Home: Issue 1 2012 › Setting the standard
Setting the standard
05/03/2012 | Channel: Business, Food & Drink
Committed to innovation and sustainability, Scandic Hotel Group has been helping to shape the hospitality industry for five decades
Today boasting 28,697 rooms, split across 153 hotels located throughout Sweden, Denmark, Finland, Norway, Estonia, Germany, Belgium, Poland and the Netherlands, the history of Scandic Hotel Group dates back almost 50 years. It was in 1963, at the edge of a road in Laxå, central Sweden, that the group opened up the Esso Motor Hotel. A modern idea for its time, devised by the oil company Esso, the hotel was purposely positioned in close proximity to travelers and was dubbed the ‘Motorby’ concept.
As car ownership increased so to did the demand for hotels and by 1973 Scandic Hotel Group had become the largest hotel chain in Sweden, branching out into several neighboring countries. During this time the group itself began introducing an increasing range of novelties to its guests, from television sets in hotel rooms, to on-site restaurants and swimming pool facilities, each influenced by changes that occurred due to the rapid growth of the service industry in the US .
In 1984, the business and its hotels were officially renamed Scandic Hotels and a year later it was sold to sole owner Ratos. Over the next 15 years the group developed by leaps and bounds, buying the Swedish locations of Reso Hotels in 1996, acquiring Finland’s third largest hotel chain, Arctia, in 1998 and then entering into a partnership with SAS Eurobonus in 1999, the same year the group bought a further 17 hotels, four of which are based in Estonia. By the year 2000, Scandic Hotel Group’s portfolio consisted of 120 hotels across ten countries.
In 2001, the next stage of the group’s development commenced when it was acquired by the Londonbased Hilton Group for the sum of £620.2 million. The integration into the Hilton family brought about the opening of the group’s first franchise hotel, Scandic by Hilton, in Bari, Italy, four years later, an event that precluded the introduction of a new, simpler pricing system across the brand, called FLEX & EARLY. It was then in 2007 that Scandic Hotel Group was purchased by private equity group EQT for the sum of 833 million euros. Following completion of the deal a new expansion phase commenced with several new hotels being added to the chain.
Catering for what it describes as the broad mid-market, Scandic Hotel Group’s hotels range from traditional roadside facilities to exciting flagship premises operating in downtown city locations, and provide employment for more than 6600 members of staff: “Scandic is what can best be described as a truly modern, highly conceptualised hotel company,” states senior vice president, and chief development officer, Martin Creydt. “Its newest hotels have each received remarkably positive feedback for their urban and stylish concept designs, so this is very much a strength that sets the group apart in what is an increase competitive landscape.
“The group’s business model to own almost every operation that features throughout its hotels is another success factor that allows it to constantly deliver on the promises it makes to its guests. There are also a number of concepts that Scandic Hotel Group has helped pioneer, which have gone on to become common features of the brand. In 2006 it launched its own mini-shop concept and today all hotels feature one of these outlets that are open 24 hours a day. A similar move to strengthen the customer experience occurred a year later when it made a concerted effort to open gym facilities in all hotels.”
Not only has the group long been leading the way in developing sustainable solutions, with the aim of one day offering nothing but carbon neutral accommodation, it has made a name for itself in recent years through its Scandic in Society targeted accessibility programme. Most of those employed by the group at its hotels live in the same area and it is for this reason that Scandic Hotel Group strives to make the surrounding vicinity a pleasant place to not only work, but live as well.
Scandic in Society first appeared in 2001 following an extensive consultation process. More about promoting active initiatives than simply donating money, the group aims to utilise this programme to create strong values that it shares with its team members, guests and customers. The ultimate aim is for Scandic Hotel Group to play its part in shaping a better future and this resonates down through every aspect of its business, from the donation of duvets to hostels and aid organisations, to the serving of only Fairtrade or UTZ label coffee products at each of its hotels in Finland, Denmark, Norway and Sweden.
In December 2011 the group proudly announced that, for the second year running, its sustainability fund was awarded a large financial sum to support the initiatives it hopes will contribute to a sustainable society. Over the last two years this fund has collected 100,000 euros from the group’s sale of water bottles, with ten cents per bottle sold donated to the fund. The recipients of support from 2011’s fund will be Rättviseförmedlingen (Equalisers) a Swedish organisation that proactively encourages and assists organisers to plan the world’s most diverse conferences, Polytecknisk Forening, a Danish company engineering developing solutions for a sustainable world, and Retoy. This third recipient creates environments and events where children learn about the substantial benefits of a sustainable future.
Throughout its history Scandic Hotel Group has aimed to set new standards for the modern hotel industry and it has done so through a unwavering commitment to innovation and an ambitious attitude towards product development: “The group is always introducing new concepts, several of which have been launched in recent months with great success,” Martin continues. “Across the brand an accessibility programme has been set up through the group’s website that allows guests with disability needs to attain important details about each hotel, namely the number of handicap rooms, what equipment these rooms feature and their location on the premises.
“Elsewhere, within the hotels themselves the group has introduced Scandic Water, a method of delivering filtered tap water to all its hotels in order to avoid the unnecessary and costly transportation of labeled bottled water. This isn’t the only exciting development within the food and beverage side of the business in recent years. Since 2009 the group has been working with celebrity chef Jamie Oliver to devise a range of healthy meals and snacks, each composed by the
man himself.”
Jamie’s first task was to develop an exciting children’s menu that is both delicious and balanced. Five main course options, a playful pick-and-mix salad option and a unique ice cream creation called Smush In! make up the ingredients needed to make the dining experience one the children of all ages can enjoy. Jamie’s influence and creativity has also extended to a range of food options that are served during business meetings and conferences staged at the group’s hotels. From fruity flapjacks and soup and deli buffets options to the ‘Meet and Eat’ antipasti of Italian-inspired ingredients the food items available hope to play a part in providing clients with a meeting location packed with inspiration and energy.
As has been the case since its first hotel opened in the early 1960s, Scandic Hotel Group continues to push the envelope when it comes to its new projects: “In October 2010 the group opened what remains its largest hotel, one with 562 rooms, in Berlin, Germany,” Martin says. “Given the scale of the project, it would be a lie to say there wasn’t an air of uncertainty about whether it would be a success or not in the short-term. However, despite these concerns, to date the hotel has achieved all its initial aims, already showing a small profit in its first full year of business. It certainly appears that Scandic Hotel Group, with its Nordic design elements and environmentally friendly philosophy, is an excellent fit for the German market. Its success in Berlin proves that the brand can be exported outside of its home markets and this will continue in 2012 with the opening of a 300 room hotel in Hamburg.”
As one would expect, the difficult economic conditions of recent times have brought significant challenges to the hospitality market, however it is quite telling that Martin feels an even greater challenge exists, one that sounds obvious, but can be unintentionally ignored: “The fact is that the traditional business man or woman has changed dramatically in terms of behaviour and needs over the years and what was tailor made for these individuals before no longer fits their lifestyles. The best examples come in the form of technological advancements where in-room features have evolved from simply providing a television to being able to offer access to and connectivity for smart phones, laptops and tablet devices. These are the types of small changes and upgrades the group is making across its hotels, all the while working to avoid the level of cost impact that could fall back on the customers themselves.”
What the slowdown in the market has allowed the group to do is take a more measured and calculated approach to each new project or new idea as it arises. As Martin explains, while this approach is necessary it doesn’t mean the group doesn’t have high hopes for the future: “One of the ambitions the group set itself some time back was to have increased its portfolio to a total of 200 hotels by 2013. While the group feels that meeting or missing this exact figure within this time span will not actually constitute either success or failure, what it does is make a statement of intent that this is a brand that still sees huge potential in the market and plans to grow as time goes on. The single most important thing for Scandic Hotel Group is for it to continue working to become one of the best loved and most respected consumer brands in the markets in which it operates. This is as true today as it will be for many years to come.”
Scandic Hotel Group
Employees
Services Hotel operator
As car ownership increased so to did the demand for hotels and by 1973 Scandic Hotel Group had become the largest hotel chain in Sweden, branching out into several neighboring countries. During this time the group itself began introducing an increasing range of novelties to its guests, from television sets in hotel rooms, to on-site restaurants and swimming pool facilities, each influenced by changes that occurred due to the rapid growth of the service industry in the US .
In 1984, the business and its hotels were officially renamed Scandic Hotels and a year later it was sold to sole owner Ratos. Over the next 15 years the group developed by leaps and bounds, buying the Swedish locations of Reso Hotels in 1996, acquiring Finland’s third largest hotel chain, Arctia, in 1998 and then entering into a partnership with SAS Eurobonus in 1999, the same year the group bought a further 17 hotels, four of which are based in Estonia. By the year 2000, Scandic Hotel Group’s portfolio consisted of 120 hotels across ten countries.
In 2001, the next stage of the group’s development commenced when it was acquired by the Londonbased Hilton Group for the sum of £620.2 million. The integration into the Hilton family brought about the opening of the group’s first franchise hotel, Scandic by Hilton, in Bari, Italy, four years later, an event that precluded the introduction of a new, simpler pricing system across the brand, called FLEX & EARLY. It was then in 2007 that Scandic Hotel Group was purchased by private equity group EQT for the sum of 833 million euros. Following completion of the deal a new expansion phase commenced with several new hotels being added to the chain.
Catering for what it describes as the broad mid-market, Scandic Hotel Group’s hotels range from traditional roadside facilities to exciting flagship premises operating in downtown city locations, and provide employment for more than 6600 members of staff: “Scandic is what can best be described as a truly modern, highly conceptualised hotel company,” states senior vice president, and chief development officer, Martin Creydt. “Its newest hotels have each received remarkably positive feedback for their urban and stylish concept designs, so this is very much a strength that sets the group apart in what is an increase competitive landscape.
“The group’s business model to own almost every operation that features throughout its hotels is another success factor that allows it to constantly deliver on the promises it makes to its guests. There are also a number of concepts that Scandic Hotel Group has helped pioneer, which have gone on to become common features of the brand. In 2006 it launched its own mini-shop concept and today all hotels feature one of these outlets that are open 24 hours a day. A similar move to strengthen the customer experience occurred a year later when it made a concerted effort to open gym facilities in all hotels.”
Not only has the group long been leading the way in developing sustainable solutions, with the aim of one day offering nothing but carbon neutral accommodation, it has made a name for itself in recent years through its Scandic in Society targeted accessibility programme. Most of those employed by the group at its hotels live in the same area and it is for this reason that Scandic Hotel Group strives to make the surrounding vicinity a pleasant place to not only work, but live as well.
Scandic in Society first appeared in 2001 following an extensive consultation process. More about promoting active initiatives than simply donating money, the group aims to utilise this programme to create strong values that it shares with its team members, guests and customers. The ultimate aim is for Scandic Hotel Group to play its part in shaping a better future and this resonates down through every aspect of its business, from the donation of duvets to hostels and aid organisations, to the serving of only Fairtrade or UTZ label coffee products at each of its hotels in Finland, Denmark, Norway and Sweden.
In December 2011 the group proudly announced that, for the second year running, its sustainability fund was awarded a large financial sum to support the initiatives it hopes will contribute to a sustainable society. Over the last two years this fund has collected 100,000 euros from the group’s sale of water bottles, with ten cents per bottle sold donated to the fund. The recipients of support from 2011’s fund will be Rättviseförmedlingen (Equalisers) a Swedish organisation that proactively encourages and assists organisers to plan the world’s most diverse conferences, Polytecknisk Forening, a Danish company engineering developing solutions for a sustainable world, and Retoy. This third recipient creates environments and events where children learn about the substantial benefits of a sustainable future.
Throughout its history Scandic Hotel Group has aimed to set new standards for the modern hotel industry and it has done so through a unwavering commitment to innovation and an ambitious attitude towards product development: “The group is always introducing new concepts, several of which have been launched in recent months with great success,” Martin continues. “Across the brand an accessibility programme has been set up through the group’s website that allows guests with disability needs to attain important details about each hotel, namely the number of handicap rooms, what equipment these rooms feature and their location on the premises.
“Elsewhere, within the hotels themselves the group has introduced Scandic Water, a method of delivering filtered tap water to all its hotels in order to avoid the unnecessary and costly transportation of labeled bottled water. This isn’t the only exciting development within the food and beverage side of the business in recent years. Since 2009 the group has been working with celebrity chef Jamie Oliver to devise a range of healthy meals and snacks, each composed by the
man himself.”
Jamie’s first task was to develop an exciting children’s menu that is both delicious and balanced. Five main course options, a playful pick-and-mix salad option and a unique ice cream creation called Smush In! make up the ingredients needed to make the dining experience one the children of all ages can enjoy. Jamie’s influence and creativity has also extended to a range of food options that are served during business meetings and conferences staged at the group’s hotels. From fruity flapjacks and soup and deli buffets options to the ‘Meet and Eat’ antipasti of Italian-inspired ingredients the food items available hope to play a part in providing clients with a meeting location packed with inspiration and energy.
As has been the case since its first hotel opened in the early 1960s, Scandic Hotel Group continues to push the envelope when it comes to its new projects: “In October 2010 the group opened what remains its largest hotel, one with 562 rooms, in Berlin, Germany,” Martin says. “Given the scale of the project, it would be a lie to say there wasn’t an air of uncertainty about whether it would be a success or not in the short-term. However, despite these concerns, to date the hotel has achieved all its initial aims, already showing a small profit in its first full year of business. It certainly appears that Scandic Hotel Group, with its Nordic design elements and environmentally friendly philosophy, is an excellent fit for the German market. Its success in Berlin proves that the brand can be exported outside of its home markets and this will continue in 2012 with the opening of a 300 room hotel in Hamburg.”
As one would expect, the difficult economic conditions of recent times have brought significant challenges to the hospitality market, however it is quite telling that Martin feels an even greater challenge exists, one that sounds obvious, but can be unintentionally ignored: “The fact is that the traditional business man or woman has changed dramatically in terms of behaviour and needs over the years and what was tailor made for these individuals before no longer fits their lifestyles. The best examples come in the form of technological advancements where in-room features have evolved from simply providing a television to being able to offer access to and connectivity for smart phones, laptops and tablet devices. These are the types of small changes and upgrades the group is making across its hotels, all the while working to avoid the level of cost impact that could fall back on the customers themselves.”
What the slowdown in the market has allowed the group to do is take a more measured and calculated approach to each new project or new idea as it arises. As Martin explains, while this approach is necessary it doesn’t mean the group doesn’t have high hopes for the future: “One of the ambitions the group set itself some time back was to have increased its portfolio to a total of 200 hotels by 2013. While the group feels that meeting or missing this exact figure within this time span will not actually constitute either success or failure, what it does is make a statement of intent that this is a brand that still sees huge potential in the market and plans to grow as time goes on. The single most important thing for Scandic Hotel Group is for it to continue working to become one of the best loved and most respected consumer brands in the markets in which it operates. This is as true today as it will be for many years to come.”
Scandic Hotel Group
Employees
Services Hotel operator