Stockholm...ZZZ DREAMSCAPE HOTEL OCT 2019 17 LIMITED SERVICE STOCKHOLM Source: Swedish Agency for...

Stockholm Hotel Report 2020

Cover photo: Hotel Frantz, Mathias NordgrenPhoto on this page: Invest Stockholm, Jeppe Wikström

Foreword

This report was finalised before the global spread of the coronavirus

(Covid-19). The consequences of the spread, combined with the restric-

tions and recommendations from authorities and governments aiming to

reduce the spread of infection, have had dramatic consequences for both

travellers and hotels. Demand for hotel rooms in Stockholm and throug-

hout Sweden has fallen sharply during March.

Today, there is great uncertainty regarding the effects the coronavirus

will have on global travel. Historically, the demand of hotel rooms has

quickly recovered after various types of crises. Overall, however, there

is a significant risk that the growth up to 2024 will not be as good as

forecasted in this report

Omslagsfoto: XXXXXXX

Photo: Invest Stockholm, Henrik Trygg

S T O C K H O L M H O T E L R E P O R T 2020 S T O C K H O L M H O T E L R E P O R T 20206 7

Summary

• There is a strong demand for hotel rooms in Stockholm County and the growth rate in occupied rooms has increased over the last 10 years.

• Despite a strong expansion of the hotel room capacity during 2017, the occupancy rate in the county has stabilized at record levels.

• The potential growth in occupied rooms is increasing at a high rate, which means that the occupancy rate, average price and RevPAR in Stockholm City are forecasted to have a strong development until 2024.

• Annordia's assessment is that there is a potential demand that could carry an additional 2,000 rooms, apart from the already planned rooms, by 2024 with an occupancy rate in Stockholm city of approx-imately 71 percent.

• Leisure guests have accounted for 70 percent of the growth in occupied rooms over the past decade. In the City of Stockholm, leisure guests now occupy a majority of all hotel rooms.

• Nordic operators such as Scandic and Nordic Choice Hotels dominate the county's room supply.

• Average daily rates and RevPAR have developed weaker than in the rest of the country, which is partly due to the large expansion of hotel room capacity.

• There is a limited pipeline of hotel projects in central Stockholm in the coming five-year period, while the growth in hotel room supply will be relatively large in the county outside of the city.

• The relatively weak supply growth in the city is partly due to the fact that it is currently more profitable to invest in offices, for example, be-cause of historically high office rents.Photo: Bank Hotel, Danger Österlin

14

2. Supply

14 Weak growth in central Stockholm

16 Hotels develop more distinct concepts

17 Geographic distribution

18 Hotel classification

18 Breakdown by price range

20

3. Demand

20 Strong hotel market in Stockholm

21 High growth in occupied rooms

23 Continuously high occupancy rates

23 Varied growth in ADR

24 Weak growth in RevPAR

24 Unchanged seasonality

27 Stable share of foreign guests

12

1. Introduction

12 More people are traveling

12 Background

28

4. Future supply

28 Limited pipeline in central Stockholm

28 New actors in the county

29 Continued growth in Solna and Sigtuna

29 Planned changes to supply

38

6. Stockholm Business Alliance

38 SBA municipalities in a context

39 Planned changes to supply

42

7. Hostels, holiday villages and campsites

42 Supply

42 Guest nights and room revenue

44 Foreign guests

45 Average rate

45 Closing comment

32

5. Forecast 2020-2024

32 Introduction

32 The potential growth in demand

33 Stockholm is relatively cheap

34 Rising occupancy rates

35 Strong growth in ADR and RevPAR

35 Existing conditions for hotel investments

46

8. P2P rentals

46 Professionalisation of the services

47 Supply and demand in central Stockholm

48 Rates and revenue

48 P2P rental and the hotel market

50

9. Largest operators in the county

50 Nordic operators dominate

50 Biggest brands

52

Definitions

52 Hotel classification

Contents

S T O C K H O L M H O T E L R E P O R T 2020 S T O C K H O L M H O T E L R E P O R T 202010 11Photo: Miss Clara, Beatrice Graalheim


More people are travelingThe increased demand for hotel rooms is a conse-quence of increased travel both internationally and nationally. A large part of people who are traveling have to sleep somewhere and often it is in a hotel. For example, the number of guest nights at hotels in the EU totaled over two billion in 2019, which was just over 500 million more than ten years before.

The two most important factors behind the strong growth in travel and demand for hotel rooms are the increased trade and wealth. More trade within and between countries increases the need for business meetings, which in turn increases the number of busi-ness travelers with demand for hotel rooms. The fact that international trade gives rise to business travel can be illustrated with the number of arrivals of foreign business travelers to Swedish airports, which was about 2.4 million in 2018.

Increased wealth gives rise to more leisure travel, especially by tourists. The relationship between the level of GDP per capita and the number of guest nights in hotels per capita in Europe is very strong.

The number of arrivals of foreign tourists to Swedish airports amounted to 4.9 million in 2018, an increase of 135 percent over the past 10 years. There is also a big potential for continued growth. A simple calculation shows that if the countries in Europe which in 2018 had a lower level of per capita GDP, was at the same level as Sweden, the number of hotel guest nights in the EU would be over a billion more.

BackgroundThis report is produced in light of Stockholm's strong growth as a tourist destination and the increased de-mand for accommodation. Every two years, Invest Stockholm publishes a comprehensive account of all existing and planned accommodation options in Stockholm city and county.

This report also provides a forecast of hotel room demand between the years 2020-2024 in the City of Stockholm, as well as an overview of the 56 municipalities within the Stockholm Business Alli-ance (SBA).

Introduction

T H E D E M A N D F O R H O T E L R O O M S H A S I N C R E A S E D R A P I D L Y I N

S T O C K H O L M , S W E D E N A N D E U R O P E F O R A L O N G T I M E . I N

S T O C K H O L M , T H E N U M B E R O F R O O M S S O L D H A S R I S E N F R O M

4 , 2 0 0 P E R D AY 1 9 8 0 T O 1 6 , 7 0 0 P E R D AY 2 0 1 9 .

This report is produced by Annordia on behalf of Invest

Stockholm. Invest Stockholm is the City of Stockholm's invest-

ment promotion agency whose main task is to contribute to

increased sustainable growth by attracting investments and

establishments to the Stockholm region. Invest Stockholm is

also marketing Stockholm as an attractive city under the brand

Stockholm - the Capital of Scandinavia, and provide services

to the business community. The services aim to improve the

conditions of running, starting and establishing companies in

Stockholm and the region.

Photo: Invest Stockholm, Jeppe Wikström

1.



Weak growth in central StockholmThere are currently 177 hotels and almost 23,700 rooms in the City of Stockholm. The corresponding figures for Stockholm County excluding the city are 169 hotels and about 15,100 rooms. In total, the room capacity in the county amounts to approximately 38,700 rooms distributed across 346 hotels. The supply in the City of Stockholm has increased by approxima-tely 7,000 hotel rooms since 2010, corresponding to an average annual increase of approximately 3.8 percent. The previous decade, between 2000 and 2009, the ci-ty's supply increase was approximately 4,700 rooms, equivalent to an annual increase of about 3.7 percent. Thus, the growth rate in room supply in the City of Stockholm has remained stable for a long period.

In the last two years, the capacity increase in the City of Stockholm has been low compared to the record year 2017, when more than 1,800 rooms were added to the city's supply. It is also shown in Diagram D2.1 how the city's room supply relative to the county excluding the city increased sharply in 2017. Since then, the growth rate in available rooms has been higher in the county excluding the city which is a trend that is expected to continue

Supply

T H E S T R O N G E R P O S I T I O N O F T H E L E I S U R E S E G M E N T O N

S T O C K H O L M ’ S H O T E L M A R K E T D U R I N G T H E PA S T Y E A R S I S

R E F L E C T E D I N T H E R E C E N T L Y O P E N E D H O T E L S , W H E R E I N C R E A S E D

E F F O R T S A R E M A D E T O P R O V I D E A S P E C I A L G U E S T E X P E R I E N C E .

2.

90

100

110

120

130

140

150

160

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Inde

x 10

0=20

10

City of Stockholm County excl. city

D 2 . 1 : G R O W T H I N AVA I L A B L E R O O M S 2 0 1 0 - 2 0 1 9 C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

during the forecast period. In 2019, five new hotels opened in the City of Stockholm, with a total of about 500 rooms. The most recently opened hotels are Blique by Nobis, The Sparrow Hotel (formerly Hotel Drottning Kristina), Hotel Frantz (formerly Hotel Anno 1647), Hotel Gamla Stan and the win-dowless hotel Zzz Dreamscape Hotel, see table T2.1. The year before, Bank Hotel opened in premises pre-viously occupied by a bank on Arsenalgatan in central Stockholm. Bank Hotel and Zzz Dreamscape Hotel are the only two hotels that have opened within the CBD (Central Business District) in the past two years. The limited increase in capacity can be partly attri-buted to the high office rents in Stockholm's inner city, with record levels touching 10,000 SEK per squ-are meter. This has caused difficulties for hotels to compete for vacant premises when different uses are compared to each other.

HOTEL MONTH ROOMS SEGMENT MUNICIPALITY

STOCKHOLM HOTEL APARTMENTS BROMMA FEB 2018 53 LONG STAY STOCKHOLM

HOTEL POINT JUL 2018 40 SELECT SERVICE STOCKHOLM

BANK HOTEL AUG 2018 115 FULL SERVICE STOCKHOLM

APARTDIRECT GRÖNDAL OCT 2018 24 LONG STAY STOCKHOLM

COMFORT HOTEL KISTA NOV 2018 194 SELECT SERVICE STOCKHOLM

BEST WESTERN PLUS GROW HOTEL NOV 2018 176 FULL SERVICE SOLNA

STOCKHOLM HOTEL APARTMENTS SOLLENTUNA DEC 2018 60 LONG STAY SOLLENTUNA

THE STUDIO HOTEL DEC 2018 160 LONG STAY STOCKHOLM

ZLEEP HOTEL UPPLANDS VÄSBY JAN 2019 152 LIMITED SERVICE UPPLANDS-VÄSBY

HOOM HOME & HOTEL VEDDESTA JAN 2019 153 LONG STAY JÄRFÄLLA

THE SPARROW HOTEL (EX. DROTTNING KRISTINA) FEB 2019 88 FULL SERVICE STOCKHOLM

HOTEL GAMLA STAN APR 2019 81 SELECT SERVICE STOCKHOLM

BLIQUE BY NOBIS MAY 2019 249 FULL SERVICE STOCKHOLM

RAMILTON APARTMENTS HOTEL DANDERYD MAY 2019 70 LONG STAY DANDERYD

ARKADEN LONGSTAY HOTEL JUN 2019 47 LONG STAY SIGTUNA

APARTDIRECT SUNDBYBERG JUN 2019 36 LONG STAY SUNDBYBERG

EKEBYHOV HOTELL JUL 2019 60 LONG STAY EKERÖ

HOTEL FRANTZ (EX. HOTELL ANNO 1647) OCT 2019 48 FULL SERVICE STOCKHOLM

ZZZ DREAMSCAPE HOTEL OCT 2019 17 LIMITED SERVICE STOCKHOLM

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research

T 2 . 1 : H OT E L S T H AT H AV E O P E N E D I N T H E C O U N T Y D U R I N G 2 0 1 8 - 2 0 1 9

Rooftop bars have become more common in the design of new

hotels during the last years. The trend can be partly attributed

to the increasing market share of the leisure segment, and that

it gives hotels an edge compared to established competitors.

Photo: Winery Hotel

38,749T O TA L N U M B E R O F H O T E L R O O M S I N

T H E C O U N T Y, D I S T R I B U T E D A C R O S S 3 4 6

H O T E L S , A S P E R 3 1 D E C E M B E R 2 0 1 9 .

40%O F T H E C O U N T Y ' S C A PA C I T Y I N C R E A S E D U R I N G T H E L A S T T W O Y E A R S

H A S B E E N I N T H E L O N G S TAY S E G M E N T. A B O U T 6 5 P E R C E N T O F T H E

R O O M S H AV E B E E N A D D E D I N T H E C O U N T Y O U T S I D E O F T H E C I T Y.


Last year, seven hotels opened in the county exclu-ding the city, with a total of almost 500 rooms. It is noteworthy that five of the hotels are long-stay hotels where all units have a kitchen or a kitchenette. The supply of long-stay hotels has increased steadily for a long time, and in the last two years almost 40 percent of the total capacity increase in the county has been in the long-stay segment.

In addition to long stays, other types of housing in the same segment have also increased, where cor-porate housing and block rentals of private housing for companies have become more common. These apartments are not classified as hotels by Statistics Sweden and thus they are not visible in the accom-modation statistics regarding supply and demand. For example, Företagsbostäder has significantly increased its portfolio of apartments in recent years. During the same period, the number of applications to the rent tribunal to block rent apartments has increased from 59 units in 2015 to 101 last year. The trend with an increased supply of long-stay hotels and corporate housing may be partly attributed to the fact that com-panies in Stockholm County have a hard time finding accommodation for employees on temporary assign-ments. At the same time, major ongoing infrastructu-re projects such as the E4 Stockholm Bypass project are increasing the demand for temporary housing.

Hotels develop more distinct conceptsIn a large hotel market such as Stockholm, it becomes increasingly important for a hotel to find its niche and stand out from the crowd. Historically, busi-ness guests have accounted for the majority of hotel room demand, but in recent years a structural shift in hotel room demand, which is described in more detail in the next chapter, has increased the propor-tion of hotel rooms occupied by the leisure segment. Several lifestyle hotels have emerged because of this shift, primarily in central Stockholm, where ope-rators are investing heavily in the guest experience. The concepts have thus become even more impor-tant and distinct, and they often permeate the entire hotel. Operators who stick their neck out and crea-te unique experiences can be seen among the whole spectrum, where Upscale hotels such as Bank Hotel, At Six and Haymarket by Scandic as well as Mids-cale hotels like And Hotel and Hobo stand out. Se-veral of the hotels with distinct concepts that have opened in recent years are included in Scandic’s and Nordic Choice Hotel’s portfolios but are run under independent brands.

As the food and beverage offerings have become a more important part of the hotel guest experien-

ce, many hotels in Stockholm have also made efforts to invite the general public and have thus become important hubs for both planned and informal me-etings. As the social areas become more attractive, new possibilities have also emerged regarding the

design of the guest rooms. For example, there are several new hotels in central Stockholm where all or many of the rooms are windowless. Instead these hotels offer spacious and well-designed public areas. Examples of these are Haymarket by Scandic where 75 out of 405 rooms lack windows, and Hotel With Urban Deli which has 106 windowless rooms. Today, the hotel's public areas serve as a living room for the guests where you can create social hubs for those who want to work and for those who want to relax. Thus, the hotel is not only a place to stay, but also an impor-tant meeting place.


CITY DISTRICT HOTELS ROOMS % OF ROOMS

NORRMALM 67 11,193 47.3%

SÖDERMALM 40 3,606 15.2%

ÖSTERMALM 19 2,131 9.0%

KISTA-RINKEBY 11 1,600 6.8%

BROMMA 13 1,472 6.2%

KUNGSHOLMEN 5 1,243 5.3%

ENSKEDE-ÅRSTA-VANTÖR 6 869 3.7%

ÄLVSJÖ 6 754 3.2%

HÄGERSTEN-L IL JEHOLMEN 4 388 1.6%

SKÄRHOLMEN 2 226 1.0%

HÄSSELBY-VÄLLINGBY 2 92 0.4%

SPÅNGA-TENSTA 1 52 0.2%

FARSTA 1 42 0.2%

SKARPNÄCK - - -

TOTAL 177 23,668

T 2 . 2 : G E O G R A P H I C A L D I S T R I B U T I O N H O T E L S A N D R O O M S P E R C I T Y D I S T R I C T


G E O G R A P H I C D I S T R I B U T I O N O F H OT E L S

Geographic distributionAbout 60 percent of all hotel rooms in the county are located in the City of Stockholm. Sigtuna and Solna account for a significant part of the capacity in the county excluding the city. This is partly due to the fact that Stockholm Arlanda Airport is situated in Sigtuna municipality, while Solna is home to the new high-intensity business district of Arenastaden which also accommodates Friends Arena and West-field Mall of Scandinavia. For example, hotels in the Arlanda area account for about 15 percent of the to-tal room supply in the county excluding the city. The urban development projects in Solna, as well as im-proved communications to central Stockholm, have also been contributing factors to the municipality's increasing hotel supply in recent years. Within the City of Stockholm, the Norrmalm district accounts for about 47 percent of the total room supply, while Södermalm (including Gamla Stan) is in second place

and accounts for about 15 percent. Norrmalm inclu-des most of Stockholm's inner city, such as the fi-nancial district, several large shopping streets and the Central station with the hotel cluster on Vasagatan. It is therefore natural that the district has the largest concentration of hotels. Outside the city centre, hotel clusters have also been formed near Bromma Airport as well as major visitor drivers such as Stockholms-mässan and the IT-cluster in Kista.

In recent years, many hotels in the long-stay seg-ment have been established in Kista. Several of the international IT companies with headquarters in the area often have consultants on temporary assignme-nts who need housing for an extended period. The current housing shortage in the county makes it dif-ficult to find accommodation for employees, where-upon long-stay hotels have emerged as an alternative for businesses.

R I N K E BY-K I S TA

S PÅ N G A -T E N S TA

J Ä R FÄ L L A

Ö S T E R M A L M

VÄ L L I N G BY- H Ä S S E L BY

E N S K E D E -Å R S TA -

VA N TÖ R

N O R R M A L M

FA R S TA

S Ö D E R M A L M

Ä LV S J Ö

S K Ä R H O L M E N

H Ä G E R S T E N -L I L J E H O L M E N

B R O M M A K U N G S H O L M E N

S K A R P N Ä C K

S O L N AL I D I N G Ö

N A C K A

H U D D I N G E

B OT K Y R K A

47%O F T H E R O O M S U P P L Y I N T H E C I T Y

O F S T O C K H O L M I S L O C AT E D I N T H E

N O R R M A L M C I T Y D I S T R I C T.


CITY OF STOCKHOLM THE COUNTY EXCL. THE CITY

ADR, SEK HOTELS ROOMS % ROOMS HOTELS ROOMS % ROOMS

0 - 799 32 2,853 12.0% 38 3,418 22.6%

800 - 999 39 4,935 20.8% 47 4,286 28.3%

1,000 - 1,199 45 5,323 22.5% 45 4,083 27.0%

1,200 - 1,399 30 4,745 20.0% 19 1,775 11.7%

1,400 - 1,599 15 3,125 13.2% 14 1,274 8.4%

1,600 - 16 2,701 11.4% 7 314 2.1%

TOTALT 177 23,682 170 15,150

48%O F T H E H O T E L

R O O M S I N

S T O C K H O L M C O U N T Y

A R E I N F O U R S TA R

R AT E D H O T E L S .

Hotel classificationHotelstars Union is a European-wide organization that determines the classification standard for hotels in the member states. In Sweden, Visita, through its subsidiary Sveklass, is responsible for the hotel classifi-cation. However, the classification is voluntary, which is the reason why most of the hotels in Sweden are not included in this classification. For example, none of Scandic’s nor Nordic Choice Hotels are classified. To enable comparisons, Annordia has obtained ra-tings from online travel agencies such as Hotels.com, Booking.com and Tripadvisor, and has made its own assessment in cases where the hotel lacks an official ranking. Almost half of the room capacity in the coun-ty is found in four-star hotels, see Table T2.3. This is partly because four-star hotels have traditionally been standard for business travelers in Sweden. A relatively small portion of capacity is found in two-star hotels, which account for just below five percent of the total supply in the county. Noteworthy is that there are no hotels that have been classified as one star and that the-re is only one 5-star hotel in the county outside the city.

Breakdown by price rangeIn large hotel markets such as Stockholm County and the City of Stockholm, there are many different types of hotels that offer varying levels of guest service. This means that there is a large spread in the prices that the hotels can charge for their rooms.

In table T2.4, the number of hotels and hotel rooms in the City of Stockholm and the county ex-cluding the city have been divided into six different ranges of ADR. Within the city, almost two-thirds of the room capacity had an ADR between SEK 800 and SEK 1,399 in 2019. The proportion of rooms at hotels within that same price range is a few percenta-ge points higher in the county excluding the city. The proportion of rooms available at ”economy hotels” is also higher in the county excluding the city. Just below 23 percent of the market’s room capacity is in hotels that charged an ADR below SEK 800 last year. The corresponding proportion in the City of Stockholm was recorded at 12 percent.

For the City of Stockholm, the different price ranges have been combined with star ratings of the

Source: Hotelstars Union, Visita, Hotels.com, Booking.com, Annordia Research

CITY OF STOCKHOLM THE COUNTY EXCL. THE CITY STOCKHOLM COUNTY

STAR RATING HOTELS ROOMS % ROOMS HOTELS ROOMS % ROOMS HOTELS ROOMS % ROOMS

5 STARS 8 1,590 6.8% 1 26 0.2% 9 1,616 4.2%

4 STARS 67 12,435 52.6% 50 6,008 40.0% 117 18,443 47.6%

3 STARS 79 8,703 36.9% 95 8,242 54.9% 174 16,946 43.7%

2 STARS 23 939 3.7% 23 805 4.9% 46 1,744 4.5%

1 STAR - - - - - - - - -

TOTAL 177 23,668 169 15,081 346 38,749

T 2 . 3 : H OT E L S BY S TA R R AT I N G C I T Y O F S T O C K H O L M , T H E C O U N T Y E X C L U D I N G T H E C I T Y A N D S T O C K H O L M C O U N T Y

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research. 1The table also contains properties that have closed or changed business orientation during the year.

T 2 . 4 : H OT E L S BY AV E R A G E D A I LY R AT E D U R I N G 2 0 1 9 1

C I T Y O F S T O C K H O L M S A N D T H E C O U N T Y E X C L . T H E C I T Y

26.7% 21.6%13.3%

3.3%

73.3%

62.2%

53.3%

16.7%10.0%

16.2%

33.3%

80.0%

100.0%

83.3%

20.0%

16.7%

70.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 - 799 800 - 999 1,000 - 1,199 1,200 - 1,399 1,400 - 1,599 1,600 - 1,799 1,800 -

2 stars 3 stars 4 stars 5 stars

Photo: At Six, Andy Liffner

D 2 . 2 : H OT E L S BY S TA R R AT I N G A N D A D RS H A R E O F H O T E L S P E R P R I C E I N T E R VA L , C I T Y O F S T O C K H O L M


hotels. Diagram D2.2 shows a breakdown of hotels in terms of star rating and ADR. The diagram also includes an additional price range with hotels that charged an ADR above SEK 1,800. The ten hotels in the highest price range recorded an average ADR of as much as SEK 2,480 in 2019. As one would expect, there is a correlation between the price level and the number of stars. That is, the quality level correspon-ding to the star rating is reflected in the ADR. Gene-rally, hotels positioned in the lower price ranges are classified with two and three stars. Three-star hotels dominate all price ranges up to SEK 1,200, which is close to the overall ADR in the City of Stockholm. Four-star hotels are spread over all ranges except the lowest, with a vast majority in the price ranges excee-

ding SEK 1,200. All five-star hotels are placed in the two highest price ranges. In the highest range there is also, somewhat surprisingly, one three star-rated hotel. However, the star classification is not the sole factor explaining a hotel’s price level. For example, the rela-tively large differences in some of the star categories are explained by the hotel's location.

A T H R E E S TA R - R AT E D H O T E L WA S R E C O R D E D I N

T H E H I G H E S T I N T E R VA L O F AV E R A G E D A I L Y R AT E S ,

A B O V E 1 , 8 0 0 S E K , D U R I N G 2 0 1 9 .


Strong hotel market in StockholmThe hotel market in Stockholm County accounts for about 40 percent of the total room revenue in the Swedish hotel market. This means that the Stockholm hotel market is significant relative to both the coun-ty´s share of Sweden´s population and the Swedish economy, as the county accounts for only about 23 percent of the nation´s population and about one-third of the nation´s economy.

There are several important explanations to why the Stockholm hotel market is large in relation to its population. One explanation is that the Swedish government, the Swedish Parliament, the ministries and many large government agencies are located in Stockholm, which drives many visitors to the region. In addition, the county´s business structure is largely made up of sectors that normally have a high demand for hotel rooms, such as companies in Information

and Communication, Business services, Banking and Insurance. Many large international companies also have their headquarters in Stockholm. In addition to the business community´s direct contribution to ho-tel demand, Stockholmsmässan, the Nordic region´s largest exhibition centre, attracts guests every year through the many fairs and congresses it accommo-dates. Stockholm is a strong event region, with large arenas such as Friends Arena, Tele2 Arena and the Ericsson Globe. Stockholm is also an increasingly popular tourist destination. With its proximity to water and the Stockholm archipelago, the county attracts many domestic as well as foreign visitors. The hospi-tality industry also benefits from the fact that Stock-holm Arlanda Airport is located in the county and accounts for almost 70 percent of all international arrivals by air to Sweden.

Demand

T H E D E M A N D F O R H O T E L R O O M S I N S T O C K H O L M C O U N T Y H A S G R O W N

S T E A D I L Y D U R I N G 2 0 1 8 A N D 2 0 1 9 . T H E O C C U PA N C Y R AT E H A S

R E M A I N E D S TA B L E O V E R T H E L A S T F I V E Y E A R S A S S U P P L Y A N D D E M A N D

I N C R E A S E D AT T H E S A M E R AT E . H O W E V E R , A FA L L I N G AV E R A G E D A I L Y

R AT E ( A D R ) I N 2 0 1 9 L E D T O A M A R G I N A L D E C L I N E I N R E V PA R .

3.

D 3 . 1 : O C C U P I E D H OT E L R O O M S P E R Y E A R 2 0 1 0 - 2 0 1 9 C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y, M I L L I O N S


High growth in occupied rooms Growth in the hotel market in Stockholm County has been very strong over the last 10-year period, see dia-gram D3.1. Throughout the county, the number of oc-cupied hotel rooms has increased by over three million, which corresponds to an increase of almost 55 percent

between 2010 and 2019. Percentage increase has been stronger in the county excluding the city. However, in absolute terms, the City of Stockholm accounted for 65 percent of total growth in the county during the

observed period. From a historical perspective, the growth rate over the past decade has been exception-ally high, as it has been noted well above the historical growth trend. In addition, the percentage growth of occupied hotel rooms in Stockholm County was ap-proximately 60 percent higher than in the rest of Swe-den during the period. Solna and Sigtuna municipalities accounted for two-thirds of the growth in the county excluding the city. In Solna, for example, the new city district Arenastaden has taken shape during the past decade. In Sigtuna, a large part of the growth is ex-plained by the increased airline passenger traffic to and from Arlanda.

Leisure guests have accounted for a clear majority of the increase in occupied rooms in Stockholm County, as more than 70 percent of the growth can be attributed to the segment. However, the leisure seg-

Photo: Invest Stockholm, Tove Freij

5744 37 40

7

433

20

3751

3039

0

10

20

30

40

50

60

70

80

90

100

2010 2019 2010 2019

City of Stockholm County excl. CityPr

ocen

t

Business guests Conference guests Leisure guests

D 3 . 2 : S H A R E O F G U E S T S P E R G U E S T G R O U P, 2 0 1 0 A N D 2 0 1 9C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y, P E R C E N T


T H E G R A D U A L W E A K E N I N G O F T H E S W E D I S H

K R O N A D U R I N G T H E P E R I O D 2 0 1 3 A N D O N WA R D S

H A S B E N E F I T E D S T O C K H O L M ' S H O T E L M A R K E T.


40

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ent


ment´s share of growth was bigger in the city than in the county excluding the city. In the City of Stockholm, leisure guests accounted for just over 80 percent of the growth, while in the rest of the county, the segment accounted for about 55 percent. The effect of this de-velopment is that the guest structure of the hotels in Stockholm County has changed during the period. Di-agram D3.2 shows the distribution of occupied hotel rooms between business, conference and leisure guests at the hotels in the City of Stockholm and the rest of the county. In the City of Stockholm, the proportion of rooms occupied by leisure guests has increased from 37 percent in 2010 to 51 percent in 2019. In the county excluding the city, the proportion of rooms occupied by leisure guests has gone from 30 to 40 percent. Two consequences of this development are that the average number of guests per occupied hotel room has grad-ually increased, and that the share of rooms occupied on weekends has also increased. In the City of Stock-holm, where the leisure segment accounted for most of the growth in occupied rooms, the average number of guests per occupied room has increased from 1,45

to 1,55 over the past 10-year period, while the propor-tion of rooms occupied from Friday to Sunday has in-creased from 38 to 41 percent.

There are several different factors behind the strong growth in demand for hotel rooms from leisure guests. First, it is a general trend that leisure travel is increasing rapidly in both the rest of the country and internation-ally. Second, the gradual weakening of the Swedish cur-rency from 2013 and onwards has favoured this devel-opment. Until the turn of the year 2019, the Swedish krona has lost almost 20 percent in value relative to the Euro, almost 15 percent to the British Pound and just over 30 percent to the US dollar. The weakening of the Swedish krona has made it cheaper for both foreign and Swedish tourists to visit Stockholm. Third, the low Swedish interest rates from 2012 onwards may have had a positive effect. This has led Swedish households´ lending to continue to increase rapidly, at the same time as households´ interest rate expenditures in relation to household disposable income have fallen sharply. This means that the cost for households to increase their debt, in form of higher interest expenses, has not in-

D 3 . 3 : O C C U PA N C Y L E V E L 2 0 1 0 - 2 0 1 9 C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y


The tourism intensity, number of occupied rooms per capita, in

the City of Stockholm was 6.3 in 2019. This is high compared

to Oslo and Helsinki, which recorded 5.3 and 4.3 occupied

rooms per capita, respectively. Copenhagen had the highest

tourist intensity of the Nordic capitals with 8.2 occupied rooms

per capita.

51%O F A L L O C C U P I E D R O O M S I N T H E C I T Y

O F S T O C K H O L M D U R I N G 2 0 1 9 W E R E

S O L D T O L E I S U R E G U E S T S .


creased in the short-term perspective. The low inter-est rates have also contributed to the rapid increase in value of household assets, both housing and financial assets. This has substantially increased households´ wealth in relation to disposable income. All in all, this development has contributed to the strong growth in demand for hotel rooms from Swedish leisure guests.

Continuously high occupancy rates The strong growth in demand has driven up the occu-pancy rate in the county during the last 10-year period, despite the strong growth in supply of hotel rooms. The level of occupancy differs between the City of Stockholm and the rest of the county, see diagram D3.3. In 2019, the occupancy rate in the City of Stock-holm was almost 72 percent, while in the county ex-cluding the city it was recorded at 56 percent. However, the difference is also great between the municipalities

of Stockholm County excluding the city. One of the reasons for the lower occupancy rate is that a large share of the county´s conference centres are located outside of the city. It is a hotel type that generally has a lower occupancy rate than other types of hotels due to a strong seasonality and an uneven distribution of occupancy over the week.

During the last 10-year period, however, the occupan-cy rate has improved significantly for the hotel mar-ket in the county excluding the city, from 48 percent in 2010 to 56 percent in 2019. The occupancy rate also improved in the City of Stockholm during the period, albeit not as much. Between 1980 and 2014, the annual occupancy rate in the City of Stockholm had only exceeded 70 percent six times. Over the past five years, it has exceeded 70 percent every year. The improved occupancy rate in the county can be partly explained by the growth in demand from the leisure segment, which has resulted in a more evenly distribu-ted occupancy rate over the year as well as weekdays.

Varied growth in ADRThe ADR is significantly higher in the City of Stock-holm than in the rest of the county, see diagram D3.4. As the diagram shows, the difference has increased over the past 10-year period. In 2010, the difference was about SEK 100 and last year the difference had increased to almost SEK 250. The ADR in the City of Stockholm was among the highest of all municipal-ities in Sweden in 2019, while the ADR in the county excluding the city was below the national average. As can be seen in the diagram, the ADR in the county excluding the city was actually slightly lower in 2019 than in 2010. An important explanation for this is that the proportion of occupied rooms connected to con-ferences in the county excluding the city has decreased. The ADR in conjunction with conferences is normally at a relatively high level. When rooms are instead occu-pied by leisure guests, which are generally more price sensitive, ADR has declined.

Diagram D3.5 highlights the development of the ADR of hotel rooms in the City of Stockholm and

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D 3 . 4 : AV E R A G E D A I LY R AT E 2 0 1 0 - 2 0 1 9 C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y


88

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112

116

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Inde

x 10

0=20

10


D 3 . 5 : G R O W T H I N AV E R A G E D A I LY R AT E 2 0 1 0 - 2 0 1 9 C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y


1,237 SEKWA S T H E AV E R A G E D A I L Y R AT E I N T H E

C I T Y O F S T O C K H O L M D U R I N G 2 0 1 9


400

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1,000

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D 3 . 6 : R E V PA R 2 0 1 0 - 2 0 1 9 C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y


90

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x 10

0=20

10


D 3 . 7 : G R O W T H I N R E V PA R 2 0 1 0 - 2 0 1 9 C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L . T H E C I T Y

the county excluding the city by showing the percent-age change. The diagram shows that the ADR has increased over the entire period in the City of Stock-holm, albeit it has somewhat declined over the last two years. As noted above, the ADR in the county exclud-ing the city is actually lower in 2019 compared to 2010.

Compared to the rest of the country, ADR in Stockholm County has developed weaker over the past decade. The ADR in the country has increased by 14 percent during the period, which can be compared with about 11 percent in the City of Stockholm and less than 1 percent in the county excluding the city.

Weak growth in RevPARThere is a big difference in the level of RevPAR be-tween the hotel market in the City of Stockholm and in the county excluding the city, see diagram D3.6. In 2019, the RevPAR in Stockholm was recorded at SEK 890, while in the county excluding the city it was just over SEK 550. The level in the City of Stockholm was SEK 330 higher, corresponding to just over 60 per-cent. The higher RevPAR is attributed to the signifi-cantly higher occupancy rate and ADR. The difference in RevPAR can be explained to 54 percent by the fact that the city has a higher occupancy rate and 46 per-cent by the higher ADR. As previously mentioned, the level of RevPAR is significantly higher in the City of Stockholm than in the county excluding the city and the difference has also increased marginally during

the last 10-year period, see diagram D3.7. This can be explained by a slightly higher growth in ADR in the City of Stockholm than in the county excluding the city. In 2009, the RevPAR was recorded 59 percent higher in Stockholm city and by 2019 the difference had increased marginally to 60 percent. In 2009, 80 percent of the difference was explained by higher occupancy rates and 20 percent by higher ADR.

The growth in RevPAR has been weak in Stock-holm County compared to the rest of the country, where RevPAR increased by 33 percent between 2010 and 2019. The corresponding increase was about 15 percent in the City of Stockholm and 14 percent in the county excluding the city, respectively. Thus, the percentage increase was more than twice as high in the rest of Sweden compared to both the City of Stockholm and the county excluding the city.

The weak RevPAR development in Stockholm County is probably a consequence of the strong build- up in hotel room capacity. The increased capacity has enabled a strong development of occupied hotel rooms but also increased competition, which has led to a relatively weak development of both the ADR and RevPAR.

Unchanged seasonalityThe occupancy in Stockholm´s hotel market varies during the months of the year but is usually strong-est from May to November, see diagram D3.8. The


T H E W E A K G R O W T H I N R E V PA R D U R I N G T H E P E R I O D F R O M 2 0 1 0 T 0 2 0 1 9

I S M O S T L I K E L Y A C O N S E Q U E N C E O F A R A P I D I N C R E A S E I N T H E S U P P L Y O F

H O T E L R O O M S I N S T O C K H O L M C O U N T Y.


T 3 . 1 : O C C U PA N C Y, AV E R A G E D A I LY R AT E A N D R E V PA R 2 0 1 0 - 2 0 1 9C I T Y O F S T O C K H O L M , T H E C O U N T Y E X C L . T H E C I T Y A N D S T O C K H O L M C O U N T Y

CITY OF STOCKHOLM THE COUNTY EXCL. THE CITY STOCKHOLM COUNTY

YEAR OCC., % ADR, SEK REVPAR, SEK OCC., % ADR, SEK REVPAR, SEK OCC., % ADR, SEK REVPAR, SEK

2010 69.4 1,117 775 48.2 1,009 486 61.2 1,085 663

2011 68.3 1,144 782 49.1 1,029 505 61.1 1,110 678

2012 66.2 1,116 739 47.1 1,012 477 59.2 1,085 642

2013 67.4 1,125 757 46.4 990 460 59.3 1,084 643

2014 68.6 1,127 774 49.0 946 464 61.0 1,070 653

2015 72.0 1,153 831 54.4 958 521 65.2 1,091 712

2016 73.2 1,215 890 55.1 991 546 66.2 1,143 757

2017 71.3 1,233 879 55.3 986 545 65.3 1,154 753

2018 71.2 1,227 874 56.1 1,023 574 65.6 1,163 762

2019 71.8 1,237 888 55.7 995 554 65.7 1,159 762

distribution of occupied rooms between the months of the year has remained largely unchanged over the past 10 years, with only marginal levelling between the strongest and weakest months. As for variations in the occupancy rate over the days of the week it can be noted that Sundays are by far the weakest days for hotels, see diagram D3.9. Tuesdays and Wednes-days, which are normally strong days for the business segment, are the days of highest occupancy. During the strongest periods in 2019, week 19-24 and week 33-39, the occupancy rate on Tuesdays and Wednes-days reached above 90 percent on 21 days out of 26 possible. Consequently, there are limitations on the occupancy rate in the City of Stockholm to rise much higher than in 2019, as the hotels are not able to ac-

commodate many more guests during peak days. The potential for the hotel market in the City of Stock-holm, given its unchanged capacity, thus lies in at-tracting guests during the parts of the week and the year where demand is lower.

As the leisure segment gains a larger market share, variations begin to level off somewhat. However, the winter months are still relatively weak in the city. There are several explanations for this. For example, the ac-tivity in the business segment is low during Christmas and New Year´s holidays, which affect occupancy in December and January. Another explanation may be that it is not as attractive to travel during the autumn and winter months as it is during the summer. In January and December 2019, the number of foreign

D 3 . 8 : S H A R E O F O C C U P I E D R O O M S P E R M O N T H C I T Y O F S T O C K H O L M

71

8179

71 7275

48

40

50

60

70

80

90

Mon Tue Wed Thu Fri Sat Sun

Occ

upan

cy ra

te, %

D 3 . 9 : O C C U PA N C Y R AT E P E R W E E K D AY 2 0 1 9 AV E R A G E VA L U E I N P E R C E N T, C I T Y O F S T O C K H O L M

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden


arrivals to Arlanda was approximately 300,000 fewer per month than during the summer period.

The ADR during the year largely follows the cor-responding variations for occupied rooms. To offset the seasonal effect and to maximize revenue, the hotels apply flexible pricing, which means that prices are ad-justed continuously depending on demand and on the guest´s price sensitivity.

Stable share of foreign guestsThe proportion of foreign guest nights in the rapid-ly growing hotel market in the City of Stockholm has been relatively stable over time. Since 1980, the pro-portion has varied between about 40 and 45 percent. During the period, the absolute number of foreign guest nights at Stockholm´s hotels has increased from just under one million to around four million, which corresponds to an increase of just over 300 percent. It is also among the foreign guests that the great future growth potential exists. Although Stockholm is a large domestic hotel market on a per capita basis, it is rela-tively small in terms of international guest nights. For-eign guest nights have accounted for two-thirds of the growth in the European hotel market over the past 10 years and is expected to continue to account for most of the growth. In addition, with an increasing number

of visitors from countries outside Europe, there are good conditions for continued growth.

Statistics Sweden reports guests with ”nationality unknown” as if the guests came from outside Europe. Due to this, the segment has grown considerably ac-cording to the statistics, as the number of guests re-ported with unknown nationality has increased rapidly. In 2019, however, the number of guest nights where information is missing in the reporting of nationality has fallen sharply, which is positive. However, it was discovered that many of the guests previously repor-ted as foreign guest nights were in fact Swedish guests. This means that the reported proportion of foreign guest nights fell sharply in 2019, although it is largely because reporting is now more accurate than before. The number of foreign guest nights for 2019 and the coming years must, against this background, be inter-preted with great caution.

T 3 . 2 : G U E S T N I G H T S BY N AT I O N A L I T Y, A L L T Y P E S O F A C C O M M O D AT I O NS T O C K H O L M C O U N T Y


NATIONALITY 2010 2019 GROWTH, % CAGR, %

SWEDEN 6,685,526 9,930,645 49% 4.5%

OUTSIDE OF SWEDEN 3,362,596 5,293,916 57% 5.2%

TOTAL 10,048,122 15,224,561 52% 4.7%

10 LARGEST VISITOR COUNTRIES TO STOCKHOLM COUNTY (ALL TYPES OF ACCOMMODATION)

1 GERMANY 468,672 637,347 36% 3.5%

2 USA 248,691 577,063 132% 9.8%

3 UNITED KINGDOM 308,390 433,411 41% 3.9%

4 NORWAY 229,785 251,472 9% 1.0%

5 FINLAND 188,119 237,427 26% 2.6%

6 FRANCE 159,450 212,199 33% 3.2%

7 INDIA 28,257 169,440 500% 22.0%

8 DENMARK 164,442 167,458 2% 0.2%

9 CHINA 54,459 164,898 203% 13.1%

10 THE NETHERLANDS 119,112 163,038 37% 3.5%

Photo: Nobis Hotel Stockholm, Beatrice Graalheim

F O R E I G N G U E S T N I G H T S H AV E C O N S T I T U T E D

T H E M A J O R I T Y O F T H E G R O W T H I N T H E H O T E L

M A R K E T I N E U R O P E S I N C E 2 0 1 0 .

15,200,000T H E T O TA L N U M B E R O F G U E S T N I G H T S I N

S T O C K H O L M C O U N T Y D U R I N G 2 0 1 9 I N A L L T Y P E S

O F C O M M E R C I A L A C C O M M O D AT I O N , I N C L U D I N G

H O S T E L S , H O L I D AY H O M E S A N D C A M P S I T E S .

H O T E L S C O N S T I T U T E A P P R O X I M AT E L Y 1 3 . 7 M I L L I O N

O F T H E G U E S T N I G H T S .


Limited pipeline in central Stockholm The addition of hotel rooms is set to continue at a relatively high rate in Stockholm County. In the city, however, a relatively weak supply growth is expected between 2020 and 2024. Of the almost 4,300 rooms that are expected to be completed in the county, almost 1,200 are in Stockholm City, see diagram D4.1. Only half of these rooms are located in the inner city. The relatively weak growth is partly a consequence of high office rents in Stockholm's inner city, which has been highlighted earlier in the report.

The planned changes to the room supply outside the city center are mainly concentrated to the districts of Kista, Hässelby and Bromma. In addition to the confirmed openings, there is also the possibility that the county's hotel market will be added to up to 2,800 rooms through planned but currently unconfirmed projects, see diagram D4.2.

New actors in the county Among the upcoming hotel developments in Stockholm are a few operators who are set to open their first hotel in the region. For example, ESS Group which is behind the popular Steam Hotel in Västerås, will open Ellery

Beach House in Lidingö Municipality during the fall of 2020 in Blue Hotel's former premises. They already have nine hotels in the Nordic region, but this will be their first in the Stockholm area. An international brand that soon enters the Stockholm market is AC Hotels by Marriott. Two hotels with the brand are planned for the coming five-year period, one in Kista and one in Ulriksdal. Both hotels will be operated by Vi Invest. It is noteworthy that the region's largest operator, Scandic, is not included in the list of planned development projects in the coming years.

Although no new Scandic locations are set to open, the chain recently announced its new concept Scandic Go with intentions to rebrand two existing hotels in

Future supply

T H E F U T U R E S U P P L Y G R O W T H I N T H E C O U N T Y I S E X P E C T E D

T O C O N T I N U E AT A R E L AT I V E L Y H I G H R AT E . T H E R E A R E J U S T U N D E R

4 , 3 0 0 C O N F I R M E D H O T E L R O O M S I N T H E P I P E L I N E F O R T H E

C O M I N G F I V E -Y E A R P E R I O D , A S W E L L A S A N U M B E R O F U N C E R TA I N

P R O J E C T S T H AT C A N F U R T H E R I N C R E A S E T H E R O O M S U P P L Y.

4.

D 4 . 1 : C O N F I R M E D C H A N G E S TO S U P P LY 2 0 2 0 - 2 0 2 4N U M B E R O F R O O M S I N T H E C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L U D I N G T H E C I T Y

Source: Annordia Research

D 4 . 2 : U N C O N F I R M E D C H A N G E S TO S U P P LY 2 0 2 0 - 2 0 2 4N U M B E R O F R O O M S I N T H E C I T Y O F S T O C K H O L M A N D T H E C O U N T Y E X C L U D I N G T H E C I T Y


4,300C O N F I R M E D N E W R O O M S A R E

E X P E C T E D T O B E A D D E D T O T H E C O U N T Y ' S

H O T E L M A R K E T B Y 2 0 2 4 .

Illustration: Gasklocka 1, Sweco Architects.

central Stockholm during late 2020. The second largest operator in the county, Nordic Choice Hotels, plan for approximately 1,600 new rooms spread over its various brands. Thus, they account for about 40 percent of the county’s total capacity increase.

Continued growth in Solna and SigtunaThe majority of the supply growth in the coming years is expected to take place in Solna and Sigtuna. There are plans for approximately 1,080 and 1,060 new hotel rooms in the municipalities, respectively. Thus, these two municipalities together account for about 55 per-cent of the confirmed capacity increase in Stockholm County.

Both municipalities carry out large urban devel-opment projects that will contribute to the devel-opment of the hospitality industry in each area. For example, Quality Hotel Arlanda XPO, formerly Qu-ality Hotel Arlanda, is set to expand with 190 rooms

in Sigtuna Municipality. The expansion of the hotel and the new exhibition center significantly increase the supply of hotel rooms and conference capacity near Stockholm Arlanda Airport. In Arenastaden in Solna, no less than six new openings and a major extension of Quality Hotel Friends are in progress. Thus, Solna is increasing its capacity from today's app-roximately 2,100 rooms to 3,200 rooms by 2022.

Planned changes to supplyIn tables T4.1 and T4.2 on the next page, the con-firmed new hotel openings and expansions in the city and the county outside of the city are listed. See also diagram D4.1 and D4.2 below. A confirmed project means that there is a signed agreement between the property owner and a hotel operator, or that Annordia has gained information indicating that the project may be regarded as confirmed and that it can be carried out during the forecast period.


Source: Annordia Research*Stockholm's inner city is divided into the districts of Kungsholmen (K), Norrmalm (N), Östermalm (Ö) and Södermalm (S). In addition to the division of central Stockholm, two more hotel clusters have been defined: Central Business District (CBD) and Vasagatan (VG). CBD houses parts of Norrmalm and Östermalm through Olof Palmes gata and Birger Jarlsgatan, respectively. Vasagatan runs through CBD and mainly comprises a cluster of large business hotels. Supply changes are also planned for in the suburban districts Kista-Rinkeby (KR), Hässelby-Vällingby (HV), Bromma (B) and Skärholmen (SK).

OPENING HOTEL TYPE ROOMS MUNICIPALITY

2020 FORENOM APARTHOTEL ARLANDA NEW HOTEL 120 SIGTUNA

2020 COMFORT HOTEL ARLANDA NEW HOTEL 503 SIGTUNA

2020 AC HOTEL BY MARRIOTT STOCKHOLM ULRIKSDAL NEW HOTEL 223 SOLNA

2020 CLARION COLLECTION HOTEL TAPETFABRIKEN NEW HOTEL 236 NACKA

2020 WIK NEW HOTEL 150 UPPLANDS VÄSBY

2020 HOTEL GIÒ, BW SIGNATURE COLLECTION NEW HOTEL 180 SOLNA

2020 ELITE HOTEL SÖDERTÄLJE NEW HOTEL 160 SÖDERTÄLJE

2020 ELLERY BEACH HOUSE (EX. BLUE HOTEL) NEW HOTEL 120 LIDINGÖ

2021 QUALITY HOTEL FRIENDS EXPANSION 251 SOLNA

2021 QUALITY HOTEL ARLANDA XPO EXPANSION 190 SIGTUNA

2021 COMFORT HOTEL ARENASTADEN NEW HOTEL 336 SOLNA

2021 CHOICE LONG STAY NEW HOTEL 88 SOLNA

2021 LONGSTAY BY SCANDINAVIAN XPO NEW HOTEL 50 SIGTUNA

2022 AB PROPERTIES IN KUNGENS KURVA NEW HOTEL 93 HUDDINGE

2022 VI INVEST IN ROSERSBERG NEW HOTEL 200 SIGTUNA

2023 CLARION HOTEL VID MARENPLAN NEW HOTEL 187 SÖDERTÄLJE

TOTAL 3,087

T 4 . 2 : C O N F I R M E D C H A N G E S TO S U P P LY 2 0 2 0 - 2 0 2 4S T O C K H O L M C O U N T Y E X C L U D I N G T H E C I T Y

OPENING HOTEL TYPE ROOMS CITY DISTRICT

2020 OPTIMA APARTMENTS NEW HOTEL 18 SK

2020 HOTEL VILLA DAGMAR NEW HOTEL 70 Ö

2020 LIVINGTON HOTEL NEW HOTEL 98 HV

2020 BEST WESTERN AT 108 NEW HOTEL 95 N

2021 AC HOTEL BY MARRIOTT, KISTA NEW HOTEL 225 KR

2021 OSCAR DEN I:S MINNE, ”STIFTELSEN” NEW HOTEL 56 S

2022 BIZ APARTMENT BROMMA NEW HOTEL 175 B

2022 FIRST HOTEL NORRTULL EXPANSION 34 N

2022 CONFIDENTIAL EXPANSION 30 -



2023 STOCKHOLM CLASSIC HOTEL EXPANSION 20 S

2023 GASKLOCKA 1 NEW HOTEL 160 Ö

TOTAL 1,188

T 4 . 1 : C O N F I R M E D C H A N G E S TO S U P P LY 2 0 2 0 - 2 0 2 4T H E C I T Y O F S T O C K H O L M

C O N F I R M E D C H A N G E S I N H OT E L R O O M S U P P LY 2 0 2 0 - 2 0 2 4N U M B E R O F R O O M S P E R M U N I C I PA L I T Y I N S T O C K H O L M C O U N T Y


S I G T U N A1 , 0 6 3

R O O M S

S O L N A1 , 0 7 8

R O O M S

S Ö D E R TÄ L J E 3 4 7

R O O M S

N A C K A2 3 6

R O O M S

H U D D I N G E 9 3

R O O M S

STOCKHOLM 1 , 1 8 8R O O M S

U P P L A N D SVÄ S BY

1 5 0 R O O M S

L I D I N G Ö1 2 0

R O O M S


IntroductionAs a basis for the assessment of the forecasted growth in demand between 2020 and 2024, Annordia has taken into account the underlying growth trend in the city’s hotel market, the projected position in the economic cycle and the expected development of the exchange rate during the forecast period. Based on these components, a potential growth in demand has been estimated. The overall assessment also pays respect to the structural shift that has taken place in the hotel market in recent years, which is that leisure guests now account for the majority of the growth in occupied hotel rooms. However, in order to realize the potential growth in demand, the supply of hotel rooms has to be adapted to the increased demand. If the occupancy rate for 2019 is deemed to be in an approximate long-term balance, an increased demand must therefore be met by an increased supply at the corresponding rate.

The potential growth in demandAs a result of increased travel over the past 50 years, the need for new hotels in the City of Stockholm has increased continuously. The increased travel is due

to several different factors. Intensified trade, both nationally and internationally, has increased the need for business meetings and business trips. At the same time, increased wealth has given individuals a higher purchasing power, which has enabled increased travel in the leisure segment. The average annual growth in

occupied hotel rooms in the City of Stockholm was 3.7 percent during the period 1980 to 2019. In the past decade, however, the average annual growth rate in-creased to 4.8 percent. In absolute terms, the average increase was 117,000 occupied hotel rooms per year between 1980 and 2019. Over the past ten-year peri-od, average growth was 230,000 rooms per year, which is close to twice the average over the past 40 years. In recent years, demand growth has been exceptional-

Forecast 2020-2024

A C C O R D I N G T O A N N O R D I A’ S F O R E C A S T, T H E N U M B E R O F O C C U P I E D

H O T E L R O O M S I N T H E C I T Y O F S T O C K H O L M I S E X P E C T E D T O I N C R E A S E B Y

A N AV E R AG E O F 2 . 0 P E R C E N T P E R A N N U M OV E R T H E N E X T F I V E -Y E A R P E R I O D.

D U E T O A L I M I T E D E X P E C T E D G R O W T H I N S U P P LY, T H E C I T Y ’ S O C C U PA N C Y

R AT E I S F O R E C A S T E D T O R I S E T O A B O U T 7 3 P E R C E N T B Y 2 0 2 4 .

5.

3.7%T H E AV E R A G E A N N U A L G R O W T H I N

O C C U P I E D R O O M S 1 9 8 0 - 2 0 1 9 .

The forecast is made in order to assess the future need for new hotel capacity in the

City of Stockholm. In a first step, the potential growth in occupied hotel rooms during the

period is assessed. This assessment takes into account the underlying trend in demand in

the hotel market in Stockholm, the economic situation and the expected exchange rate

development during the forecast period. This is then compared to the investments in new

hotel rooms during the forecast period for which information is currently available. This,

in turn, provides a basis for an assessment of the effect on the occupancy rate, average

daily rate and RevPAR during the period. Finally, an assumption is made of level of

occupancy that is in long-term balance, which gives an indication of the scope for

possible further investments in new hotel rooms. Photo: Invest Stockholm, Henrik Trygg

ly strong. The strong growth can be partly attributed to the favourable conditions for increased travel in the leisure segment, such as a weak Swedish krona and extremely low interest rates. During the 2010s, leisure guests accounted for just over 80 percent of the total growth in occupied hotel rooms. As a re-sult, the leisure segment's share of occupied rooms increased from 37 percent to 51 percent over the past 10 years. Given that the Swedish krona is expected to strengthen compared to major currencies in the com-ing years, while interest rates are expected to rise, the underlying growth in demand is predicted to decline to around three percent per year. In absolute terms, an annual growth of three percent means an average of approximately 200,000 more occupied rooms per year during the forecast period. The growth potential in absolute terms is thus expected to remain at a his-torically high level.

Historically, the relationship between economic growth and demand for hotel rooms in Sweden has been significant. During years of high/low economic growth, high/low growth has been recorded in occu-pied hotel rooms. The relationship between econom-ic growth and the growth of occupied hotel rooms is

almost as strong in Stockholm as it is for the entire country. This is because the City of Stockholm repre-sents a large part of both the Swedish economy and the Swedish hotel market. An estimate of the long-term relationship between the economic growth in the country and the growth in occupied hotel rooms in the City of Stockholm indicates that an increase in GDP (volume) of one percent corresponds to an increase of occupied hotel rooms in the city of about two percent. The National Institute of Economic Research has forecasted an annual average GDP growth of 1.6 percent per year until 2024. Projected GDP growth thus indicates a growth in occupied hotel rooms averaging just over three percent per year from 2020 to 2024.

Stockholm is relatively cheap The general cost situation has an influence on how tourists choose travel destinations, which in turn af-fects the local demand for hotel rooms. However, it is of less importance to business travellers, who normally can choose neither destination nor time of travel. Major changes in the exchange rate have signif-icance for the relative cost situation and thus also for

D 5 . 1 : G R O W T H I N G D P A N D O C C U P I E D R O O M S 2 0 0 6 – 2 0 2 4P E R C E N TA G E C H A N G E P E R A N N U M


Photo: Invest Stockholm, Helén Pe


the leisure guests' choice of destination. The Swedish krona's relative value against major currencies from areas with many visitors to Sweden, such as the Euro-zone, the US and the UK, has weakened sharply since 2012. The krona's value in relation to the Euro has weakened by almost 20 percent, to the US dollar by about 30 percent and to the British pound by almost 15 percent. This has made it cheaper for tourists from these currency areas to visit Sweden and Stockholm. During the period 2012 to 2019, there is a clear cor-relation between changes in the exchange rate against the Swedish krona and the development of guest nights in Swedish hotels from the corresponding currency areas. The weakening of the Swedish krona has also favoured domestic tourism as it has become more expensive for Swedes to travel abroad. Accord-ing to the National Institute of Economic Research's forecast of the Swedish krona until 2024, the krona’s value is expected to gradually improve relative to the previously mentioned currencies during the period. A strengthening of five percent is forecasted relative to the British pound and about ten percent relative to the Euro and the US dollar. However, despite the strengthening of its value, the Swedish krona is ex-pected to remain relatively weak from a historical point of view. Therefore, it is assumed that the krona will not have a negative effect on hotel room demand during the period.

Given the estimated growth trend, the expected economic situation and the forecasted exchange rate development, the potential annual growth in demand is estimated to be around 200,000 occupied hotel rooms between 2020 and 2024. This corresponds to an average annual growth rate of about three percent during the forecast period.

Rising occupancy ratesThe occupancy rate on an annual basis in the City of Stockholm is currently at almost 72 percent, which is historically high. During the period 1980-2014, the annual occupancy rate was only recorded above 70 percent in Stockholm six of those years. Over the past five years, the occupancy rate has consistently been noted above 70 percent, which indicates that the level of occupancy has stabilized at a higher level. An occupancy rate of about 71 percent is deemed to be a level in long-term balance. One reason why the oc-cupancy rate has been established at a higher level is the increased demand from the leisure segment. This has, among other things, led to an increase in demand on weekends, which has driven up occupancy rates mainly on Saturday and Sunday, thus resulting in a higher average occupancy rate throughout the week.

Occupied hotel rooms in the City of Stockholm are estimated to potentially increase by 200,000 per year over the next five-year period, which would cor-respond to a total increase of approximately one mil-lion more occupied hotel rooms on an annual basis in 2024 compared to 2019. Maintaining an occupancy rate in the city close to 71 percent would then require an increase in supply of approximately 1.4 million availa-ble hotel rooms 2024 (on an annual basis). This cor-responds to a capacity increase in the City of Stock-

D 5 . 2 : C H A N G E I N G U E S T N I G H T S A N D E X C H A N G E R AT E S 2 0 1 2 - 2 0 1 9S W E D I S H K R O N A A N D C U R R E N C I E S F R O M Z O N E S W I T H M A N Y G U E S T N I G H T S I N S W E D E N


holm of about 4,000 hotel rooms. According to in-formation currently available, and reported in Chap-ter 4, the supply in the city is estimated to increase by approximately 2,000 new hotel rooms by 2024, of which approximately 1,200 rooms are confirmed sup-ply changes. Thus, the estimated increase in capacity is, at best, only half of the growth in supply required to meet the estimated potential increase in demand until 2024. Since supply is expected to increase at a lower rate than demand, the occupancy rate is fore-casted to rise to around 73 percent in the coming five-year period. Therefore, according to the forecast, occupied hotel rooms are only expected to be able to increase by 640,000 rooms by 2024, which means that just over 60 percent of the estimated potential de-mand growth will have been met. Parts of the poten-

tial demand that is not met in the City of Stockholm is instead likely to spill over to hotels in neighbouring municipalities within the county.

Strong growth in ADR and RevPARThe ADR in the City of Stockholm has increased by just under one percent between 2018 and 2019. This is due to a combination of a sharp increase in number of hotel rooms during 2017 and 2018 that increased competition for guests, and that the proportion of hotel rooms occupied by leisure guests has increased rapidly. The occupancy rate in the City of Stockholm is expected to remain high going forward. Against

this background, the ADR in the City of Stockholm is assumed to have a positive development during the forecast period. The average growth rate is estimated at three percent per year, which corresponds to an in-crease in ADR from SEK 1,237 in 2019 to SEK 1,443 in 2024. The higher occupancy rate and the rising ADR result in a forecasted RevPAR growth of, on av-erage, 3.3 percent per annum. According to this fore-cast, RevPAR in the City of Stockholm is expected to increase from SEK 888 in 2019 to SEK 1,047 in 2024.

Existing conditions for hotel investmentsIn conclusion, the potential growth in occupied hotel rooms will not be fully met in the City of Stockholm during the forecast period, given the known invest-ments in new hotel rooms. Assuming an occupancy rate in the long-term balance of 71 percent, approxi-mately 2,000 additional hotel rooms will be needed in the city by 2024 to maintain that level. However, that is a simple calculation based on a number of general assumptions. For further investments in hotel rooms to be realized, they must be attractive from a profit-ability perspective for potential investors. In addition to having access to properties that can be converted, or land to build on, investments in new hotels must, for example, be more profitable than alternative uses or offer other values for the investor.

At present, for example, office rents in central Stockholm are higher than a hotel generally can bear. One consequence of this is that hotel investments are, to a greater extent, taking place in other expan-sive municipalities in the county such as Solna and Sigtuna. However, the strong growth in RevPAR in the City of Stockholm until 2024 is expected to make investments in hotel rooms in the city more attractive towards the end of the forecast period than at pres-ent. In addition, the growth in visitors to Stockholm is expected to continue at a high rate even after the forecast period.


2019 2024 %-CHANGE CAGR (%)

AVAILABLE ROOMS, MILL IONS 8.5 9.2 8.6 1.7

OCCUPIED ROOMS, MILL IONS 6.1 6.7 10.5 2.0

OCCUPANCY RATE, % 71.8 73.0 1.7 0.3

ADR, SEK 1,237 1,434 15.9 3.0

REVPAR, SEK 888 1,047 17.9 3.3

T 5 . 1 : F O R E C A S T F O R T H E H OT E L M A R K E T I N T H E C I T Y O F S TO C K H O L M 2 0 1 9 - 2 0 2 4

A C C O R D I N G T O A N N O R D I A ' S F O R E C A S T, A N

A D D I T I O N A L 2 , 0 0 0 H O T E L R O O M S A R E N E E D E D I N

T H E C I T Y O F S T O C K H O L M , B E Y O N D T H E P L A N N E D

H O T E L O P E N I N G S , T O M A I N TA I N A N O C C U PA N C Y

L E V E L A R O U N D 7 1 P E R C E N T.

200,000T H E P O T E N T I A L G R O W T H I N O C C U P I E D R O O M S

P E R Y E A R B E T W E E N 2 0 2 0 A N D 2 0 2 4 .

S T O C K H O L M H O T E L R E P O R T 2020 S T O C K H O L M H O T E L R E P O R T 202036 37Photo: Blique by Nobis, Beatrice Graalheim


The SBA municipalities in a contextIn December 2019, the municipalities of Stockholm Business Alliance (SBA) had a total of about 600 hotels and almost 54,000 hotel rooms. The number of hotels and hotel rooms located in SBA member municipal-ities outside Stockholm County amounts to 253 and 14,917, respectively.

The entire SBA region accounts for approximately half of Sweden’s total room revenue, of which the City of Stockholm constitutes a large part. The mu-nicipalities in SBA outside Stockholm County make up about a tenth of the nation's room revenue. The proportion has increased somewhat over the past 10 years, as shown in diagram D6.1. There is, however, great variation between the hotel markets within SBA, due to differences in factors such as business struc-ture and size. In the markets studied, the average daily rates range from SEK 754 to SEK 1,386 and the oc-cupancy rate lies in the span between 25.6 and 71.8 percent, see tables T6.1 and T6.2.

Over the past 10 years, the number of occupied rooms in the SBA municipalities with more than five hotels, and thus have reported accommodation sta-tistics, has increased by an average of 3.7 percent per year. This was slightly lower than the national aver-

Stockholm Business Alliance

S T O C K H O L M B U S I N E S S A L L I A N C E ( S B A ) I S A PA R T N E R S H I P B E T W E E N

5 6 M U N I C I PA L I T I E S I N 8 C O U N T I E S W H O S E M I S S I O N I S T O AT T R A C T

F O R E I G N I N V E S T M E N T S T O T H E R E G I O N A N D M A R K E T I T U N D E R

T H E M E S S A G E S T O C K H O L M - T H E C A P I TA L O F S C A N D I N AV I A .

6.

age annual growth of 4.0 percent during the period. The growth in the City of Stockholm has been higher during the period, with an average of 4.8 percent per year, while growth in the county outside the city has been slightly weaker than the SBA municipalities with 3.5 percent per year. During the same period, however,

M U N I C I PA L I T I E S I N S TO C K H O L M B U S I N E S S A L L I A N C E

Stockholm County: Stockholm, Danderyd, Lidingö,

Sollentuna, Solna, Sundbyberg, Täby, Upplands-Bro,

Upplands Väsby, Sigtuna, Vallentuna, Ekerö, Nacka,

Värmdö, Haninge, Tyresö, Nynäshamn, Huddinge,

Botkyrka, Nykvarn, Södertälje, Norrtälje, Järfälla,

Österåker, Vaxholm och Salem.

Uppsala County: Uppsala, Knivsta, Heby, Håbo,

Enköping, Östhammar och Tierp.

Södermanland County: Eskilstuna, Nyköping, Oxelösund,

Gnesta, Trosa, Katrineholm, Flen och Strängnäs.

Västmanland County: Västerås, Hallstahammar, Arboga,

Kungsör, Sala och Köping.

Örebro County: Örebro och Karlskoga.

Gävleborg County: Gävle och Sandviken.

Dalarna County: Avesta, Ludvika och Smedjebacken.

Östergötland County: Norrköping och Linköping.

MUNICIPALITY HOTELS1 AVAIL. ROOMS2 OCC. ROOMS3 OCCUPANCY, %4 ADR, SEK5 REVPAR, SEK6

BOTKYRKA 3 - - - - -

DANDERYD 3 - - - - -

JÄRFÄLLA 3 - - - - -

NYKVARN 3 - - - - -

SALEM 1 - - - - -

SUNDBYBERG 3 - - - - -

TYRESÖ 0 - - - - -

TÄBY 3 - - - - -

UPPLANDS VÄSBY 3 - - - - -

VALLENTUNA 2 - - - - -

VAXHOLM 2 - - - - -

MUN. WITH LESS THAN FIVE HOTELS7 26 898,073 458,582 51.1 906 462

EKERÖ 5 78,205 20,024 25.6 1,156 296

HANINGE 8 139,907 59,855 41.0 1,105 453

HUDDINGE 6 267,871 152,702 57.0 754 430

L IDINGÖ 10 289,724 114,226 39.4 1,062 419

NACKA 10 403,554 235,971 58.5 1,252 732

NORRTÄLJE 15 207,936 88,442 42.5 975 415

NYNÄSHAMN 5 96,268 49,548 51.5 856 441

SIGTUNA 23 981,381 670,344 68.3 1,045 714

SOLLENTUNA 9 276,240 169,864 61.5 812 500

SOLNA 15 759,608 512,648 67.5 982 662

STOCKHOLM 177 8,466,487 6,077,856 71.8 1,237 888

SÖDERTÄLJE 11 298,827 173,357 58.0 929 539

UPPLANDS-BRO 8 158,107 44,856 28.4 1,210 343

VÄRMDÖ 13 244,962 94,462 38.6 1,159 447

ÖSTERÅKER 5 121,088 41,535 34.3 1,066 366

TOTAL 346 13,688,238 8,964,272 65.7 1,156 762

T 6 . 1 : H OT E L M A R K E T S TAT I S T I C S R E G A R D I N G S B A M U N I C I PA L I T I E S I N S TO C K H O L M C O U N T Y, 2 0 1 9

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research. 1) Number of hotels, 2Available rooms, 3Occupied rooms, 4Occupancy rate, 5Average daily rate, 6RevPAR, 7According to the Swedish Agency for Economic and Regional Growth/Statistics Sweden's rules on privacy, hotel market statistics can only be reported for markets containing at least five hotels. In order to obtain statistics for the municipalities that have fewer than five hotels, the municipalities have been merged into a common market.

27,5% 28,3% 28,9%

10,8% 11,2% 11,0%

10,0% 10,1% 10,5%

51,8% 50,4% 49,6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2015 2019

City of Stockhol m County excl. city SBA-municipalities Rest of Sweden

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden. 1) SBA municipalities outside of the county with more than five hotels.

D 6 . 1 : S H A R E O F S W E D I S H H OT E L R E V E N U E S B A M U N I C I PA L I T I E S A N D T H E R E S T O F S W E D E N

1)

the SBA municipalities outside Stockholm County have boasted a stronger growth in average daily rates than both the city and county as well as the rest of Sweden. All in all, the growth in RevPAR has been higher in the SBA municipalities outside of Stock-holm, both the city and the county, during the past decade. The growth has been about 3.8 percent on average per year, which is in line with the national average during the same period. Among the SBA municipalities that have noted the highest growth in

RevPAR is Västerås, where growth has been particu-larly strong since 2017. This coincides with the open-ing Comfort Hotel, as well as the popular destination hotel Steam Hotel.

Planned changes to supply In the coming five-year period, the SBA municipalities outside Stockholm County are expected to note a capacity increase of approximately 1,000 new hotel rooms from confirmed projects, see Table T6.3. In


Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research. 1) Number of hotels, 2Available rooms, 3Occupied rooms, 4Occupancy rate, 5Average daily rate, 6RevPAR, 7According to the Swedish Agency for Economic and Regional Growth/Statistics Sweden's rules on privacy, hotel market statistics can only be reported for markets containing at least five hotels. In order to obtain statistics for the municipalities that havefewer than five hotels, the municipalities have been merged into a common market.

T 6 . 3 : C O N F I R M E D C H A N G E S TO T H E H OT E L R O O M S U P P LY 2 0 2 0 - 2 0 2 4 M U N I C I PA L I T I E S I N S B A O U T S I D E O F S T O C K H O L M C O U N T Y


1,000H O T E L R O O M S

A R E P L A N N E D I N

T H E S B A M E M B E R

M U N I C I PA L I T I E S

O U T S I D E O F T H E

C O U N T Y.

OPENING HOTEL TYPE ROOMS MUNICIPALITY

2020 SKY HOTEL APARTMENTS CITY EXPANSION 54 LINKÖPING

2020 BEST WESTERN AND HOTEL NEW HOTEL 150 LINKÖPING

2020 BOTANIKA (F.D. F IRST HOTEL L INNÉ) NEW HOTEL 116 UPPSALA

2021 SCANDIC ÖREBRO CENTRAL NEW HOTEL 160 ÖREBRO

2022 KVARTERET RODGA (WINN) NEW HOTEL 210 NORRKÖPING

2023 SCANDIC NORRKÖPING NORD EXPANSION 116 NORRKÖPING

2023 HOTELL VID ROSVALLA ARENOR NEW HOTEL 100 NYKÖPING

N.A. HOOM HOME HOTEL UPPSALA NEW HOTEL 97 UPPSALA

TOTAL 1,003

MUNICIPALITY HOTELS1 AVAIL. ROOMS2 OCC. ROOMS3 OCCUPANCY, %4 ADR, SEK5 REVPAR, SEK6

ARBOGA 4 - - - - -

GNESTA 1 - - - - -

HALLSTAHAMMAR 3 - - - - -

HEBY 0 - - - - -

HÅBO 4 - - - - -

KNIVSTA 4 - - - - -

KUNGSÖR 1 - - - - -

OXELÖSUND 2 - - - - -

SALA 3 - - - - -

SMEDJEBACKEN 4 - - - - -

T IERP 3 - - - - -

MUN. WITH LESS THAN FIVE HOTELS7 29 392,369 136,907 34.9 1,099 384

AVESTA 5 56,395 23,330 41.4 886 366

ENKÖPING 7 126,097 47,524 37.7 993 374

ESKILSTUNA 13 276,934 144,050 52.0 817 425

FLEN 10 94,165 25,407 27.0 789 213

GÄVLE 16 373,773 234,875 62.8 918 577

KARLSKOGA 7 82,571 31,522 38.2 978 373

KATRINEHOLM 11 93,859 34,022 36.2 849 308

KÖPING 5 80,522 29,573 36.7 868 319

L INKÖPING 23 663,526 389,353 58.7 874 513

LUDVIKA 5 68,881 34,686 50.4 964 485

NORRKÖPING 23 545,054 306,353 56.2 1,016 571

NYKÖPING 10 293,303 154,154 52.6 760 399

SANDVIKEN 6 122,804 55,823 45.5 981 446

STRÄNGNÄS 7 62,091 28,991 46.7 948 442

TROSA 7 47,504 23,255 49.0 1,386 678

UPPSALA 21 612,823 368,547 60.1 951 572

VÄSTERÅS 19 521,284 342,356 65.7 976 641

ÖREBRO 22 547,775 359,804 65.7 912 599

ÖSTHAMMAR 7 62,279 23,186 37.2 1,025 381

TOTAL 253 5,124,009 2,793,718 54.5 934 510

T 6 . 2 : H OT E L M A R K E T S TAT I S T I C S R E G A R D I N G S B A M U N I C I PA L I T I E S O U T S I D E S TO C K H O L M C O U N T Y, 2 0 1 9

Photo: Steam Hotel, ESS Group

I N 2 0 1 9 , A N N O R D I A E X A M I N E D T H E C O N D I T I O N S F O R A D D I T I O N A L H OT E L R O O M S I N 1 3 O F S B A ' S M E M B E R

M U N I C I PA L I T I E S . T H E A N A LY S E S S H O W E D T H AT C O N D I T I O N S F O R I N C R E A S E D R O O M C A PA C I T Y E X I S T I N

E N K Ö P I N G , G ÄV L E , N Y K Ö P I N G , N Y N Ä S H A M N , S A N D V I K E N , TÄ BY, U P P S A L A A N D VÄ S T E R Å S .

addition to the confirmed new hotel rooms in the region, about 1,000 rooms are also in early planning stages. The majority of confirmed supply increases are located in Norrköping and Linköping, see table T6.3. For example, two large increases in capacity are expected to take place in Norrköping during the years 2022 to 2023. On the one hand, a new hotel will open in the Rodga block near the central station, and on the other, Scandic Norrköping Nord plans for

an expansion of 116 rooms. In Uppsala, the new ho-tel Botanika is set to open in spring 2020. The hotel is expected to launch with a concept that caters to millennials, offering large social spaces and tradition-al hotel rooms mixed with a hostel section and long stay units. The hotel, along with Hoom Home Hotel will be welcomed additions to the municipality’s hotel market, which has the lowest number of hotel rooms per capita in the entire SBA.


SupplyBy the end of 2019, Stockholm County had a total of 459 commercial accommodation facilities, i.e. ho-tels, hostels, holiday villages and campsites. The total capacity of commercial accommodation, excluding campsites, in the county comprises approximately 80,300 beds. For campsites, the capacity is based on camping pitches and cottages. The hotels, with a total of almost 73,500 beds, accounted for over 91 percent of all beds in commercial accommodation. Hostels accounted for 8 percent of the beds, while the holiday villages accounted for about 1 percent.

Guest nights and room revenueThe total market for commercial guest nights amount-ed to approximately 15.2 million in Stockholm Coun-ty during 2019, including accommodation at camp-sites. In total, the room revenue associated with these guest nights totalled SEK 11.7 billion (excluding

VAT). Of the total number of guest nights in 2019, hotels accounted for 13.7 million, equivalent to 90 percent of all guest nights in the county. At the same time, the hotels accounted for as much as 97 percent of the total room revenue.

The number of guest nights at hostels and camp-sites was approximately the same in 2019 - 732,000 and 729,000, respectively. The hostels’ room reve-nue amounted to 228 million, while the campsites’ amounted to 77 million. However, the comparison should be interpreted with some caution as guest nights and room revenue are not fully comparable be-tween hostels and campsites. Holiday villages account for a marginal share of the commercial guest nights in Stockholm County. In 2019, they accounted for just over 50,000 guest nights, corresponding to about 0.3 percent of the total guest nights. As a result, the room revenue of approximately SEK 17 million was also

Hostels, holiday villages and campsites

H O S T E L S , H O L I D AY V I L L A G E S A N D C A M P S I T E S A R E PA R T O F T H E

C O M M E R C I A L A C C O M M O D AT I O N M A R K E T I N S T O C K H O L M C O U N T Y.

T H E S E FA C I L I T I E S A C C O M M O D AT E J U S T O V E R 1 . 5 M I L L I O N O V E R N I G H T

S TAY S A N N U A L L Y, W H I C H C O R R E S P O N D S T O J U S T U N D E R 1 0 P E R C E N T

O F A L L G U E S T N I G H T S I N T H E C O U N T Y.

7.

marginal in the context. The growth in guest nights for the different types of accommodation shows var-ying trends. Guest nights in hotels have increased by 60 percent in the last 10 years, which corresponds to just over five million more guest nights in 2019 compared to 2010, see diagram D7.1. The number of guest nights at hostels and campsites has been rela-tively stable over the entire period. For hostels, guest nights rose by a total of 20 percent between 2010 and 2017, and then fell sharply the following two years. The guest nights at hostels in 2019 was thus back at the same level as in 2010. The guest nights at the campsites have also had years of both positive and negative development during the period. In 2019, the number of guest nights at campsites increased by al-most nine percent compared to 2018, corresponding to about 60,000 more guest nights. Seen over the en-

tire period, the number of guest nights at campsites is seven percent higher in 2019 compared to 2010. The number of guest nights in the county's holiday vil-lages has decreased by 40 percent, corresponding to 35,000 guest nights over the past 10 years. The num-ber of holiday villages has also decreased from seven to five during the period.

D 7 . 2 : S H A R E O F G U E S T N I G H T S P E R T Y P E O F A C C O M M O D AT I O NS T O C K H O L M C O U N T Y, 2 0 1 0 - 2 0 1 9


The hybrid hotel Generator, which has both

private rooms and dormitories for between

four and six people, hovers in the borderland

between hotels and hostels. Hybrid hotels

have become increasingly common in recent

years with the emergence of the leisure

segment. Generator Stockholm is classified

as a hostel by Statistics Sweden and is thus

excluded from the accommodation statistics

for hotels in the City of Stockholm.

Photo: Tengbom, Morgan Norman

D 7 . 1 : G R O W T H I N C O M M E R C I A L G U E S T N I G H T S P E R A C C O M M O D AT I O N T Y P ES T O C K H O L M C O U N T Y, 2 0 1 0 - 2 0 1 9

40

60

80

100

120

140

160

180

2010 2011 2012 2013 2014 2015 2016 20172 018 2019

Inde

x 10

0=20

10

Hotels Holiday villages Hostels Campsites


97%T H E H O T E L ' S S H A R E O F T H E T O TA L

R O O M R E V E N U E I N S T O C K H O L M

C O U N T Y 2 0 1 9 .


The strong growth in guest nights at hotels has result-ed in a significant increase of the hotels’ share of total guest nights in the county over the past 10 years, see D7.2. In 2010, the proportion was 85 percent and by 2019 it had increased to 90 percent. In the same pe-riod, the hostels’ share of guest nights has decreased from over seven percent to just below five percent. The campsites have had a similar development as the hostels, and also reduced their share of guest nights in the county from under seven percent to nearly five percent. In 2010, the holiday villages' share of guest nights accounted for about one percent, but in 2019 the proportion had dropped to 0.3 percent.

Foreign guestsThe proportion of Swedish and foreign guests differs noticeably between the different types of accommo-dation, see D7.3. In 2019, hostels had the highest pro-portion of foreign guest nights constituting 53 per-cent of the total volume. As guest nights at hostels have decreased while peer-to-peer services like Airbnb

have been established in Stockholm, combined with the fact that primarily foreign guests book accommo-dation via Airbnb, the P2P rentals can be assumed to be a stronger competitor for hostels than for ho-tels. The hotels had the second highest proportion of foreign guest nights, which constituted 34 percent of the total volume. Almost 30 percent of the camping guest nights are attributed to foreign guests. Staying in a holiday village in Stockholm County, however, appears to be an almost entirely Swedish phenomena, as only three percent of guest nights reportedly were from international guests in 2019.

D 7 . 3 : S H A R E O F S W E D I S H A N D I N T E R N AT I O N A L G U E S T N I G H T S P E R T Y P E O F A C C O M M O D AT I O N I N S T O C K H O L M C O U N T Y, 2 0 1 9


The ship Af Chapman, originally built in Whitehaven in

England in 1888, has been used as a hostel since 1949 and

has long been a well-known landmark at Skeppsholmen. The

City of Stockholm has been the owner of the 75 meter full rig

since 1947.

Photo: Invest Stockholm, Henrik Trygg


Average rateThe price that guests pay per guest night differs sig-nificantly between the different types of accommo-dation, see D7.4. In 2019, the average rate per guest night (not to be confused with ADR, which is the average daily rate per occupied room) was just over SEK 750 for the hotels in Stockholm County. It was just over 130 percent higher than the average rate per guest night at the holiday villages in Stockholm County and 140 percent higher than at the hostels. Camping sites had by far the lowest average rate per guest night. It was recorded just over SEK 100 in 2019. However, as previously mentioned, guest nights

and room revenue are not fully comparable between campsites and other types of accommodation.

Closing commentIn summary, the market for commercial accommo-dation in Stockholm County is dominated by hotels, both in terms of the number of guest nights and to-tal revenue. In addition, the dominance has increased over the past 10 years as the growth in guest nights and revenue in the hotel market has been strong while corresponding growth for the other types of accom-modation has been weak or even negative.

D 7 . 4 : AV E R A G E D A I LY R AT E P E R G U E S T N I G H TP E R T Y P E O F A C C O M M O D AT I O N I N S T O C K H O L M C O U N T Y, 2 0 1 9

759

325 311

106

0

100

200

300

400

500

600

700

800

Hotels Holiday villages Hostels Campsites

Hotels Holiday village s Hostels Campsites


53%WA S T H E S H A R E O F F O R E I G N G U E S T

N I G H T S I N T H E C O U N T Y ' S

H O S T E L S D U R I N G 2 0 1 9 .


Professionalisation of the services P2P rentals (peer-to-peer) of housing grew rapidly during the 2010s with services such as Airbnb. The company was founded in 2008 and is today the world's largest P2P broker for private rental of accommoda-tion. Airbnb offers over 7 million rental units in more than 100,000 cities (as of 2020), which means that the offered room supply is nearly four times greater than that of the world's largest hotel chain, Marriott International.

Initially, the P2P services started as a way for indi-viduals to rent out their apartments while on vacation, for example. In Sweden, P2P brokerage falls within the scope of normal second-hand rental. During the period December 2016 to November 2019, the P2P units in Stockholm's inner city was booked about 15.5 times on average per month. This is an indication that

the market is largely made up of professional actors who acquire apartments and rent them out in a hotel-like manner.

The number of bookings per object increased during the period and amounted to 16.5 bookings per object and month in 2019, which further emphasises this. Several companies that conduct traditional hotel operations also list their rooms on P2P services and

H O S T E L S , H O L I D AY V I L L A G E S A N D C A M P S I T E S A R E PA R T O F T H E

C O M M E R C I A L A C C O M M O D AT I O N M A R K E T I N S T O C K H O L M C O U N T Y.

T H E S E FA C I L I T I E S H A D J U S T O V E R 1 . 5 M I L L I O N O V E R N I G H T

S TAY S I N 2 0 1 9 , W H I C H C O R R E S P O N D S T O J U S T B E L O W 1 0 P E R C E N T

O F A L L G U E S T N I G H T S I N T H E C O U N T Y.

P2P rentals

8.

D 8 . 1 : B O O K E D N I G H T S A N D U N I Q U E O B J E C T SC E N T R A L S T O C K H O L M D U R I N G J A N 2 0 1 9 - N O V 2 0 1 9

Source: AirDNA

use them as marketing platforms. A prominent ex-ample is Forenom, one of the Nordic region's largest companies in the long-stay segment, which in 2017 partnered with Airbnb and advertises the majority of its rooms and apartments through the platform. Thus, Airbnb has scaled up quickly by also acting as an agent between companies and private individuals, so-called business-to-consumer (B2C). This means that there is a small overlap between the hotel statis-tics of Statistics Sweden and statistics of P2P servic-es. Thus, a direct comparison of data from the two sources will not be accurate. Supply and demand in central StockholmThe first P2P-listed object in Stockholm is located in Vasastan and was booked in the summer of 2010. During the past decade, P2P rental has grown steadily in Stockholm and is an established alternative to ho-tels, hostels and other accommodation services today. However, according to data from AirDNA, the num-ber of possible bookings, i.e. the number of availa-

ble items and days, via P2P services in Stockholm's inner city have declined in recent years. In 2018 they amounted to approximately 538,000, which is a de-crease of about four percent compared to 2016, see diagram D8.3. Between November 2017 and Novem-ber 2019, the number of possible bookings decreased by close to five percent, while the number of rooms booked through P2P services increased by five per-cent during the same period. During January- No-vember 2019, about 390,000 rooms were booked in Stockholm's inner city, which represents an increase of about five percent compared to the corresponding period in 2018. The decline in supply combined with an increased number of bookings has led the occu-pancy rate to increase from about 72 percent in 2017 to 79 percent in 2019.

Properties that are mediated through Airbnb are relatively few in comparison to hotels. Of all occupied hotel rooms and properties booked through Airbnb during January to November 2019, P2P-mediated properties accounted for approximately 6.5 percent.

D 8 . 3 : AVA I L A B L E B O O K I N G S F O R P 2 P P R O P E R T I E S A N D AVA I L A B L E R O O M S I N H OT E L S 1 I N D E X E D R O L L I N G 1 2 M O N T H AV E R A G E ( I N D E X 1 0 0 = D E C 2 0 1 7 )

1P2P-bookings only in Kungsholmen, Södermalm, Norrmalm and Östermalm districts while hotels are calculated for the entire city. Source: AirDNA, Swedish Agency for Economic and Regional Growth/Statistics Sweden

More and more hotels, hostels and professional hosts such as

Forenom mediate apartments and rooms through Airbnb. It rai-

ses the question whether the service should in some respects be

classified as a P2P broker or an OTA like for example Hotels.

com and Booking.

Photo: Forenom

7,000,000T H E A P P R O X I M AT E N U M B E R O F L I S T I N G S

O N T H E A I R B N B W E B S I T E .


The supply of P2P housing is primarily concen-trated to the Södermalm and Kungsholmen districts with about 44 and 21 percent of the total bookings during the last three years. Compared to the total housing stock, the proportion of units available for rent is very limited. In 2018, the average number of available units per day was approximately 0.7 percent of the total number of apartments in Stockholm's inner city. Since other forms of accommodation are also provided in addition to private homes, the actual proportion is estimated to be somewhat lower.

Rates and revenueThe ADR, according to AirDNA, refers to the aver-

age rate paid by consumers of P2P services, including cleaning fees. The rates include VAT paid by both the lessee and the lessor on the part of the price relating to the P2P company's service charge, that is, the agent fee linked to the service.

Between 2017 and 2019 (January to November) the ADR increased by an average of 2.8 percent per year to just over SEK 1,040 in 2019, see diagram D8.2. The price of P2P accommodation in Stock-holm's inner city has been recorded at an average of 27 percent below the hotel ADR in the City of Stock-holm (including VAT), during the three-year period. Since 2017, the difference in ADR of P2P housing has increased slightly faster than the hotel ADR and was recorded 25 percent below the hotel market in 2019 (January to November). The growth in the ADR can be partly explained by the fact that the supply has been consolidated to the most sought-after objects, where rates are generally higher.

P2P rental and the hotel marketDespite the strong growth of the P2P services during the past decade, the segment is not considered to pose a real threat to the hotel market in Stockholm. This is mainly motivated by the fact that the number of P2P objects is very small in relation to the Stockholm hotel market's total room supply. Also, the supply is stead-ily decreasing, at least in Stockholm’s inner city. The Rent Act and current rules on second-hand letting also oblige the lessor to have an approval from a third par-ty, which is a natural obstacle to the segment's growth. Voices have also been raised for tougher Airbnb reg-

Photo: Airbnb

Source: Airdna, Swedish Agency for Economic and Regional Growth/Statistics Sweden

YTD 2017 %-CHANGE YTD 2018 %-CHANGE YTD 2019

AVAILABLE BOOKINGS 519,990 -3.9% 499,601 -0.7% 495,999

BOOKED PROPERTIES 373,360 -0.1% 372,939 4.9% 391,063

OCCUPANCY RATE, % 71.8 4.0% 74.6 5.6% 78.8

AVERAGE DAILY RATE, SEK 987 0.1% 988 5.7% 1,044

T 8 . 1 : K E Y F I G U R E S F O R P 2 P - M E D I AT E D P R O P E R T I E S I N C E N T R A L S TO C K H O L M J A N U A R Y - N O V E M B E R 2 0 1 7 , 2 0 1 8 O C H 2 0 1 9

ulations. HSB, the country's largest housing coopera-tive, recently demanded a rewrite of The Rent Act to limit the valid reasons for subletting a condominium apartment. They point out, for example, that repeated subletting needs to be restricted to safeguard the idea of cooperative housing which is the common practice on the Swedish housing market.

In 2019, ten major European tourist cities, includ-ing Barcelona and Amsterdam, together requested as-sistance from the EU to regulate rental services such as Airbnb. The request highlighted that parts of the housing stock intended for permanent housing has become purely short-term rentals for tourists, which means that homes disappear from the traditional housing market. This leads to a mismatch between supply and demand which in turn leads to increased

housing costs. If services such as Airbnb and Homea-way were to be regulated in Europe, they are likely to lose market shares, even though they only make up a fairly small part of the market today.

However, P2P services can to some extent be seen as a complement to the hotel market in the leisure segment for limited periods of the year. For example, when the occupancy rates are unusually high and the traditional supply is not sufficient and for group book-ings where hotel rooms are not enough. For the corpo-rate market, there are certain factors that prevent P2P apartments from competing with the hotel market on similar terms, partly due to the lack of a basic service offering. If P2P services are increasingly used to me-diate professional operators' objects, they can also be seen as competitors to the hotel's OTA channels.

1,044 SEKWA S T H E A D R F O R

P R O P E R T I E S B O O K E D

T H R O U G H A I R B N B I N

C E N T R A L S T O C K H O M

D U R I N G 2 0 1 9 .

D 8 . 3 : K E Y F I G U R E S F O R P 2 P - M E D I AT E D P R O P E R T I E S C O M PA R E D TO H OT E L S1 2 M O N T H R O L L I N G AV E R A G E , D E C 2 0 1 7 - N O V 2 0 1 9

Source: AirDNA, Swedish Agency for Economic and Regional Growth/Statistics Sweden



Nordic operators dominateThe ten largest operators run about a quarter of all hotels in the county, and more than half of all hotel rooms, see Table T9.2. The majority of the largest op-erators' hotels are in the three- and four-star segments. Scandic Hotels alone holds just under a fifth of the county's room supply and about a quarter of all rooms in the City of Stockholm, although the chain's supply decreased in 2019 when Hotel Hasselbacken was ac-quired by Pop House Sweden. At present, only one of the largest operators in the county is non-Nordic, al-though it can be argued that Radisson, with roots in the SAS group, has a clear connection to Sweden.

The largest operators have been quite restrained in terms of capacity expansion in Stockholm County during the past two years. In 2018, a Comfort Hotel

(Nordic Choice Hotels) was opened in Kista, last year Blique by Nobis (Nobis Hospitality Group) opened in Vasastaden and in early 2020 both a Comfort and a Forenom hotel opened near Arlanda. They were the only openings of the county's ten largest operators during 2018-2020 and thus the ranking of largest op-erators is relatively unchanged since the Hotel Report 2018.

As previously mentioned in Chapter 3, Scandic Ho-tels' room capacity in Stockholm County is expected to remain relatively unchanged in the next few years, while Nordic Choice Hotels is planning a strong expansion

in Solna and Sigtuna. As Vi Invest will open three new hotels in the county, the group is expected to enter the list of the county's largest operators. Since Vi Invest will open hotels as franchises under the AC Hotels by Marriott brand, Marriott will increase its presence in the county during the coming years.

Biggest brandsThe two largest brands in Stockholm County, in terms of number of rooms, belong to Scandic Hotels and Nordic Choice Hotels, who also dominate the coun-ty´s room supply, see tables T9.1 and T9.2. Under the Scandic brand, however, there is a great variation in terms of location, quality level and service offering. It can therefore be argued that the comparison is unfair

Largest operators in the county

T H E H O T E L M A R K E T I N S T O C K H O L M C O U N T Y I S D O M I N AT E D

B Y S W E D I S H A N D N O R D I C O P E R AT O R S . S C A N D I C A N D

N O R D I C C H O I C E A L O N E A C C O U N T F O R A B O U T 3 0 P E R C E N T

O F A L L H O T E L R O O M S I N T H E C O U N T Y.

9.

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research1Downtown Camper by Scandic and Haymarket by Scandic are regarded as part of the Scandic brand in the summary above. 2Excluding Clarion Collection branded hotels.

T 9 . 1 : 1 0 L A R G E S T B R A N D S B Y M O S T R O O M S I N S T O C K H O L M C O U N T Y

NO. BRAND HOTELS ROOMS

1 SCANDIC1 28 6,945

2 CLARION HOTEL2 4 1,981

3 RADISSON BLU 5 1,668

4 QUALITY HOTEL 6 1,602

5 ELITE HOTELS 7 1,251

6 BEST WESTERN 10 1,195

7 FIRST HOTELS 8 1,007

8 BEST WESTERN PLUS 4 646

9 FORENOM 4 637

10 BW PREMIER COLLECTION 4 484

with, for example, Nordic Choice Hotels, which op-erates most of its hotels under three separate brands. Clarion Hotel is the largest brand within the group with some 80 hotels in the Nordic and Baltic coun-tries (including the Clarion Collection), followed by approximately 60 Quality Hotels and 40 with the Comfort Hotel brand.

Third on the list is Radisson Blu, which is part of the now Belgium-based Radisson Hospitality. Best Western, which is a collection of several pri-vately owned hotels run by individual franchisees, is

found a bit further down the list. The Best Western portfolio includes several brands, such as Best Wes-tern, Best Western Plus and BW Premier Collection. The Best Western hotels in the county are run by almost 20 different operators. Best Western is the largest non-Nordic brand in the county. Other non-Nordic brands represented in the county are, for ex-ample, Courtyard by Marriott, Hilton and Sheraton. Although the presence of international brands in the county is limited, interest to enter the Stockholm market is increasing.

T 9 . 2 : 1 0 L A R G E S T O P E R ATO R S B A S E D O N T H E N U M B E R O F R O O M S T H E TA B L E I S B A S E D O N H O T E L S R U N B Y T H E R E S P E C T I V E O P E R AT O R . H O T E L S U N D E R L I C E N S E D N A M E S

O R F R A N C H I S E A G R E E M E N T S A R E E X C L U D E D F R O M T H E L I S T O F T H E N U M B E R O F H O T E L S I N S T O C K H O L M C O U N T Y.

Source: Annordia Research 1The portfolio contains hotel rooms and apartments mediated through services such as Airbnb.

THE CITY COUNTY EXCL. THE COUNTY

NO. OPERATOR HOTELS ROOMS HOTELS ROOMS HOTELS ROOMS

1 SCANDIC HOTELS 19 5,140 9 1,857 28 6,997

2 NORDIC CHOICE HOTELS 11 3,749 6 1,570 17 5,319

3 RADISSON HOSPITALITY 3 1,043 2 602 5 1,645

4 LIGULA HOSPITALITY GROUP 8 1,088 1 178 9 1,266

5 ELITE HOTELS 6 1,065 1 186 7 1,251

6 NOBIS HOSPITALITY GROUP 4 620 2 207 6 827

7 FORENOM1 3 432 1 205 4 637

8 STOCKHOLM MEETING SELECTION 3 147 5 376 8 523

9 JT GRUPPEN 3 342 1 140 4 482

10 WINN HOTEL GROUP - - 3 475 3 475

Photo: Stallmästaregården

85,000T H E A P P R O X I M AT E N U M B E R O F H O T E L R O O M S I N

R A D I S S O N H O S P I TA L I T Y ' S P O R T F O L I O .


Definitions

HOTEL CLASSIFICATION

OVERVIEW

Hotel classification is used to guide and facilitate guests when choosing a hotel. Usually, stars are used to signal the quality level of a hotel. They are normal-ly reported on a five-level scale (1-5 stars), where one star is the lowest level and five is the highest level. This is the rating system which has been utilized in the report.

The number of stars is assessed based on criteria that evaluate areas such as reception services, hotel rooms (beds, bathrooms, etc.), food and beverage, meeting facilities and recreation. There are also a range of different types of quality criteria. This can be about complaint handling, website functions, ecolabelling etc.

The classification of stars in this report is based on a number of sources. The main source has been Hotel-stars Union, which is a European-wide organization that determines the classification standard for hotels in the member states. In Sweden, Visita, through its subsidiary Sveklass, is responsible for the hotel classi-fication. However, most of the hotels in Sweden are not included in this classification, for example, there are no hotels from Scandic Hotels and Nordic Choi-ce Hotels. To enable meaningful comparisons, An-nordia has obtained ratings, where it is missing from Hotelstars Union, from online travel agencies such as Hotels.com, Booking and Tripadvisor, and has made its own assessment in cases where the hotel lacks an official rating.

EXAMPLE CRITERIAS - 5 STARS

• Front desk staffed around the clock• Suites• Extra toiletries in the room• Lunch and dinner seven days a week• Exclusive decor


• Reception staffed 18 hours• The hotel is staffed around the clock• Dinner six days a week• Room service• High quality interior


• Reception staffed at least 14 hours• One seat per bed in the rooms• Internet connection in room• Rooms are equipped with private bath/wc• TV adapted to room size


• Breakfast buffet or equivalent• 1 towel per person• Soap in the shower• Reading lamp by bed• Coat rack

EXAMPLE CRITERIAS - 1 STAR

• Single bed with min. dimensions 80 x 190 cm• Daily cleaning of rooms• Reception accessible around the clock

Invest Stockholm

Invest Stockholm is the City of Stockholm's invest-ment promotion agency whose main task is to contri-bute to increased sustainable growth by attracting investments and establishments to the Stockholm re-gion. Invest Stockholm is also marketing Stockholm as an attractive city under the brand Stockholm - the Capital of Scandinavia, and provide services to the business community. The services aim to improve the conditions of running, starting and establishing com-panies in Stockholm and the region.

Contact [email protected]

Connect with Invest Stockholm on social mediaTwitter: @investstockholmLinkedin: Invest StockholmFacebook: InvestStockholm

AddressInvest StockholmP.O. Box 16282SE-103 25 Stockholm, SwedenPhone + 46 8 508 280 00

About the author

Annordia is a full-service advisor for investments in hotel properties. As a full-service advisor, Annordia assists its clients through every phase of the invest-ment cycle – from market analysis and concept deve-lopment to operator search and lease and transaction advisory.

Annordia can be reached on [email protected]. Read more on www.annordia.com.

Photo: Hobo Hotel

Invest StockholmP.O. Box 16282

SE-103 25 Stockholm, Sweden

Phone + 46 8 508 280 00

[email protected]

www.investstockholm.com

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