The first hotel that started the Scandic chain was called Esso Motor Hotel. It opened in 1963 in Laxå, Sweden, and was popular because people were traveling more by car. The chain grew to 59 hotels in Europe by 1972. Esso then sold the hotels outside of Scandinavia, and the remaining 32 hotels, including five in Norway and Denmark, became the biggest hotel chain in Sweden in 1973.