Scandic to Open Hotel in Nuremberg, Germany

Scandic has signed a long-term, revenue-based lease agreement with landlord Pandox to take over a hotel in Nuremberg, Germany, during the first quarter 2024. Strategically located near the city's historic district and central station, the new hotel will offer 311 rooms and event facilities for up to 850 people. Shared spaces will include a restaurant, a bar, a gym and a wellness area. Pandox recently carried out a major renovation of the hotel, which reopened in 2023.

The greater Nuremberg area is the second largest metropolitan region in Bavaria with approximately 1.3 million inhabitants. The region has grown rapidly in recent years, and several international technology and innovation companies have been established in the area, increasing demand from the corporate and meeting segments. Nuremberg is also attracting a growing number of leisure travelers who are drawn by the city's rich cultural heritage and major events that have taken place in close proximity to the hotel.

- This is another step in our focus on expanding in the German market. The takeover is an excellent growth opportunity thanks to the hotel's strategic location and recent renovation to the property that will meet the rising demand in the corporate and leisure segments. I am also extremely happy that we are continuing to extend our well-established and long-term cooperation with our largest landlord, Pandox, says Jens Mathiesen, President & CEO of Scandic Hotels Group.

- It's fantastic that we're continuing to expand in Germany and strengthening Scandic's position in the European hotel market. The hotel is an excellent addition to our portfolio that will solidify our offering for business travelers looking to arrange larger meetings and events. Together with my colleagues, I look forward to opening Scandic's first hotel in Nuremberg, a city that has become an important financial center and that is investing in and building for the future, says Michel Schutzbach, Head of Europe at Scandic Hotels.

During the renovation, Pandox also made technical and sustainability-related investments and upgrades to the property. Earlier in 2023, the Nordic Swan Ecolabel, the Nordic region's official ecolabel, was launched in Germany. This means that Scandic's German hotels can begin their journey toward Nordic Swan Ecolabel certification. The operations of the new hotel will be certified by the Nordic Swan Ecolabel after the takeover.

- We are happy to welcome Scandic as tenant to our newly renovated and centrally located hotel property in Nuremberg. The lease agreement confirms our ability to create value by acquiring, developing and improving underperforming hotel properties in an international environment. It is also a good example of our model where we, through deep hotel knowledge and property expertise, transform hotel properties based on their unique characteristics. With the agreement, we have secured an important step in the property's value journey, and we are looking forward to work with Scandic to further increase the value of both the hotel product and the hotel property, says Liia Nõu, CEO of Pandox.

The new hotel will be operated under the Scandic brand. Following the takeover, Scandic will operate seven hotels in Germany with a total of 2,461 rooms.