Scandic Hotels, the chain of 130 leased hotels put up for sale by Hilton, looks set to be a key part of expected consolidation in the Nordic hotel sector.
Although private equity companies, including Cinven, Permira and Sweden’s EQT are tipped as buyers, Home Properties, the former Capona, has also emerged as a candidate.
Home Properties last week sold its 39.3% holding in Norwegian hotel operator Rica to JER Holding, a vehicle controlled by Jan Rivelsrud, for SEK629m (Eu70m). Rivelsrud is the majority owner of Rica and plans to delist the company.
Petter Stordalen, managing director of Home Capital, the wholly owned subsidiary of Home Properties that owned the stake in Rica, said that the sale was pushed through as Home “sees no possibility of being able to use its ownership of Rica Hotels as a stage in the restructuring of the Nordic hotel market”.
Until the purchase of the Rica stake, Home had been a focused owner of hotels. It remains keen to become a manager as well as owner of hotels and wants a suitable vehicle. Scandic is ideal.