Successful business models in Denmark – case 2
Skovsgård Hotel
Skovsgård Hotel is a cooperative social enterprise in the city of Skovsgård in the northern part of Jutland in Denmark.
Skovsgård Hotel has existed under the current conditions since 1992. It is owned on a cooperative basis by the citizens of Skovsgård and others, who think the idea is worth supporting. Around 1990 the former privately owened hotel went bankrupt several times, but a group of local committed citizens in Skovsgård got the idea to reorganize the hotel as a cooperative and social enterprise with the aim to ensure a hotel in Skovsgård, to creating jobs on special terms for people outside the labor market and to provide a framework for cultural projects and community center activities in Skovsgård.
The workplace is open for new employees who want a meaningful employment and to be part of the social working community.
Skovsgård Hotel is run by a staff of approximately 20 employees.
Besides the restaurant, where there is room for 50 diners, the hotel has 5 rooms for overnight guests, a smaler living room, a training room, a big party hall and a garden that is also used for events during the summer period.
Skovsgård Hotel also offers a PC repair shop, which opened in 2010, as a workshop for repair and sale of used computer equipment, pc`er, soft -and hardware.
Since 2010, Skovsgaard Hotel have been runing a special education scheeme for vunerable along with two other social enterprises located in the same area. The hotel is used regularly as a training place for vunerable people. Theese scheemes are supported by an fun in cooperation with the municipality. .
Skovsgård Hotel currently has 280 shareholders and a share capital of approximately 300,000 DKR. (40.000 €)
38% of the total revenue (3,7 million DKR – 500.000€ in 2012) come from sales on operations and the reminder part comes from the sale of services (jobtraining for vunerable people) to the municipality.
Skovsgård Hotels particular business model raises special challenges. It is difficult to run a hotel and restaurant and make ends meet, when you also employ vunerable people on special terms. In addition it is difficult to create profits to develop the company, as the strong attachment to the municipality sets limits on how much profit the hotel can generate. Therefore it is nessesary for the hotel to raise funding from eg. private foundations to be able implement major maintenance projects.
More information on Skovsgård Hotel at: www.skovsgaardhotel.dk
