Scandic Hotels, Stockholm, bought its Scandinavian competitor Rica Hotels, Billingstad, Norway, for an undisclosed sum.
The purchase adds 72 hotels in Norway and Sweden to Scandic’s portfolio. The transaction is subject to regulatory approval in Norway and Sweden. Following completion of the transaction, it is expected that there will be an orderly transition of Rica hotels to the Scandic brand.
“This is a strategically important and forward-looking move,” says Svein Arild Steen-Mevold, Country Vice President of Scandic in Norway. “Combining with Rica will create a truly nationwide chain in Norway and increase our presence in Sweden.”
The Rivelsrud family, which currently owns Rica Hotels, will continue its involvement in the hotel sector through Rica Eiendom Holding, which owns 20 of the hotel properties in the Rica Hotels portfolio and will continue to be operated with Scandic as leaseholder.
“With the acquisition of Rica, we will rise to a new level in the Nordic hotel sector,” says Frank Fiskers, President & CEO of Scandic. “We will strengthen our portfolio with 72 highly regarded Rica hotels in attractive locations, and our guests will soon be able to choose from 223 hotels throughout the Nordic region.”