Nordic Scandic Expansion

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1 Nordic Scandic Expansion Scandic is continuing to grow in the Nordic region, adding three new franchise hotels and renewing an existing franchise agreement. Three of the hotels are located in the city of Bergen in Norway and the fourth is in Arvika, Sweden. As part of our focus on developing and growing in the Nordic countries, we will be opening more new hotels in exciting locations over the next few years. We are extremely pleased that three new hotels in Norway and Sweden have chosen to join Scandic, cementing our reputation as the leading Nordic hotel chain, states Anders Ehrling, President and CEO of Scandic. Scandic Bergen City is renewing its franchise agreement. At the same time, two new hotels are being added in the thriving Norwegian city; Bergen Neptun (130 rooms) and Bergen Strand (98 rooms) will both become Scandic hotels around New Year. In Arvika, Sweden, Scandic is entering into a franchise

2 agreement with Oscar Statt, a central hotel with 88 rooms, a restaurant, bar, spa and conference facilities. The hotel will rebrand itself as a Scandic in Photograph: The Bergen Neptun, Bergen, Norway Scandic buys Oslo hotel Scandic continues to grow, now adding another hotel in Oslo. Today an agreement was signed between Fornebu Hotell AS and Scandic, confirming that the new hotel in the Fornebu business park will be a Scandic. The hotel has a fantastic outlook, both across the Oslo Fjord and to the future, with its location in this fast-expanding part of Oslo. With our own expansion in Norway continuing over the next few years, signing this long-term agreement for

3 Scandic Fornebu means adding another hotel with excellent prospects and a strategic location to our growing inventory, comments Frank Fiskers, President & CEO of Scandic in a press release today. Scandic Fornebu, Oslo. Photo: Scandic Hotels Fornebu business park will be home to the head offices of some of the largest companies in Norway with a total of almost 10,000 office workers. Fornebu Hotell AS is owned by IT Fornebu Eiendom and Utstillingsplassen Eiendom, a Hamar-based property company. The Narud Stokke Wiig firm of architects will design the spectacular hotel, which will have a floorspace of 17,000 m², 300 rooms, a restaurant and bar, a spa and gym and top-notch conference facilities for up to 1000 people. It is located on the shore of Rolfsbukta bay, with views across the Oslo Fjord, putting it only ten minutes away from central Oslo, with excellent communications. As chairman of Fornebu Hotell AS, I m proud and pleased that we have secured a leading hotel operator like Scandic to run the hotel, which will be the most important of Fornebu s portfolio of major real estate. As chairman of IT Fornebu, I m also happy that we will now be adding the last building along the seafront, completing this part of the commercial development of the Fornebu peninsula, explains Erik Løfsnes. The construction of Scandic Fornebu will start in mid-2010, with the hotel due to open in spring Top photo: Frank Fiskers, President & Chief Executive Officer,

4 Scandic Hotels. Photographer: bsmart Scandic Julia renovation Scandic Julia will undergo a full-scale renovation and extension, during which the hotel will be closed for 18 months starting from 1 December The result will be a hotel catering for the modern lifestyle and the conscious guest seeking smart solutions. Following the renovation, a modern hotel will open in central Turku during the spring of According to a press release the new Scandic Julia will feature 155 inspiring and airconditioned rooms, state-of-the-art conference facilities, and a restaurant. The hotel guests will also have a Scandic gym, two saunas and a garage at their disposal.

5 It is important that we strengthen our position in Turku, one of Finland s top three hotel destinations, to enhance Scandic s market position and brand in Finland. I m certain that the renovation of Scandic Julia, turning it into a smart and modern hotel, is one thing that will do just that, says Frank Fiskers, President and CEO of Scandic in the press release. Operated at Eerikinkatu 4 by Scandic, the property is mainly owned by Ilmarinen Mutual Pension Insurance Company. The main contractor in the renovation project is Palmberg Turku Oy, while Haroma & Partners Oy from Turku is the main architect. The hotel s interior will follow Scandic s design and environmental concepts. The value of the investment is approximately EUR 14 million. It is very positive that we are able to bring Scandic Julia s standards to the present-day level by expanding the hotel with 37 rooms and by updating the hotel s technology and service options. The renewed Scandic Julia will make an excellent addition to our offerings in Turku, where we already operate Scandic Plaza with 117 rooms, opened in 2000, says Aarne Hallama, Vice President of Scandic Finland. During the renovation, Scandics guests in Turku will be served by Scandic Plaza. Photo: Frank Fiskers, President & Chief Executive Officer, Scandic Hotels. Photographer: bsmart