In December, Scandic's average occupancy rate totaled 15 percent, which means that occupancy for the fourth quarter was approximately 23 percent, in line with the company's forecast from
According to
Scandic's available liquidity at year-end amounted to approximately
Based on current booking trends, average occupancy is expected to be about 15 percent in January. Although Scandic anticipates a gradual increase during the coming months, occupancy is expected to continue to remain at a low level during the first quarter.
For some time, Scandic has been negotiating rents with property owners, which has thus far led to agreements for rent reductions and offers for reduced rents totaling approximately 850 MSEK. The agreed and proposed rent reductions apply mainly for the period 2020-2022, of which more than half apply for 2021.Scandic considers further rent reductions to be necessary to manage the current market situation and negotiations are ongoing with a number of property owners.
After the COVID-19 pandemic began, Scandic was able to quickly reduce its cost base by more than half, excluding rents. With its low costs, market-leading position and efficient operational model, Scandic has what it takes to be the most competitive and attractive partner for hotel property owners in the Nordic region.
Scandic's Year-end Report for 2020 will be published on
This information is such that
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