Scandic Hotels Group AB: Solid Efficiency and Constructive Demand Outlook Offset by Profitability Constraints, Justifying Hold Rating

Jefferies analyst Adela Dashian maintained a Hold rating on Scandic Hotels Group AB today and set a price target of SEK95.00.

Adela Dashian has given his Hold rating due to a combination of factors related to Scandic Hotels Group AB’s latest quarterly performance and outlook. The company delivered revenue roughly in line with market expectations and generated a modestly better-than-forecast adjusted EBITDA margin, supported by solid operational efficiency and tight cost control, yet profitability remains relatively low and sensitive to external pressures.

At the same time, management pointed to a constructive near-term demand picture, with firmer bookings for Q2 driven by leisure travel, resilient corporate activity and a robust event pipeline, alongside steady progress in integrating the Dalata assets. However, lingering weakness in Finland, higher energy costs from adverse weather and unfavorable calendar effects temper the earnings momentum, which in Dashian’s view justifies a neutral stance rather than a more aggressive rating change at this stage.