ANNUAL REPORT

INNOVATING PAYS OFF

2017 was yet another good year for Nordic Choice Hotels. The company delivered its best operating results ever and at Grand Travel Award we took home the most important prizes for best hotel company in Norway, Sweden and the Nordic region. One word defines last year’s developments: innovation. Pioneering work in multiple fields during 2017, such as the launch of the first full-fledged hotel app in the Nordics, the introduction of Sweet Dreams Stay, the collaborative campaign that lets guests do good while sleeping soundly, awards for being Sweden’s most innovative company in terms of HR and Europe’s most innovative in communication all meant that Nordic Choice Hotels made the top 10 of Norway's most innovative companies. Innovation has also been crucial for our new hotels. The opening of the affordable Comfort Hotel Bergen Airport set a new standard for what airport hotels can look like, while the new art and design hotel At Six and restaurant TAK have transformed Brunkebergstorg and taken Stockholm by storm, while just next door is the very pinnacle of guest-driven innovation in the hotel world - the new Hobo Hotel. If you look at the results there is no doubt about it: innovating pays off.

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Key figures

The guest journey

Cheapest on own website

Nordic Choice Hotels continued to stand up to third party channels’ demands for pricing parity between hotels’ own websites and external booking sites. www.choice.no still offers the cheapest prices for your hotel stay.

The guest journey

Social media

In 2017, we reached out to 100,000 fans. We had 48 million impressions, and guests watched more than 10,000 hours of our videos.

Nordic Choice Club

Membership growth

During the course of 2017, 254,000 new members joined Nordic Choice Club. We have also passed 1.5 million members in total. This is a milestone.

Nordic Choice Club

New partners

In 2017, Nordic Choice launched even more member benefits through four new partners. Royal Caribbean Cruises, Merida, STS alpereiser and Morris/Accent

Nordic Choice Club

In 2017, the Public member rate was launched, which offers a 5 % member discount on hotel rooms. Being a member pays - you always get a discount.

The guest journey

New app features

The NCH app makes it possible to book, pay and check in and out of hotels through your mobile phone. During the course of 2017, the app was updated with mobile key cards, a chat-with-reception feature and digital newspapers.

Food and drink

NOK 2901 million

Nordic Choice is increasingly investing in great culinary experiences. In 2017, our hotels saw food and drink revenues of NOK 2,901 million.

Trevpar

NOK 42

Total revenue per available room increased by NOK 42 in 2017 compared with 2016.

eBerry

Substantial digital investment

In 2017, Nordic Choice Hotels made a substantial investment in digital and technological innovation through its company eBerry. The launch of the first fully-fledged hotel app in the Nordic region was one of its biggest innovations.

Revenue

NOK 9,923 million

The 2017 results show that our revenues increased by 9.1% and amounted to NOK 9,923 million compared with NOK 9,096 million in 2016.

Satisfied guests

Increased guest satisfaction

Nordic Choice has an ever increasing number of satisfied guests. This drives growth. The guest loyalty index NPS (Net Promotor Score) has increased by 1.4 in 2017 and is 3.9 points better than the market average.

Operating turnover

NOK 827 million

Operating turnover increased by NOK 827 million in 2017 compared with 2016, which was partly driven by new capacity.

Multibranding

Nordic Choice Hotels operates 3 hotel chains and 24 independent hotels in more than 100 destinations in the Nordic and Baltic regions.

Planet

A new app for sustainable operations

In 2017 Nordic Choice implemented a new app to facilitate an easy way of registering and supervising the results of a hotel’s sustainable operations. Now the environmental focus is always on wherever the environmental coordinator is at the hotel!

WeCare Local

Nordic Choice Hotels established the WeCare Fund in 2016. The WeCare Fund amounts to 1 million NOK and is awarded each year to local projects on application. In 2017, 11 hotels had the opportunity to support the funding of their project, like Quality Hotel Residence with their very successful sustainable event called Vegan Weekend.

Food platform

Local EAT Award 2017

As initiator and sponsor of the Local EAT Award, Nordic Choice Hotels awarded the 2017 prize to Scandinavia's most sustainable food innovator for the fourth consecutive year. The winner was Hanna Olvenmark, whos has founded the company called “Portionen under 10’an” (“Servings for less than 10 SEK”). Olvenmark works to increase the knowledge among people in general about the possibilities to eat good, healthy and sustainable food without paying more than 10 SEK per serving. The winner received 100,000 NOK in prize money.

Planet

Environmental training for all hotels

Our environmental management department went on tour in 2017! Six environmental training summits across Finland, Norway and Sweden were conducted, focusing on sustainable operations at our hotels and gathering more than 300 environmental coordinators from our hotels.

Food platform

Food waste

Through the "KuttMatsvinn2020” initiative (Reduce food waste 2020), we further intensified the fight against food waste. In 2017, we established an industry indicator and introduced measurements at all hotels. For the first time, we managed to get quality numbers for food waste per food consuming guests and not just hotel guests. On average, NCH had 127 grams of food waste per food consuming guest in 2017, with the the Comfort brand wasted less with 73 grams per food consuming guest. Through the initiative, food waste in the hospitality industry will be reduced by an additional 20% up to 2020.

Fairtrade

Fairtrade fika

In a few hectic hours in May we served organic and Fairtrade coffee to more than 130,000 people in over 140 hotels, as part of the Fairtrade Challenge. The best hotel in NCH was Quality Hotel Waterfront, which in 2018 will send an employee to Løfberg's coffee cooperative in Honduras.

Food platform

ASC/MSC certification

We are the first hotel company in the Nordic region to become MSC and ASC certified. This means that fish and seafood we serve comes from sustainable fisheries - whether it is wild or farmed. In 2017 more than 90% of the salmon we bought in Sweden was certified!

Consumption

Ocean plastic

On their own initiative many hotels cleaned their neighborhoods and beaches free from garbage. Clarion Hotel Post in Gothenburg focused a lot of efforts in this work, inviting and including neighbourhood school classes in the initiative, giving lectures on the subject and spreading information in many different ways to customers, guests and the neighborhoods in Gothenburg.

Food platform

-1 ton of packaging

In 2017 we removed all single wrapped products from our hotels (excl. tea and coffee products in the guest rooms). That is, sugar sticks, single wrapped butter, etc. This equals a waste reduction of 1 ton of packaging.

Consumption

Reduced water consumption

We have reduced water consumption by 8.3 litres per guest night in 2017 compared to 2016. This means we have saved over 230,000 bathtubs of water.

More free range hens

Food platform

In 2016 we let free 37,000 chickens, by serving over 10 million organic eggs.

Resilient and fair coffee against climate change

Climate change gives lower coffee crops. Together with Löfbergs, we're working with women farmers in Honduras on scaling for Fair Trade and organic farms, so that more people will benefit from guaranteed minimum coffee prices and healthy agricultural practices.

Organic farming makes the plants stronger, tackling the climate change better.

Food platform

4.5 tonnes of pesticides

We served 3,400 cups of organic and Fairtrade-labeled coffee per hour. Because it is organic, it means we have reduced the use of pesticides by over 4.5 tonnes and reduced the use of fertilizers by almost 45 tonnes. All of the coffee we serve is also climate-compensated.

Inclusion

Placements

In 2017, more than 801 unemployed people were offered placements at one of our hotels through the our partnerships with, amongst others, NAV, the Swedish Public Employment Service, Samhall and Ringer i Vannet. 33.6 % transitioned into permanent employment after the end of their placements.

Sweet Dreams armband

1 500 000 NOK

All our hotels sell Sweet Dreams armbands made by women at one of the UNICEF centres we support. All profits go straight back to the centre. In 2017, this raised NOK 1.5 million. The project aims to provide the women with financial independence, and to help secure a safe future for them and their children. Additionally, we fund the centre’s ‘gate team’ who identify children who are victims of the sex trade, slavery and other forms of abuse.

Guests donate Nordic Choice Club points

450 000 NOK

In 2017, our guests donated 15 million bonus points to the Sweet Dreams project. We converted the points into cash, and were able to transfer NOK 450,000 to the project.

Diversity

LGBT network in the workplace

Nordic Choice Hotels joined forces with other trade and industry entitles, government and organisations to form a knowledge network for LGBT inclusion in the workplace. The goal is to become the most open and inclusive workplace in the Nordic region.

Equal opportunity

63% of all employees are women

65% of all department managers and 52% of all hotel managers are women. 4 out of 9 members of Corporate Management are women.

Sweet Dreams

NOK 5,250,000 buys 340,000 safe nights

In September 2017, Nordic Choice launched the Sweet Dreams Stay concept, which aims for us and our guests to work together to help ensure that even more children who are the victims of human trafficking get a safe night’s sleep. For each night that a guest turns down daily housekeeping of their work, they help to save the environment through reducing the use of water and chemicals, and to show our gratitude we make a donation to UNICEF. During the course of the final four months of 2017, this resulted in an extra donation to UNICEF worth NOK 800,000. The project will continue at full scale during 2018. Nordic Choice Hotels also got involved in several other activities that generated donations. Filled with energy, courage and enthusiasm, 4,000 active employees participated in our annual fitness campaign pulseforUNICEF, we ran the Holmenkollstafetten relay race for UNICEF, and donated Christmas presents and Easter eggs to their good cause. These activities combined raised a total of NOK 5,250,000, which helped to secure 340,000 safe nights.

Humanitarian

80 000 gifts and 800 000 NOK

In December 2017, our hotels collected 80,000 Christmas presents for disadvantaged children and young people in local communities. Nordic Choice Hotels matched this with a donation of NOK 800,000 to UNICEF.

Culture

VK2018 - Yes, WeCare

This year’s biggest internal kick-off in the Nordics focused on caring about the world and the people around us. Once again, 3,000 Nordic Choice Hotels employees, partners and suppliers gathered in Stockholm. See video here.