Scandic Hotels (Buy, TP: SEK52.00) - Strengthening RevPAR outlook
The seasonally weak Q1 broadly matched forecasts, but more importantly Q2 started off with a healthy recovery in Nordic hospitality demand, driving occupancy and room rates. We still see Scandic Hotels returning to adjusted net profit and FCF generation in 2022e, and believe it could get close to its 11% adj. EBITDA margin target in 2023e on Nordic RevPAR 8–15% below the 2019 level. We reiterate our BUY and SEK52 target price on slightly higher forecasts following the results.Scandic Hotels Group AB is a Sweden-based company engaged, along with its subsidiaries, in the operation of hotels. The Company's main market in which the Group operates in: Sweden, which includes Swedish hotels that are operated under the Scandic brand; Norway, which includes Norwegian hotels that are operated under the Scandic brand, and Other Nordic countries & segments include hotel operation in Belgium, Denmark, Finland, the Netherlands, Poland and Germany, as well as the hotel concept HTL, which is operated by the sub-group HTL Hotels. The Company operates a network of approximately 224 hotels and almost 42,000 hotel rooms in seven countries. Scandic Hotels Group AB is a wholly owned subsidiary of Sunstorm Holding AB.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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