What's Happening?
Scandic has entered into a management agreement to oversee the operations of Dalata's 56 hotels, which encompass approximately 12,000 rooms. The agreement is set to commence on November 7, 2025, and will continue until the completion of a carve-out process
and Scandic's intended acquisition of the hotel operations. Under the terms of the agreement, Scandic will receive a quarterly management fee amounting to 4% of all revenues generated from the operation of the Dalata hotels. The existing management team at Dalata will maintain responsibility for day-to-day operations, with support from representatives of Scandic.
Why It's Important?
This management agreement and planned acquisition represent a significant expansion for Scandic, potentially increasing its market presence and operational capacity. The deal, valued at EUR 500 million, reflects strategic growth in the hospitality industry, with Scandic leveraging its financial resources to expand its portfolio. The acquisition could enhance Scandic's competitive edge, offering economies of scale and increased revenue streams. For Dalata, the agreement provides continuity in management while transitioning ownership, ensuring stability for employees and guests during the process.
What's Next?
The planned acquisition of Scandic's hotel operations is expected to be finalized after the carve-out process. The anticipated purchase price for the acquisition is EUR 500 million, subject to adjustments upon completion. This figure corresponds to an estimated enterprise value of approximately six times the adjusted EBITDA for 2024. Scandic intends to finance the acquisition through available cash and debt facilities.
