Esso Motor Hotels: The Transition to Crest and Scandic
During a period of strategic realignment, Esso decided to divest from its hotel interests outside of Scandinavia. This decision was driven by two primary factors: the saturation of the hotel market within European cities and the company's requirement for liquid capital to finance oil exploration projects.
The Transition to Crest Hotels
At the end of 1972, Esso began offloading its European assets. The hotel in Freiburg was sold, while nine hotels in Germany and one in Austria were leased to Crest Hotels. As part of the same agreement, other non-Scandinavian properties—including a ninth British hotel then under construction in Runcorn—were sold to Crest.
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By 1976, the 17 hotels acquired by Crest were rebranded as EuroCrest Hotel. Seeking to double its presence in Germany, Crest subsequently purchased the leased German and Austrian properties, which also adopted the EuroCrest branding. Eventually, Crest sold all former Esso Motor Hotels to other chains.
Expansion and Evolution in Scandinavia
Following the 1972 deal with Crest, Esso retained 32 hotels in Scandinavia, 27 of which were located in Sweden. While the company exited other markets, it continued to expand its footprint in Sweden and Norway, growing from 28 Swedish properties in 1974 to 44 by October 1976.
To target different customer segments, Esso developed parallel hotel brands. While Esso Motor Hotels served motorists, the company introduced Esso Scandic for city-based guests (without motorist services) and Esso Motels (such as those in Vara and Örkelljunga) which offered minimized services. Additionally, Esso operated roadside restaurants under the Taverna brand.
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By 1977, Esso Motor Hotels held a significant market position in Sweden, controlling a 25% market share despite owning only 10% of the total hotel capacity.
The Shift to Scandic Hotels
In 1983, Esso decided to exit the hotel industry entirely. At the time of departure, its Swedish portfolio consisted of 41 Esso Motor Hotels, 8 Esso Scandic Hotels, and 6 Esso Motels. These locations in Sweden and Norway were sold to a group of investors. Following the separation from the Esso company in 1984, the chain was renamed Scandic Hotels.
Other Scandinavian properties were sold throughout the 1970s. In 1974, Lego purchased the hotel in Billund, renaming it the Vis-a-Vis Hotel and later the Hotel Legoland. In 1979, the Glostrup hotel became the Glostrup Park Hotel.
Key Facts
- Divestment Reason: Market saturation in European cities and the need for oil exploration funding.
- Crest Deal: 17 hotels were eventually rebranded as EuroCrest Hotel starting in 1976.
- Swedish Market Power: In 1977, Esso held a 25% market share in Sweden.
- Brand Diversification: Esso operated Motor Hotels, Scandic (city), Motels (minimal service), and Taverna (restaurants).
- Final Transition: The Scandinavian operations became Scandic Hotels in 1984.
| Region/Entity | Acquiring Party | Resulting Brand/Name | Key Date |
|---|---|---|---|
| Germany, Austria, UK | Crest Hotels | EuroCrest Hotel | 1972/1976 |
| Sweden & Norway | Investor Group | Scandic Hotels | 1984 |
| Billund, Denmark | Lego | Hotel Legoland | 1974 |
| Glostrup, Denmark | N/A | Glostrup Park Hotel | 1979 |
Frequently Asked Questions
Why did Esso sell its hotels outside of Scandinavia?
Esso sold these properties because the European city hotel market had become saturated and the company needed cash to fund oil exploration.
What happened to the Esso hotels in Germany and Austria?
They were initially leased and later bought by Crest Hotels, eventually being rebranded as EuroCrest Hotels in 1976.
What were the different types of hotels Esso operated in Scandinavia?
Esso operated Esso Motor Hotels for motorists, Esso Scandic for city guests, and Esso Motels for those seeking minimized services.
When did the chain become Scandic Hotels?
The chain changed its name to Scandic Hotels in 1984, following its detachment from the Esso company.
Which company bought the Esso hotel in Billund?
Lego bought the Billund hotel in 1974, renaming it the Vis-a-Vis Hotel and later the Hotel Legoland.