Update shared on 03 Dec 2025
Fair value Decreased 0.80%Analysts have trimmed their price target on Scandic Hotels Group slightly, lowering it by approximately SEK 0.70 per share. This reflects a modest recalibration of fair value assumptions while growth, margins, and the discount rate remain broadly unchanged.
What's in the News
- Opened Scandic Victoria Floro, the company’s first hotel in the Norwegian tourist destination of Floro, adding 97 rooms and meeting space for up to 150 participants as part of its franchise-driven growth strategy (company announcement)
- Launched updated group growth targets aiming to add about 10,000 new rooms by 2030, with roughly half under the Scandic Go brand in the economy segment and plans for 30 to 40 new franchise hotels (company strategy update)
- Expanded further in Norway with the opening of The Dock 69deg39 by Scandic in Tromso, the group’s sixth signature hotel, alongside signed agreements for five additional hotels totaling more than 1,400 rooms (company announcement)
- Continued German expansion with a long term lease for a third hotel in downtown Hamburg, offering up to 328 rooms and expected to open in 2028, supporting the goal to increase portfolio capacity by approximately 15,000 rooms by 2030 (company announcement)
- Agreed to assume operational responsibility for Dalata Hotel Group’s 56 hotels, around 12,000 rooms in total, under a management agreement effective November 7, 2025, with a 4 percent revenue based quarterly fee until a planned carve out and acquisition of the hotel operations in 2026 (company announcement)
Valuation Changes
- Fair Value Estimate decreased slightly from SEK 89.73 to SEK 89.01 per share, reflecting a marginal downward adjustment to the intrinsic value assessment.
- Discount Rate remained unchanged at 10.12 percent, indicating no reassessment of the company’s risk profile or cost of capital in the updated model.
- Revenue Growth was effectively stable at around 11.48 percent, with only a negligible numerical adjustment that does not alter the growth outlook.
- Net Profit Margin was effectively unchanged at approximately 5.41 percent, with a minimal technical revision that leaves profitability expectations intact.
- Future P/E was reduced slightly from about 14.83x to 14.72x, implying a modestly lower valuation multiple applied to forecast earnings.
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