Update shared on 17 Dec 2025
Fair value Increased 4.16%Analysts have raised their price target for Scandic Hotels Group from approximately SEK 89 to SEK 93. This change reflects upgraded expectations for faster revenue growth, improved profit margins, and a more attractive future price to earnings multiple.
What's in the News
- Opened Scandic Stuttgart Europaviertel, a 174 room property that becomes the company’s eighth hotel in Germany and supports its target to add about 10,000 new rooms by 2030, including around 3,000 in Germany (Key Developments)
- Launched Scandic Victoria Floro in western Norway under a franchise model, adding 97 rooms and up to 150 person meeting capacity as part of a strategy to open 30 to 40 new franchise hotels and expand Nordic reach (Key Developments)
- Assumed operational responsibility for Dalata’s 56 hotels, covering roughly 12,000 rooms, under a management agreement that pays Scandic a 4% revenue based quarterly fee ahead of an intended acquisition of the hotel operations after a carve out process (Key Developments)
- Signed a long term lease for a new hotel with up to 328 rooms in downtown Hamburg, Scandic’s third in the city, reinforcing plans to increase its portfolio by approximately 15,000 rooms by 2030 and deepen its presence in key German destinations (Key Developments)
Valuation Changes
- Fair value estimate increased slightly from about SEK 89.0 to SEK 92.7 per share, implying modest upside versus the prior assessment.
- Discount rate remained unchanged at 10.12 percent, indicating no revision to the assumed risk profile or cost of capital.
- Revenue growth was raised meaningfully from roughly 11.5 percent to 15.4 percent, reflecting stronger expectations for top line expansion.
- Net profit margin improved from about 5.4 percent to 6.2 percent, signaling a moderately more optimistic view on profitability.
- Future P/E was reduced notably from around 14.7x to 12.1x, suggesting the shares are now viewed as more attractively valued on forward earnings.
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