Scandic Buys Restel’s Hotels (Finnish Hotel Chain – What Happens To IHG Branded Hotels In Finland?)

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Scandic, Nordic chain that was in the 2000’s for few years part of Hilton, today made an announcement that they would purchase all the Restel’s hotels (Finnish hotel chain).

Hotel Indigo Helsinki

Restel currently has 43 hotels in Finland mainly under Cumulus brand, although they also have hotels under IHG flags such as Holiday Inn, Indigo and Crowne Plaza.

Here’s an excerpt from Reuters (access the entire piece here):

Restel’s hotel operation, which it runs mainly under the Cumulus brand, had sales of around 203 million euros last year.

Scandic currently has 28 hotels in Finland and 230 in total, mainly in the Nordic region.

This deal will give us presence in 15 new locations in Finland and greater exposure in the growing leisure segment,” Aki Kayhko, managing director of Scandic Hotels Finland, said in a statement.


Not huge fan on Scandic. Their hotels tend to be bit too basic to my taste but good fit with this Finnish “Cumulus”. I just hope that they don’t terminate their agreement with IHG.

How many IHG hotels can you find in Sweden, Norway and Denmark compared to Finland? There’s one Crowne Plaza in Copenhagen….

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  • Matt

    Would be very surprised if Scandic would keep the IHG brands (unless they have a contractual commitment to do so for some specific period). A bit sad that the few options from the international chains in Nordic countries seem to just continue the become fewer and fewer.

    • I would say that they certainly have agreements in place for certain number of years. Is there really need for 10+ Scandics in Helsinki alone?

      • Matt

        In my view not at all but I guess Scandic may see it in a different way and their main local competitor (Sokos) has a huge number of hotels in Helsinki (especially if counting the Residor hotels that they also manage and represent in Finland). The Scandic CEO was pretty clear that there would be fast rebranding of the Cumulus hotels but he did not mention the IHG branded ones at all so hoping they will remain part of IHG for a while at least.

  • karl

    Would surely make more sense for Scandic to move it’s portfolio over to IHG and open up the Nordic countries to a worldwide market, however unlikely that may seem.

    • Matt

      Would be a nice development but agree it is unlikely. It seems more likely that Scandic are looking at a further international expansion. Their CEO was talking about Germany as the next step as it is a big market and (in their view) lacking quality hotel chains.

  • Markus Peura

    Interesting situation all in all: Scandic operates also 3 Hilton Hotels in Finland! So they have 2 competing chains under their umbrella after the deal… What we know is that Cumulus hotels will become Scandic, but no words yet about IHG-hotels… Hilton?

    • I got a word from IHG that they continue to operate under the current brands. Not sure how long the current agreements are for.

  • Rainier

    Nordic markets are hard for international chains.
    Scandinavians are very conservative to spend money, for big audience in Scandinavia the price is most important thing. Breakfast have to be included to total price as Scandic and most of the minor Scandinavian chains do.
    Radissons (which used to be Scandinavian) get most of negative feedbacks in Finland for that breakfast is not included in basic room price. It always a big surprise and shock for Finnish and as well other Scandinavians John Does.
    4 star hotel room should get for max. 100€ including breakfast. International chains are not interested in this situation. Furthermore Scandinavians are pretty lazy to spend some extra money at hotels.

    • The price point and the included breakfast are both important in Finland and difficult to meet for international chains.

  • Jani Hyppänen

    Will the authorities allow this deal to go on? For example at Helsinki Airport there will be 5 Scandic operated hotels (2 current Cumulus, 1 current HI, 1 Hilton and 1 Scandic to open soon)… The capacity at Scandic operated is huge compared to the other chains. Also in many cities around Finland there used to be Sokos, Restel and Scandic but soon only 2 of those remain. And the number of independent hotels in Finland is really low. Hope that the competition authorities will do something.

    My prediction: all of the IHG hotels in Finland will be Hiltons soon.