Stockholm-based EQT has acquired the Nordic region's largest hotel chain Scandic for EUR 833 mln. The deal includes a total of 132 hotel sites in Scandinavia, with 128 under the Scandic brand and three under the Hilton banner. The sale is expected to be finalised in April, pending approval by EU's market regulators. Hilton Hotels was advised by Citigroup Global Markets and Mannheimer Swartling.
Stockholm-based EQT has acquired the Nordic region's largest hotel chain Scandic for EUR 833 mln. The deal includes a total of 132 hotel sites in Scandinavia, with 128 under the Scandic brand and three under the Hilton banner. The sale is expected to be finalised in April, pending approval by EU's market regulators. Hilton Hotels was advised by Citigroup Global Markets and Mannheimer Swartling.
EQT, a private-equity house controlled by the billionaire Wallenberg family, has said it is planning to expand the Scandinavian chain. 'The plan is mainly for organic growth, meaning that we will establish more hotels in markets where demand exists,' said EQT's Johan Hahnel.
Scandic was bought in 2001 by UK-based Hilton Hotels Group to transform it into its chain of mid-range hotels in the Nordic region of Europe. The hotel operator was put up for sale last August, shortly after the British group re-merged with American Hilton Hotels, Swedish newspaper the Local reported.
Hilton Hotel's executive vice-president Robert La Forgia said the sale was in line with the firm's strategy to shift its revenue stream toward management and franchise fees, while cutting debt and improving the firm's credit profile. Hilton will retain a presence in the region, with three hotels in Finland, two in Sweden and one in Denmark.
