What's Happening?
Scandic has entered into a management agreement to oversee the operations of Dalata's 56 hotels, which include approximately 12,000 rooms. This agreement, effective from November 7, 2025, will continue until the completion of a carve-out process and Scandic's
intended acquisition of the hotel operations. Under the agreement, Scandic will receive a quarterly management fee of 4% of all revenues generated from the Dalata hotels. The existing management team at Dalata will continue to handle day-to-day operations, supported by Scandic representatives. The acquisition is expected to be finalized after the carve-out process, with an anticipated purchase price of EUR 500 million, subject to adjustments. This price corresponds to an estimated enterprise value of approximately six times the adjusted EBITDA for 2024. Scandic plans to finance the acquisition through available cash and debt facilities.
Why It's Important?
This development is significant for the hospitality industry as it represents a major expansion for Scandic, a leading hotel operator in the Nordic region. The acquisition of Dalata's hotel operations will significantly increase Scandic's portfolio, enhancing its market presence and operational scale. For Dalata, this agreement provides an opportunity to streamline its operations and potentially focus on other strategic areas. The transaction also reflects broader trends in the hospitality sector, where consolidation and strategic partnerships are becoming more common as companies seek to optimize resources and expand their market reach. The financial implications are substantial, with the acquisition valued at EUR 500 million, indicating a strong confidence in the future profitability and growth potential of the hotel operations involved.
What's Next?
Following the management agreement, the next steps involve the completion of the carve-out process, which will pave the way for the final acquisition. Stakeholders will be closely monitoring the integration process and the financial performance of the hotels under Scandic's management. The successful execution of this acquisition could set a precedent for similar deals in the hospitality industry, potentially influencing future mergers and acquisitions. Additionally, the financial markets will be attentive to how Scandic manages the financing of this acquisition, particularly in terms of leveraging available cash and debt facilities.
