Scandic Hotels Group AB · OMXSTO:SHOT
Scandic Hotels Group AB — Investor Day (September 2016)
102 slides from Scandic Hotels Group AB's investor day presentation, Sep 29, 2016
Slide 1: Scandic Continental Stockholm, September 29, 2016
Scandic Continental Stockholm September 29, 2016
Slide 2: Company history and milestones
1963 1983 Rapid expansion 2001 2007 Strong expansion 2014 through Acquired by with +40 hotels Esso The Scandic acquisitions: Acquired by Acquisition Motorhotell is brand is Hilton and EQT of Rica Hotels 1995 RESO delisted Significant established in launched investments in Laxå, Sweden 1998 Arctia th
Slide 3: Vision, Mission, Core Values
VISION A world-class Nordic hotel company Creating great hotel experiences for MISSION the many people CORE VALUES Be Caring – Be You – Be a Pro – Be Bold 3
Slide 4: Realize the opportunities of digitization
The favorite hotel brand Inspiring culture Realize the Dedicated corporate citizen opportunities of digitization Outperform the market Capitalize on market dynamics A growing hotel network 4
Slide 5: Back end industrialization, front end great hotel experiences
Back end – industrialization Front end – great hotel experiences 5
Slide 6: A world-class Nordic hotel company
COMMERCIAL OPERATIONS CAPABILITIES & PROCESSES NETWORK PEOPLE & QUALITY & CULTURE REACH TEAM ENGAGEMENT A world-class & MOTIVATION Nordic hotel GUEST SCALABILITY company SATISFACTION & LOYALTY MID-MARKET SUSTAINABLE POSITION FOOTPRINT FINANCIAL ONE OWN PERFORMANCE BRAND 6
Slide 7: #1 hotel brand in the Nordics
Picture of scandic logo on hotel – I explain the advantages & strengths of our brand • #1 hotel brand in the Nordics • Highest brand awareness • Preferred choice of accommodation • ~25% branded market share 7
Slide 8: A well-balanced offering
Meetings & Food & Rooms conferences beverages 65% 14% 19% A well-balanced offering catering to broad target groups within both business and leisure 8
Slide 9: Standardized concept and scale
Standardized concept management ensures • Consistency • Speed-to-market • Customer satisfaction Scale promote cost efficiency and improved margins • Centralized and systematic control over entire cost structure with full transparency • Common sourcing promotes competitive negotiations and leads to u
Slide 10: Lease-based hotel portfolio
• Scandic’s hotel portfolio is based on leases over 90% • Blue-chip landlords 50% of portfolio • The Nordics is predominantly based on lease agreements • Leases create mutual top line focus with landlords Fixed 11% Pandox 26% Fully variable 20% Other 53% 6% Rica Eiendom 69% CRFM 5% Balder 4% ~23% he
Slide 11: Rooms in expiring lease agreements
No. rooms in expiring lease agreements, H1 2016 (including Shark 2) 30,000 25,000 20,000 Fixed 15,000 CRFM 10,000 Fully variable 5,000 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 >2025 11
Slide 12: 230 hotels, 44,000 rooms
No of rooms Branded market (000s) share, Nordics 38.9 25% 31.3 20% 230 hotels 44,000 rooms 14.8 10% in operation and 11.2 7% under development 9.7 6% 8.6 6% 12
Slide 13: Renovation programs
• SEK 1.3 bn spent during EQT ownership • Shark 1 (Scandic / Pandox) SEK 1.6 bn renovation program of ~40 properties, conducted 2012-2015 • Shark 2 (Scandic / Pandox) SEK 470 m 3-4% of annual renovation program of 17 properties net sales invested in 2016-2019 refurbishment initiatives 13
Slide 14: Broad customer base
Room nights Corporate customers Leisure groups Group Meetings & 10% Government leisure business corporate groups 15% Broad Individual 50% customer corporate base 25% Sports & Individual Individual organizations leisure leisure Meetings & corporate groups 14
Slide 15: Net sales and adj. EBITDA split
Net sales Intra-Nordic vs Non-Nordics Other Nordics & Europe 28% 43% Sweden USA 29% 1% Norway Germany 3% Intra- Non- 83% 17% Nordic 10% Others Nordic 3% Adj. EBITDA UK Other Nordics & Europe 28% Sweden 19% Norway 53% Split by LTM June 2016 15
Slide 16: Recurring corporate base and Scandic Friends
70% B2B ~ 1.8 million Scandic Friends members 1,766 95 % of top 500 Scandic Friends members (000s) 1,648 ~40 % of room customers renew 1,427 revenue from corporate agreements Scandic Friends 1,052 every year 893 745 593 Corporate business is split 50-50 on volume and dynamic pricing 2010 2011 2012 2
Slide 17: Controlled distribution share of room nights
Share of room nights, FY 2015 Contracted leisure Online travel 7% agencies (OTAs) ~70 % 14% controlled 36% Hotel direct distribution Global distribution 14% system (GDS) 11% 21% Call centers Website 17
Slide 18: Revenue management to increase RevPAR
• The right product for the right customer at the right time for the right price • Entire revenue process and tools are automated on one platform A proven and • Generic structure and processes across countries and each revenue manager tangible way works in close cooperation with local to increase ho
Slide 19: Flexible cost structure
• Well-developed and anchored Cost structure H1 2016 KPI culture Cost of sales • Flexible cost structure adapted to 10% changes in demand Hourly casuals Full-time • Centralized and systematic control team over entire cost structure – full Other 37% members 25% Payroll transparency costs Part-time te
Slide 20: Hotel-level P&L responsibility and central support
• General Manager has full P&L responsibility • Offering adapted to demand local market • Support by centralized functions and expertise: • Revenue management clustered based on key destinations • Central sales resources focused on key customer segments • Shared service functions – finance, payroll,
Slide 21: Inspiring Nordic culture and ambitions
INSPIRING NORDIC DEFINES OUR CULTURE AND a AMBITIONS AND WHO WE ARE fw \ E oat a es 1s yo eken a ne i Vs . ae BE CARING PRESENT pte FUTURE BE A PRO WEIGHT TAKE lek SCMNOIC OUT OFTHE NORDCS BUT WE WL oe NEVER TAKE THE NooLCS 7 HOTEL EXPERIENCES FOR THE MANY PEOPLE A WORLD-CLASS NORDIC HOTEL COMPANY a
Slide 22: Internal recruitment of General Managers
• Get on board • Commercial • Functional • Service • Leadership High degree of General Managers are internal recruitments 22
Slide 23: Employees and engagement
732 NMI in Voice-Index = Excellent 10,266 FTEs 120 nationalities Male 54% 46% Female General Managers 23
Slide 24: Guest offering and customer feedback
• Flexible offerings • Excellent service • Welcoming and friendly • Consistent quality • Reliability • Value for money • Customer feedback important for product development and service level enhancements • Measure and follow up systematically • NPS to be implemented during 2017 24
Slide 25: Sustainability milestones
Disability Ambassador Smart solutions No more disposable packages Minimum standards “Hang up towel” concept First Swan-labelled hotel Accessible rooms New ambitious targets for 2020 Pluralist work wear for disabled guests 1994 1995 1996 1997 1999 2001 2002 2006 2008 2015 2016 Smart showers Safety &
Slide 26: Growing top line with large recurring base
Growing top High and line with large Flexible cost Strong cash resilient recurring base structure conversion EBITDA margin 26
Slide 27: Financial results January-June 2016
Jan–June 12 months ending MSEK 2016 2015 Change, % June 2016 Dec 2015 Change, % Net sales 6,041 5,833 3.6% 12,400 12,192 1.7% Adjusted EBITDAR 2,087 1,957 6.6% 4,536 4,406 3.0% Adjusted EBITDAR margin, % 34.5% 33.6% 36.6% 36.1% Adjusted EBITDA 509 424 20.0% 1,331 1,246 6.8% Adjusted EBITDA margin, %
Slide 28: Sales growth
Jan–June vs LY Sales growth MSEK % Changes in hotel network 32 0.6 Currency -167 -3.3 Like-for-like growth 342 6.3 Total sales growth 207 3.6 28
Slide 29: Cash flow and net debt
2016 2015 MSEK Jan–June Jan–Dec Cash flow before investments 265 1,186 Investments -292 -785 Operating cash flow -27 401 Net debt 3,543 3,355 Net debt / adjusted EBITDA, LTM 2.7 2.7 29
Slide 30: Investments and renovations
Investments (MSEK) Renovations / net sales, rolling 12 months (%) 800 7 700 6 600 5 500 4 400 3 300 2 200 100 1 0 0 2013 2014 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2014 2015 2015 2015 2015 2016 2016 Maintenance Development IT & other 30
Slide 31: Adj. EBITDAR and EBITDA margin
Total rent as % 24.4% 24.6% 24.9% 25.1% 25.9% 25.9% 25.9% 25.8% of net sales Adj. EBITDAR margin and adj. EBITDA margin Adj. EBITDAR 40% 12,192 12,400 margin 35% 10,826 30% 25% 8,035 7,882 7,611 7,021 7,197 20% 15% 4,406 4,536 2,620 2,807 3,826 Adj. EBITDA 10% 2,365 2,734 2,371 margin 5% 1,019 1,246
Slide 32: Financial targets and dividend policy
Growth Profitability Capital structure 5% 11% 2–3x excl. M&As Adjusted EBITDA margin Net debt / LTM adjusted EBITDA Net sales growth 12% 12% Dividend 10% policy 8% 6% 8% 2.7 2.7 >50% of net profits 4% 4% 2% 0% -2% 0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Dec 31 June 30 2015 2016 Net sale
Slide 33: Drivers of profitable growth
DRIVERS OF PROFITABLE GROWTH Rica synergies Ramp up Market Scandic Network & new hotels growth initiatives expansion improvements & signed pipeline 33
Slide 34: Strong momentum in all key markets
WE CURRENTLY HAVE STRONG MOMENTUM IN ALL KEY MARKETS aa Scandic
Slide 35: Market growth initiatives
• Brand experience • Guest loyalty • Direct distribution • Digital journey • SPOO (Scandic Process of Optimization) • Extensions and refurbishments 35
Slide 36: Bolstering position as the Nordic player
152 hotels 29,700 rooms Bolstering position as the Nordic player 71 hotels 10,600 rooms Expected run-rate adjusted EBITDA synergies of SEK 180-220 m 36
Slide 37: Rica synergies
Large synergies potential enabling Estimated synergies at acquisition significant value creation Synergy area MSEK Status • Rica margins pro forma 2013 6.0% Head office and purchasing • Scandic Norway 9.9% 80 savings • Rica largest operator in Norway Other synergies and margin – significant economie
Slide 38: Signed pipeline of new hotels
Hotel # Rooms Scandic Gällivare (franchise) 80 Haymarket by Scandic, Stockholm 405 2016 Scandic Aalborg City 168 Scandic Continental, Stockholm 392 Scandic Vaasa 140 Scandic Bergen Flesland 304 2017 Downtown Camper by Scandic, Stockholm 456 Hotel Norge by Scandic, Bergen 420 Scandic Lillestrøm, Oslo
Slide 39: Number of rooms and signed pipeline
No. of rooms 45,000 +3.4% 44,000 43,000 +2.0% 42,000 41,000 40,000 39,000 38,000 37,000 36,000 35,000 2015 Openings Exits 2016 Pipeline 2017 Pipeline 2018-2020 No. rooms Openings Exits Signed pipeline Signed pipeline as % of total no. rooms (incl. extensions) 39
Slide 40: Proactive, strategic and disciplined network expansion
Proactive development of destinations together with communities, industry organizations and landlords Proactive, strategic and Further strengthening our already disciplined market-leading network through strategic expansion in key destinations and white spots approach to network Disciplined approach
Slide 41: Development criteria for new builds
Development criteria for new builds • ≥ 200 rooms • > SEK 75 m of revenue per hotel • EBITDA margin of at least 15% at hotel level • Average capex of SEK 200k – 280k per key • Target ramp-up period of 18-36 months 41
Slide 42: German expansion opportunity
Attractive market fundamentals No clear market leaders Natural Leasing model is the predominant and German market preferred model among German real expansion estate investors and developers 800,000 rooms opportunity… High appreciation of Scandic brand and Nordic identity Large stable base of domesti
Slide 43: Germany: proven track record
Scandic today 2 Berlin 1 Hamburg Hamburg Berlin Proven value proposition and 3 hotels Dusseldorf with RGI and margins above peers Realized synergies from a second …with a hotel in Berlin proven track Target both new builds and conversions Cologne where smaller acquisitions could also record be taken
Slide 44: Property investments: why, how, when
WHY? HOW? WHEN? • Scandic is a hotel company • Internal team focused on • Recruit Head of Real Estate with a leasing model property investments H2 2016 • Stay competitive by realizing • Capital allocated to certain and • Investments could be made new hotel opportunities selected investment cases ove
Slide 45: Value creation process
VALUE CREATION PROCESS 1-4 YEARS INVESTMENT TARGETS EXIT STRATEGY ACQUIRE SELECTED HOTELS Property Revenue SALE LEASE BACK extensions enhancement • Non-Scandic hotels • Secure strategic Ramped-up hotels Active Shareholder Scandic hotels with long lease Negotiate management value Improved agreements
Slide 46: Engaged people and strong culture
ENGAGED PEOPLE AND STRONG CULTURE Attractive Good financial The #1 Nordic Attractive Nordic The commercial variable lease Significant momentum hotel company hospitality and operational model with growth and resilient with a well- industry leader control of opportunities historic invested network val
Slide 47: Our commercial agenda
OUR COMMERCIAL AGENDA Thomas Engelhart, CCO
Slide 48: Commercial agenda priorities
In 2017, we will start a journey to not To secure customer ownership, data only be the number one brand, but to and controlling distribution are becoming own 3 targeted brand positions that increasingly important. In this context, drive sales in the minds of customers. we will launch a new loyalty p
Slide 49: Outside-in approach to design strategies and products
WE USE AN OUTSIDE-IN APPROACH TO DESIGN OUR FUTURE STRATEGIES AND PRODUCTS SOCIAL MEDIA REVIEWS MARKET SURVEY: TRAX CUSTOMER INTERVIEWS SGS/NPS MARKET DYNAMICS. OUR CULTURE AND BRAND PLATFORM BE CARING HOTEL BE YOU FoR ne BE BOLD ea PEOPLE | "EAPRO 49 | 2} 2) =| > As Ley RELATIONSHIPS STRONGER CUSTO
Slide 50: Consumer trends
EMPATHETIC STATUS SECURITY SEEKERS SOCIONOMICS BETTERMENT LIGHTWEIGHT NOMADS BRAND GOVERNMENT RESIDENTIAL LOVE OF LOCAL INTERACTIVE SLEEP IS THE NEW ENERGY SHARING MOBILE FIRST POWER TO THE PEOPLE FUNCTIONAL FOOD MEANINGFUL BREAKFAST FOR DINNER QUALITY OF LIFE HEALTH CURRENCIES OF EXCHANGE DIGITAL 2
Slide 51: Market dynamics
MOBILE FIRST 1/3 OF GLOBAL E-COMMERCE TAKING back CONTROL CLOUD VERTICAL PARITY LAWSUITS PROCUREMENT LEAD TIME ANALYTICS AGILE POWER OF PARTNERSHIP AIRBNB PRICE DIMMING OTA LANDSCAPE RANKINGS & PRODUCT DEVELOPMENT REVIEWS CUSTOMER RELATIONSHIPS SOCIAL MEDIA DISRUPTIVE MARKETING BIG DATA CLOSED GROUP
Slide 52: Commercial organization
CCO Commercial Group & Brand & Guest Optimization & E-commerce & Loyalty International Communication Journey Revenue Marketing & Partners Sales Management 52
Slide 53: Recurring success factor behind top line resilience
. - RECUR THE SUCCESS FACTOR BEHIND THE RESILIENCE OF SCANDIC’S TOP LINE
Slide 54: Broad customer base
Room nights Corporate customers Leisure groups Group Meetings & 10% Government leisure business corporate groups 15% Broad Individual 50% customer corporate base 25% Sports & Individual Individual organizations leisure leisure Meetings & corporate groups 54
Slide 55: Corporate contracts
Contracts 5,200 17% of corporate business revenue is governmental business 2016 June LTM of top 500 companies in each 2,600 60% Nordic country have corporate contracts with Scandic 800 of top 500 customers renew their Leisure Meetings Corporate 95% corporate contracts every year 55
Slide 56: Room nights from largest contracts
Room nights from 10 largest contracts 0 20,000 40,000 60,000 80,000 45% of room nights from top100 accounts in each market of total 16% corporate accounts 56
Slide 57: Consultative selling and sales culture
• Consultative selling • Trust and long-term relationships • Sales culture • Scandic value proposition • Mid-market brand • Easy to do business with • One-stop contracting …and with potential for more growth through cross-market optimization and international sales 57
Slide 58: A brand with a mission
A BRAND WITH A MISSION TO CREATE GREAT HOTEL EXPERIENCES FOR THE MANY PEOPLE
Slide 59: One brand story
One brand story Preferred by corporate Award- travelers winning CSR Conceptualized High brand awareness Trusted Welcoming, friendly & accessible Preferred by leisure travelers Consistent 59
Slide 60: Unique value proposition: Downtown Camper
• Hotels and venues for the more discerning and lifestyle-oriented audience A unique value Storytelling Stylish SOCIAL MEDIA proposition and EXPERIENCE DESIGN driven • Positioned under its own name endorsed recognizable by by Scandic the signature Surprising SHARING SEE & • Addressing new factors SE
Slide 61: Nordic customer survey
• 4,000 respondents in the Nordics • Identify the true drivers for choice and willingness to pay • Establish direction our future product development, communication and guest focus areas in our operations 61
Slide 62: Scandic's position
What makes people choose and pay for a certain hotel? • Emotional experience • Provides great service and makes guests feel special • Reliability and the “you-know-what-you-get” factor Scandic’s position Scandic was confirmed as the leading brand driven by functionality, reliability, service and fri
Slide 63: Mobile mid-life and millennials
Mobile mid-life & millennials The modern traveler and explorer, 25-55 years old • Leisure guest • Business guest • Meeting booker 63
Slide 64: Great service, food and room experience
GREAT • A welcoming and SERVICE personal atmosphere EXPERIENCE GREAT • Best breakfast in town FOOD • Social bar and lounge EXPERIENCE GREAT • Room design and features ROOM • Sleep experience EXPERIENCE 64
Slide 65: Product initiatives
• Inspiring Nordic • Room design and offering • Breakfast • Meeting concept • In-room entertainment • Online check-in • Mobile keys • Digital newspapers • F&B sales club 65
Slide 66: A new loyalty program
ANEW LOYALTY PROGRAM TO BE LAUNCHED END OF 2017 Na Ky {
Slide 67: New loyalty program principles
Increased flexibility Instant gratification & Going beyond the core with & personalization motivational techniques service offerings Empower customers through Inspire & innovate through Taking social & mobile innovation the strength of the crowd environmental responsibility 67
Slide 68: Scandic Friends loyalty program
LAUNCH 2008 LARGEST IN ~1.8 MILLION ~40% SCANDIC ~40% OF THE NORDICS MEMBERS EARN & BURN WEB BOOKINGS ROOM REVENUE 5 LEVELS CUSTOMER RESTAURANT VOUCHERS COMMUNICATION WEEKEND DISCOUNT CUSTOMER- HIGH REDEMPTION RATE & INTERACTION PARTNER OFFERS DRIVEN INSIGHT 68
Slide 69: Loyalty program objectives
Drive brand engagement and secure customer ownership Drive revenue Control our business 69
Slide 70: Digital by nature, omni-channel loyalty
Deliver a seamless and Digital by nature omni-channel experience Build brand engagement From rational to emotional loyalty and true loyalty Personalized and relevant 1-to-1 communication and offerings Pick & mix with instant benefits A motivating program structure and model based on total spend and
Slide 71: Drive engagement, revenue and control
• Build greater brand engagement Drive brand engagement and • Reduce reliance on points / discounts secure customer ownership • Increase brand exposure and NPS • Drive reach • Move existing customers up “spend bands” • Win back profitable customers and decrease churn Drive revenue • Increase custome
Slide 72: A distribution landscape with challenges and opportunities
A DISTRIBUTION LANDSCAPE WITH CHALLENGES AND OPPORTUNITIES
Slide 73: Connect the right partners to the right customers
CONNECT the right partners to the right customers at the right Time Price Terms 73
Slide 74: Distribution strategy
Visible and bookable in all customer- preferred channels Drive reach and acquire new customers through selected distribution partners Leverage market transparency and optimize revenue and bookings through our controlled channels Strengthen customer relationships by working with • Big data • Masterin
Slide 75: One platform
• Revenue management process and tools are automated • A platform with established work processes One for internal alignment and optimization platform • 9 clustered function centers • SiteMinder implemented at all hotels to drive reach and secure price quality • New call center partner for all marke
Slide 76: Controlled distribution share of room nights
~70% controlled distribution Share of room nights, FY 2015 • Strong growth in visits and Contracted bookings on Scandic’s website leisure Online travel 7% • High conversion in own web agencies (OTAs) 13% • Growth in OTAs’ relative share, Hotel direct coming from a lower volume 36% Global distributio
Slide 77: Distribution priorities
• Implement next generation revenue management system • Develop revenue management for functional spaces • Drive international volume and reach • Work actively with closed group offerings • Shift hotel direct and call center volume to Scandic’s website • Focus on net profitability of revenue • Acqui
Slide 78: Digital marketing investments
• Shift investments to SEO, SEM and PPC • Build a more retail-like experience • Complete implementation of pre- during-post-stay communication • Explore and join forces with partners in product development • Further optimize and enrich content in own and paid channels 78
Slide 79: Scandic has been digitized for years
SCANDIC HAS BEEN DIGITIZED FOR YEARS AND HAS A SOLID PLATFORM TO EXCEL FROM
Slide 80: Shifting customer behavior
New ways OTAs and Value Shifting Customization of building fragmentation Strengthened proposition for customer & competitive of value talent attraction mobile mid-life behavior personalization edge chain & millennials 80
Slide 81: Technological prerequisites and dedicated management
Financial capabilities Great technological Dedicated management to invest in a competitive prerequisites in place and new digital expertise digital offering 81
Slide 82: Digital journey priorities
① Activate the potential related to the area of interactions Deliver an interactive, smart, seamless, inspiring and hassle-free customer journey ② Increased focus on data-driven insights and ways of working Provide the opportunity to become truly data driven to improve reach and secure customer owne
Slide 83: Focus in our digital journey
Focus in our Reach Experience Optimization digital journey Cross-functional Automation and integration and efficiency in agility driving operations speed Strengthen 5 main areas of digital A common capability digital strategy Data-driven Digitally-savvy for Scandic in customer employees all business
Slide 84: Commercial agenda conclusions
• Recurring business will continue to be a major focus • Focus on data and agility are instrumental for our strategies and execution • With a new web platform, loyalty program and digital strategy, we are in a strong position to – drive growth – control distribution – strengthen brand engagement • K
Slide 85: Jens Mathiesen, Head of Denmark
Jens Mathiesen, Head of Denmark 85
Slide 86: Back end industrialization, front end great hotel experiences
Back end – industrialization Front end – great hotel experiences 86
Slide 87: Strong uniformed platforms
Strong Optimal Tight cost uniformed effects from management platforms scalability 87
Slide 88: Transparency and data access
TRANSPARENCY & DATA ACCESS 88
Slide 89: Cost transparency and common systems
• Cost per sold unit • Centralized shared service centers • Common system for consolidation – Reporting – Planning – Follow-up – Best practice • Transparent accounting 89
Slide 90: Profit monitoring and KPIs
• Monitor profits by department • Strong follow-up process for daily, weekly and monthly reporting (revenue, working hours and profit conversion) • This has fostered a strong focus on KPIs such as – revenue/working hour – breakfast guests/working hour – cleaned rooms/working hour – target GOP 90
Slide 91: Target GOP report
Scandic Target GOP Report 90 % 139 SEK 90% 90% 25% 50 % March 2014 Actual v Plan Actual Revenue Actual Actual Actual Actual Actual Target Target Target Target Target Target Target Target Target Rooms F&B Other Overhead Total Actual GOP Target GOP Target Incremental GOP Conversion Total Revenue Movem
Slide 92: Responsibility with support from central functions
CEO Responsibility with support Country Heads from central functions District District District District District Director Director Director Director Director Sales & Marketing GMGM GM GMGM GM GM GM GM GM GM GM GM GM GM Revenue Management GM GM GM GM GM GM GM GM GM GM Finance & Procurement GM GM GM
Slide 93: Sharp decline in a market
Sharp Hotel New decline in conversion opening a market 93
Slide 94: Case: Stavanger - sharp decline in a market
CASE: STAVANGER - SHARP DECLINE IN A MARKET ze Tae rari a PR. a 94
Slide 95: Stavanger RevPAR development
RevPAR development/month • Variable rents (% change LTM vs. LTM previous year) • Changed commercial plan -20% with the use of data • Maintained price leadership position Scandic Stavanger -30% • Adjusted staffing and mitigated costs Stavanger comp set • Maintained profitable operations -40% Sep Oct
Slide 96: Stavanger KPIs then and now
KPIs THEN NOW Revenue SEK 45 m SEK 70 m Ebitda Negative SEK 8 m (11%) RGI 0,60 0,90 • New and clear commercial strategy – Terms and number of leisure contracts – Larger base of corporate business) • Full synergy effects / shared services 96
Slide 97: New hotel opening case
• Hotel profitable after first month • Clear commercial strategy in place 12 months before opening • GM with full focus on operational setup • Both top line and GOP performing above expectations • RevPAR above market first month • Projected to be the largest EBITDA contributor in the portfolio 97
Slide 98: Program for large renovations and openings
Example: Program for large renovations & EBITDA ramp-up of a new hotel openings of new hotels • Hotel destination blueprint • Scandic project model • Opening day / handover • Ramp-up commercial • Follow-up Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Close to 50 hotels ram
Slide 99: SPOO
SPOO Learning from each other what we’re already good at 99
Slide 100: Current focus areas
Current focus areas F&B operations Housekeeping Technical services Front desk operations 100
Slide 101: Back end industrialization, front end great hotel experiences
Back end – industrialization Front end – great hotel experiences 101
Slide 102: Scandic
Scandic