Scandic Hotels’ Adjusted Operating Profit Rises More Than 20% in Third Quarter

Key Facts

Scandic Hotels Group raised adjusted earnings before interest, taxes, depreciation and amortization to SEK 1,330 million in the third quarter of 2026, an increase of more than 20% from the same period a year earlier, according to results published on November 10. Quarterly revenue rose 7.9% to SEK 6,877 million, while organic growth was 4.5%. The company said the adjusted operating profit margin improved to 19% from 17%. The results covered the quarter from July 1 to September 30, before the consolidation of Dalata’s hotel operations began following completion of the acquisition in November. The figures reflect Scandic’s existing business during the quarter, along with management fee revenue related to operating Dalata hotels in Ireland and the United Kingdom.

Revenue grew faster than organic growth, with sales rising from SEK 6,372 million in the corresponding quarter to SEK 6,877 million. Adjusted operating profit rose from SEK 1,088 million to SEK 1,330 million, and the margin improved by two percentage points to 19%. Scandic said stronger demand and a busy events calendar in its markets supported increases in occupancy and room rates. Average room rates rose 5%, while revenue per available room, or RevPAR, increased 7%. Average occupancy was 75.5%, compared with 74.2% a year earlier, while RevPAR rose to SEK 1,031 from SEK 966.

Stronger hotel demand directly supported growth in operating metrics, as occupancy and rates both rose during the quarter. The company said, "Average room rates rose 5%, and revenue per available room increased 7%." Scandic reported free cash flow of SEK 945 million, compared with SEK 593 million in the same quarter last year. The increase in cash flow, alongside an improved adjusted operating profit margin, came in a quarter when revenue expanded and room yield metrics rose. In the first nine months of 2026, sales increased 5.1% to SEK 17,564 million from SEK 16,713 million, while organic growth was 3.4%.

Management fees from Dalata Hotels contributed to revenue before ownership of the operations transferred to Scandic. Revenue from the management agreement in Ireland and the United Kingdom was SEK 91 million during the quarter, the company said, while its report said the fees had a positive effect of SEK 84 million on adjusted operating profit. The agreement provided for a quarterly management fee equal to 4% of Dalata hotel operating revenue and took effect on November 7, 2025. The Other Europe region includes those activities, alongside Scandic’s operations in the relevant markets. After the deal closed, Dalata shifted from a source of management fee revenue to hotel operations that will appear in the group’s consolidated results.

Scandic completed its acquisition of Dalata’s hotel operations on November 2 for about €500 million and began consolidating its results from the completion date. The acquired operations include 57 hotels and about 12,500 rooms, as well as development plans for about 1,600 more rooms. The company published indicative combined figures for the 12 months ended September 30, 2026, showing revenue of SEK 30,415 million and adjusted operating profit of SEK 3,353 million, with a margin of 11.0%. It said the unaudited figures are not guidance for future performance. The combined hotel development pipeline, including Dalata, stood at 20 hotels and about 5,000 rooms.

Scandic said fourth-quarter trading was good through the date of the results announcement, with strong demand for business travel, meetings and conferences. The company expects occupancy and room rates for the full quarter to be slightly higher than their levels in the fourth quarter of 2025. That follows the increases recorded in the third quarter, when average occupancy, room rates and revenue per available room improved year over year. It also said a new SEK 7.5 billion long-term financing framework strengthens its financial flexibility and supports its growth strategy, including the acquisition of Dalata. The fourth quarter is the first full period since Dalata’s operations transferred to Scandic ownership, while its results will be consolidated from November 2.