• Rezidor float price set low

Rezidor Hospitality is to float by the end of this month with a valuation in the range SEK43 to SEK52 per share, which at the midpoint gives a market cap of SEK7.125bn or Eu784m.

The valuation is somewhat lower than many expectations despite the bullish market and turnaround in its Scandinavian home patch.

The press release announcing the range also indicated that Carlson is to raise its stake from 25% to 35% following the IPO, with Carlson paying SAS a price equivalent to the final offer price. The first day of trading in the shares is scheduled for November 28.

Rezidor is forecasting growth of 20,000 rooms between 2007 and 2009 and a 12% EBITDA margin over the business cycle.

Meanwhile, further evidence that the Nordic region is enjoying a bumper period at present was produced by the third quarter results of Norgani, the region’s biggest owner.

Norgani, which includes a couple of Rezidor’s hotels among its 78 properties, saw pre-tax profit for the first nine months leap to NOK344.4m from NOK234.9m for the same period in 2005.

The company said that, thanks to a recruitment drive that added 10 senior staff, it now had an organisation that was well suited to actively manage an increased portfolio and support additional growth. Under CEO Kjell Sagstad there are three main divisions: investment, property management and finance.

It is selling four Danish hotels for NOK686m by the end of the year.

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