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Nordic Hotel Brand Targets 'New' Traveler

Nordic Hotel Brand Targets 'New' Traveler

Vacation News » Europe Vacation News Edition | By Francys Vallecillo | September 19, 2013 8:31 AM ET



Scandic Hotels is investing one billion SEK ($154.8 million) to launch a new hotel chain in major Nordic cities targeting a "new generation of traveler." 

The new HTL brand will run as a sister company to the Stockholm-based Scandic and aim at the new increasingly digitalized, mobile culture, according to a company announcement. The hotel company plans to have 20 HTL properties opened within the next five years, with the first expected to open in Stockholm in May 2014.

"We have seen similar initiatives emerging internationally, but we are consolidating our position in the Nordic market by developing our very own concept," Anders Ehrling, CEO of Scandic, said in the release.

The focus on a new generation of travelers is a growing trend among hotel chains. Earlier this year, Accor announced plans to reposition its Pullman Hotels & Resorts brand to focus on "hyper-connected and mobile" travelers. Similarly, Dubai-based Emaar Hospitality Group announced its new brand Vida Hotels & Resorts aimed at young professionals and leisure travelers. 

The new HTL properties will mostly be new construction and building conversions, particularly of office buildings, the company states. The company has secured locations for two new hotels in Stockholm. 

The first Stockholm hotel will be the 275-room HTL on Kungsgatan. The second hotel is under construction on Upplandsgatan in partnership with AB Folkets Hus i Stockholm, according to Scandic. 

Scandic is the largest hotel chain in the Nordic region with approximately 160 hotels in eight countries and 30,000 hotel rooms, according to the company website. The company's portfolio includes 76 hotels in Sweden. 

"In recent years, we have invested many billions in expanding Scandic's hotel portfolio...we have also spotted an opportunity to grow through a new brand in a partially new segment," Mr. Ehrling said. "It is also the case that our Nordic capitals still need more hotel capacity to continue attracting the major international conferences."

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