Cardiff Oncology shares plunge after Q2 earnings miss
Investing.com -- Shares of Scandic Hotels Group AB (STO:SHOT) jumped 10% following the company’s announcement of its financial targets for 2025-27 and its strategy for 2030.
The Nordic hotel chain laid out an aggressive growth plan, aiming to strengthen its market leadership in the region and expand selectively in Germany.
The company’s ambitious financial goals include achieving organic net sales growth of more than 5% annually, an adjusted EBITDA margin of over 11% per year, and maintaining a net debt to adjusted EBITDA ratio of less than 1x.
Additionally, Scandic Hotels intends to distribute over 50% of its net results, excluding the effects of IFRS 16, back to shareholders as dividends.
As part of its long-term strategy, Scandic Hotels plans to solidify its number one position in the Nordics by adding approximately 7,000 rooms to its lease portfolio. The company also targets selective expansion in Germany, focusing on the top ten largest cities with an addition of around 3,000 rooms to the lease portfolio.
A key component of its growth strategy is taking a leading position in the fast-growing and profitable economy segment through its Scandic Go brand, which is expected to account for roughly 50% of signed new rooms.
To further drive growth, Scandic Hotels is looking to broaden its Nordic presence with low-risk, high-profitability expansions through 30-40 new franchise hotels.
The company also aims to enhance revenues and guest loyalty by offering more relevant and personalized experiences, coupled with improved operational excellence through investments in new ways of working.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.