Scandic is set to expand its presence in Germany with the opening of a new hotel in Stuttgart in the fourth quarter of 2025.

The company has entered a long-term, revenue-based lease agreement with AXA Investment Managers for the 174-room hotel in the city.

Scandic's strategic move aims to capitalise on this growth by positioning its brand to appeal to visitors attending events, meetings and local experiences.

Scandic Hotels Germany and Poland managing director Michel Schutzbach said: “We see good opportunities to grow in Stuttgart, and together with AXA Investment Managers, we’ll carry out a significant renovation of the hotel so that more guests can enjoy Scandic’s renowned hotel experience and brand.

“The hotel’s excellent location also provides easy access to key attractions such as the central station, the historic old town, events and nearby offices.”

The hotel will undergo significant renovations, incorporating technical upgrades and sustainability improvements.

These enhancements will be in line with Scandic’s operational standards and include environmental certification by the Nordic Swan Ecolabel, a testament to the brand's commitment to eco-friendly practices.

Upon completion, the new establishment will strengthen the company’s German portfolio, which will then encompass eight hotels with a total of 2,635 rooms.

Scandic Hotels Group president and CEO Jens Mathiesen said: “The expansion will strengthen Scandic’s presence in the German hotel market in an important financial centre where we see growing demand from both business and leisure travellers.”

Scandic has a network of around 280 hotels with 58,000 hotel rooms that are operational and under development at over 130 destinations.

In July, Scandic Hotels Group announced the expansion of its economy segment, Scandic Go, by transforming office spaces into new locations in Gothenburg and Umeå, Sweden.