic partnerships with loyalty programs, and expansion of food and beverage offerings. Additionally, investments in digital platforms and loyalty programs have enhanced customer experience, contributing to revenue growth.

Franchise and Management

Expected Growth: 4.2%

Scandic Hotels Group AB's Franchise and Management segment growth of 4.2% is driven by increasing demand for outsourced hotel operations, strategic partnerships, and expansion into new markets. Additionally, the company's focus on digitalization, cost savings, and revenue management initiatives contribute to the growth. Strong brand recognition and a solid pipeline of new franchise agreements also support the segment's growth.

7. Detailed Products

Hotel Rooms

Scandic Hotels Group offers a wide range of hotel rooms, from standard rooms to suites, equipped with modern amenities and comfortable furnishings.

Meeting and Event Spaces

Scandic Hotels Group provides meeting and event spaces for conferences, weddings, and other events, equipped with modern technology and catering services.

Food and Beverage Services

Scandic Hotels Group offers a range of food and beverage services, including restaurants, bars, and room service, serving local and international cuisine.

Wellness and Fitness Services

Scandic Hotels Group provides wellness and fitness services, including gyms, spas, and saunas, to help guests relax and rejuvenate.

Loyalty Program

Scandic Hotels Group offers a loyalty program, Scandic Friends, which rewards guests for their stays and provides exclusive benefits.

Conference and Event Planning Services

Scandic Hotels Group provides conference and event planning services, including customized solutions and event coordination.

8. Scandic Hotels Group AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Scandic Hotels Group AB (publ) faces moderate threat from substitutes, as customers have alternative accommodation options such as Airbnb, hostels, and vacation rentals.

Bargaining Power Of Customers

Scandic Hotels Group AB (publ) has a high bargaining power of customers, as customers have many options to choose from and can easily switch to competitors.

Bargaining Power Of Suppliers

Scandic Hotels Group AB (publ) has a low bargaining power of suppliers, as the company has a strong negotiating position due to its large scale of operations.

Threat Of New Entrants

Scandic Hotels Group AB (publ) faces a moderate threat of new entrants, as entering the hotel industry requires significant capital investment and regulatory compliance.

Intensity Of Rivalry

Scandic Hotels Group AB (publ) operates in a highly competitive industry, with many established players and a high level of rivalry among hotels.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.77%
Debt Cost 5.65%
Equity Weight 31.23%
Equity Cost 14.04%
WACC 8.27%
Leverage 220.20%

11. Quality Control: Scandic Hotels Group AB (publ) passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NH Hotel Group

A-Score: 6.0/10

Value: 6.9

Growth: 7.7

Quality: 6.6

Yield: 0.0

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Meliá Hotels

A-Score: 5.8/10

Value: 7.5

Growth: 6.8

Quality: 5.7

Yield: 1.9

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Dalata Hotel

A-Score: 5.4/10

Value: 5.3

Growth: 7.4

Quality: 4.9

Yield: 2.5

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

Stock-Card
Scandic Hotels

A-Score: 5.4/10

Value: 5.0

Growth: 5.4

Quality: 4.6

Yield: 3.8

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Pierre et Vacances

A-Score: 4.7/10

Value: 6.9

Growth: 7.4

Quality: 3.4

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

1-Year Total Return ->

Stock-Card
PPHE Hotel Group

A-Score: 4.3/10

Value: 3.4

Growth: 5.6

Quality: 3.1

Yield: 2.5

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

86.8$

Current Price

86.8$

Potential

-0.00%

Expected Cash-Flows