Scandic has signed a long-term turnover-based lease agreement with landlord Pandox for the takeover of a hotel in Nuremberg, Germany, in the first quarter of 2024. Strategically located close to the historic city center and central station, the hotel offers 311 rooms and meeting spaces for up to 850 people. Public areas include a restaurant area, bar, gym and wellness area. Pandox has recently completed a major renovation of the hotel, which reopened in 2023.
The Nuremberg area is Bavaria's second largest metropolitan area with approximately 1.3 million inhabitants. The region has grown rapidly in recent years and several international technology and innovation companies have established themselves in the area, creating increased demand from the business and meeting segment. The city also attracts a growing number of leisure travelers given the great cultural and historical heritage and the many major events that are found in close proximity to the hotel.
– This is another step in our focus on the German growth market. The takeover creates a good growth opportunity thanks to the hotel's strategic location in combination with a newly renovated property that meets the needs of the growing business and leisure segment. I am pleased that we are continuing to expand our well-established and long-term cooperation with our largest landlord Pandox, says Jens Mathiesen, President and CEO of Scandic Hotels Group.
– It feels great that we are continuing to expand in Germany and that we are strengthening Scandic's position in the European hotel market. The hotel is an excellent addition to our portfolio that strengthens our offering for business travelers who want to organize large 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 economic center and is investing and building for the future, says Michel Schutzbach, Head of Europe at Scandic Hotels.
During the renovation, Pandox has also made technical, sustainability-related investments and upgrades to the property. In 2023, the Nordic Ecolabel, the official Nordic Ecolabel, will be launched in Germany, which means that the company's hotels in the country can begin their journey towards Nordic Ecolabel certification. The operation of the new hotel will be Nordic Ecolabeled after the takeover.
– We are pleased to welcome Scandic as a tenant to our newly renovated and centrally located hotel property in Nuremberg. The lease agreement is a confirmation of our ability to create value by acquiring, developing and lifting underperforming hotel properties in an international environment. It is also a good example of our model where we use deep hotel knowledge and property expertise to transform hotel properties based on their unique conditions. With the agreement, we have secured an important step in the value journey and we look forward to working together with Scandic to further increase the value of both the hotel product and the hotel property, says Liia Nõu, CEO of Pandox.
The hotel will be operated under the Scandic brand. Following the takeover, the company operates seven hotels in Germany with 2,461 rooms.
According to the press release.
